Nowadays, there are many people experiencing the woes of overwhelming debt. Filing chapter 7 or 11 can be the last option for many people. If this is happening to you, personal bankruptcy may be an option. Read the following paragraphs to decide if this path is one that you should take.
Before you proceed with your personal bankruptcy case, review your decisions to be certain that the choice you are making is the right. There are plenty of other options open to you, like consumer credit counseling. Bankruptcy will be on your credit report and affect your credit score for many years to come, so it is a decision that should not be taken lightly. Try to use it as a last resort.
The most important tip a person filing for personal bankruptcy can remember and follow is to be completely transparent in all dealings. Do not try to shield some assets or income from your creditors. This can get you in serious trouble and prevent your bankruptcy petition altogether.
Don’t fear reminding your attorney of any specific details of your case. Don’t assume that he will remember something you told him weeks ago. Speak up, because it is your future on the line.
When looking for a lawyer to handle your bankruptcy claim, the best way to go is off of a personal recommendation instead of simply flipping through the phone book. Bankruptcy attracts a lot of fly-by-night firms that take advantage of desperate people, and a word-of-mouth recommendation makes it more likely that your bankruptcy will go smoothly.
Determine which assets won’t be seized before filing for bankruptcy. The Bankruptcy Code contains a list of various assets that are excluded from bankruptcy. It is important to be aware of this list so you will know what assets are saved. If you don’t read this list, there is a chance that you might get nasty surprises when they take your things away.
If you are considering filing for bankruptcy you definitely need to hire an attorney. Bankruptcy can be highly confusing and stressful, and you need an unbiased partner who can help simplify the process. A qualified bankruptcy attorney will guide you through the steps and help you do everything properly.
Take advantage of free consultations with lawyers and the ability to sift through and find the right one. Ask to speak with the licensed attorney and not a representative, who can not offer legitimate legal counsel. Be sure to check out a number of lawyers so that you will find one who is just right for you.
Learn the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Take the time to find out about each one online, and look at the advantages and disadvantages of each. If there is anything that you don’t understand, go over it with your lawyer so that you can make the best decision.
Chapter 13
Thing about filing a Chapter 13 bankruptcy. You are probably eligible for Chapter 13 if your income is consistent and your unsecured debt is under $250,000. The benefit of this plan is that you retain personal belongings and private real estate and your debts are repaid by an organized payment plan. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. Remember, though, that if you fail to make even one payment, the case will be thrown out and you’ll be right back where you started.
While going through this process, spend more time with friends and family. The process for bankruptcy can be hard. Having to declare bankruptcy leaves many people feeling like a failure. Lots of people choose to disappear for a while until the entire process is over and done with. Self-imposed isolation can make you feel worse about it and can cause depression. Spend time with your family, talk about your problems and find things that relax you.
Once your initial filing is complete, it is time to take some time to relax a little. Bankruptcy is a stressful process: you will have to go over your bad financial decisions and perhaps feel ashamed about your decision. That stress could lead to complete depression, if you do not take the necessary steps to fight it. Life will get better; you just need to make it through the bankruptcy process.
If keeping your vehicle is of great concern, ask your lawyer if you can secure a payment modification. Filing under Chapter 7 is usually a good way to lower your payments. Here are the qualifications in regards to your vehicle: you must have bought it nine hundred and ten days or more before filing for personal bankruptcy; your loan must carry high interest; your work history must be steady and solid.
Clearly, significant resources and assistance can be had by anyone contemplating personal bankruptcy. If you open your mind to this process and think clearly, it can lead to better financial situation and leave you in a much better position than before.
