It’s normal to feel angry and frustrated when going through bankruptcy. Those who file bankruptcy worry they will be stuck and unable to pay their bills and still live their lives everyday. Bankruptcy should be looked at as a way to move forward, and get things back on the right financial track again. This article will help you understand how.
You should check with the personal bankruptcy resources available online to educate yourself thoroughly before you begin the process. The United States DOJ, the NACBA, and the ABI all have useful information. The more you know, the better prepared you will be to make the best decisions and ensure that your bankruptcy goes smoothly.
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. Not only is hiding income and assets wrong, it is also a crime.
Do not be afraid to remind your attorney of important specifics of your case. Inaccurate or incomplete information can lead to your petition being denied. Your case and future are affected by the attorney’s action, so never be afraid to communicate.
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 you’re really not sure how this all works after your research, meet with your lawyer and ask them prior to making a decision.
Chapter 13
Chapter 13 bankruptcy might be a good option, so don’t overlook it. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. This lasts for three to five years and after this, your unsecured debt will be discharged. Just ensure that you take necessary precautions, as missing one payment can result in the court dismissing your case.
Make time to visit with family and friends during the bankruptcy process. Going through bankruptcy is a lot of stress. It’s generally stressful, lengthy and can make people feel guilty, ashamed, and unworthy. Many people don’t feel like socializing during the ordeal. Pulling away from people who care for you will not help the situation, and can cause your negative feelings to intensify. Therefore, meet this challenge head on and surround yourself with caring family members so you can get through this difficult financial situation.
Talk to an attorney about reducing your car payments so that you can keep your vehicle. Filing under Chapter 7 is usually a good way to lower your payments. You must have bought the car 910 or more days before you filed, the loan must have a high interest rate, and you have to have a secure and steady working history in order for that to work.
Filing for bankruptcy can cause stress. To relieve yourself of some stress and keep thing organized, hire a good lawyer. Don’t make your choice to retain a particular lawyer simply because they are the cheapest. Your lawyer does not necessarily have to be the most expensive one; however, you should be certain of his or her qualifications and abilities. Do not choose an attorney until you have interviewed them, checked with the better business bureau and checked their standing with the bar association. If you really want to check up on them check out how well they do at court hearings.
Personal Bankruptcy
Make sure you know what you should be doing when you file for bankruptcy. There are many pitfalls when it comes to the code pertaining to personal bankruptcy that can lead to a lot of unwanted issues. Small errors could even cause your case to be dismissed. Before you go forward, make sure you thoroughly research personal bankruptcy. Doing so will make the process a lot easier.
Normally, you will not lose your assets when filing bankruptcy. You will be able to keep your personal property. You may keep personal items like jewelry, household furnishings, clothes and electronics. You will need to talk to a bankruptcy attorney to find out whether your local laws and personal situation will allow you to keep your car or home.
Now that you’ve read this article, I hope you can see that having personal bankruptcy doesn’t necessarily mean doom for you. It can be daunting, but you can do it. If you use these tips and ideas, you will be on your way to a better financial future.
