The economy is in very bad shape right now. A poor economy means more people than ever have debt and are losing their jobs. The unfortunate result of this is that more and more people are filing for personal bankruptcy. When you or a loved one is contemplating bankruptcy, it is important to read the following piece in order to understand available alternatives.
One of the most important things to remember when filing for bankruptcy is to be honest and truthful every step of the way. Do not hide any income or assets or go on a spending spree before filing for bankruptcy: the court will find out and will not have a positive opinion of you.
You may end up losing more than you bargained for when you file a bankruptcy claim, so be sure that you know just which assets may be taken before filing. Check the bankruptcy laws in your state to find out if certain items are excluded from your bankruptcy filing. Be sure that you study this list. Make yourself aware of any assets you have that could be seized. If you fail to go over this list, you may be unpleasantly surprised sometime down the road if any of your most valued items are seized.
Be as honest as you possibly can when filing for bankruptcy; hiding liabilities or assets will only hurt you in the long run. The lawyer representing you when you file needs to have full knowledge of your financial situation. Being honest is both the right thing to do and, moreover, it is required by law.
Avoid paying for a consultation with the bankruptcy attorney, but do ask many questions. When you arrive at a consultation ask plenty of questions. You should also seek free consultations from several attorneys prior to choosing one. Decide which lawyer you like best buy reviewing all of the lawyers’ answers to your questions. Choose the lawyer who addressed your issues the best. After your consultation, take your time to make your decision. You can take your time and check out several attorneys before making your final selection.
Before you decide to file bankruptcy, be sure to check for any new laws that may apply to your case. Make sure to get the most up-to-date information concerning the bankruptcy laws in your state. To learn about the changes, you should check out the website of your state’s legislation or you can call their office.
You may have heard bankruptcy referred to differently, either as Chapter 7 or Chapter 13. Learn the differences between the two before filing. Every one of your debts will be gone if you decide to go with Chapter 7. Your ties with all creditors will get dissolved. Chapter 13 bankruptcy allows for a five year repayment plan to eliminate all your debts. It’s important to know what differences come with every type of bankruptcy. This will let you find out what’s best for you.
Learn about teh differences between Chapter 13 and Chapter 7 bankruptcy. There is a wealth of information online about each type of bankruptcy and their respective pluses and minuses. If there is anything that you don’t understand, go over it with your lawyer so that you can make the best decision.
Bankruptcy Filing
If your income exceeds your obligations, you should not seek bankruptcy protection. Remember that the record of your personal bankruptcy filing will be discernible on the report of your credit for as many as 10 years. For this reason, bankruptcy filing should not be taken lightly.
Your trustee may be able to help you secure an auto loan or get a mortgage even though you have filed Chapter 13. However, there are steps which must be taken to ensure you are within the law of bankruptcy. You will have to get this loan approved by your trustee. In order to show that you’re capable of paying off your new loan, prepare a budget that includes its payments. The odds are also good that you will be asked exactly why you’re purchasing a new item. Make sure you have a good reason.
Although the economy is slowly picking up, there are still many people left without jobs and a decent wage. You can avoid bankruptcy even with no steady source of income. This article should have given you some solid advice for staying afloat in tough times. Hopefully, everything works out for you!
