Bankruptcy installs such negative feelings into all those that consider it. A good number of families are having trouble containing their debt and managing their expenses. If that thought scares you or if you’re already living in this horror, you can use this advice.
Always be honest with the information you give about your finances. Resisting the temptation to hide income or valuable assets from the bankruptcy trustee is a smart way to avoid potential complications, penalties, and the possibility of being barred from re-filing in the future.
Familiarize yourself with any new law before you make the final step to filing for bankruptcy. This area of law is in constant flux and it is imperative that you know where the law stands at the time you file for your bankruptcy. To learn about the changes, you should check out the website of your state’s legislation or you can call their office.
Chapter 7
Be certain to grasp the distinction between Chapter 7 and Chapter 13 bankruptcy cases. Chapter 7 eliminates all debts. All of your financial ties to the people you owe money to will disappear. On the other hand, filing for bankruptcy under Chapter 13 means you will have 60 months to pay your debts back. Take the time to learn more about these different options so you can make the best decision possible.
Before filing a bankruptcy claim, make sure that your home is well protected. Just because you’re going bankrupt doesn’t mean that you also have to be homeless! If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. Otherwise, look into the homestead exemption which may allow you to stay in your home if you meet financial threshold requirements.
Don’t forget to enjoy yourself during your bankruptcy. Many people feel a lot of stress while they work through the bankruptcy process. It is essential to cope with this stress well, to prevent becoming depressed. Life will get better after you finally get this situation over with.
Take into consideration all the ramifications of a Chapter 7 bankruptcy. Filing for this can impact any co-debtors, such as friends or family. Once you have filed Chapter 7, you, by law, are not responsible for any of your debts that also include your co-debtor. Your creditors can then come after your co-debtor for full repayment of the debt.
Debt Collectors
Know the rights that you have as you file for bankruptcy. Don’t take a debt collectors word for it simply because they tell you that you can’t have many or all of your debts erased by bankruptcy. There are only three main classes of debts that are non-dischargable: taxes, child support and student loans. If any debt collectors tell you that their debts can’t be bankrupted, make a report with your state attorney general.
Bankruptcy can cause anxiety and a host of other physical and emotional issues. Look for a good attorney who can help you through the process. Try not to pick a lawyer based on cost alone. There is no need to use an expensive attorney. The important thing that you must do is to get a good attorney. Get referred from others who’ve been in the same situation, check the BBB, and interview several people through free consultations. If you wish, you can attend a bankruptcy hearing and witness your attorney in action.
If you plan on filing bankruptcy, never wait too long. It is a mistake to ignore your financial troubles, hoping they will go away on their own. Debt could become uncontrollable and by not dealing with them properly, your wages could be garnished or you may find your home in foreclosure. Speak with a bankruptcy lawyer as soon as you become aware that you cannot handle your debts.
Before you make the final decision to file bankruptcy, consider the other options you have. Perhaps credit counseling can resolve your issues. There are many non-profit debt counseling services available. They can work with the creditors to lower payments and interest. You pay them and then they pay the creditors.
Anyone who is wary of filing for bankruptcy has probably heard how frightening the process can be. Now that you have read this article, you now never again have to be scared of bankruptcy. Take these bankruptcy tips to heart and start improving the lives of you and your family members.
