If you are thinking about filing for bankruptcy, research all your options before making an informed decision. Look through the suggestions this article has to offer so you understand the ideas you should be thinking about when it comes to filing for bankruptcy. Educate yourself as much as possible prior to taking action.
Do not hesitate to remind your lawyer of any details regarding your case. Don’t just assume that the attorney will remember it automatically. Be as open as you can be to make sure your bankruptcy goes as well as possible.
Prior to filing for bankruptcy, discover which assets cannot be seized. The Bankruptcy Code provides a list of all the different kinds of assets that you can exclude. You can determine exactly which of your possessions are at risk by consulting this list before you file. 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 honest when filing for bankruptcy. Don’t hide liabilities or assets, as they’ll come back and haunt you. The person you choose to file with needs to know both the good and bad aspects of your finances. Divulge all of your information so that you and your lawyer can devise the best strategy for dealing with your situation.
Investigate any new laws before deciding to file a bankruptcy. Laws are subject to change, and it’s important that you’re educating yourself about current code only. A qualified bankruptcy attorney is the best source for the latest information regarding the laws in your state.
Many bankruptcy attorneys offer the first consultation with no charge, so consult with several before deciding on one. By law, paralegals and assistants can not give legal advice, so be sure that you are meeting with an actual attorney. By meeting with several attorneys through a free consultation you will be able to choose which attorney you feel more comfortable with.
Be sure your home is well protected. Filing for bankruptcy does not mean you have to lose your home. Depending on if your home’s value has gone down or if it has a second mortgage, you might be able to keep it. You could also check out the homestead exemption. This lets you continue living in your house, depending on whether you meet certain financial requirements.
Make sure you know how to differentiate between Chapter 13 and Chapter 7. Take the time to find out about each one online, and look at the advantages and disadvantages of each. If anything you see is unclear or doesn’t make sense, go over it again with your attorney before making the final filing decision.
If you are making more money than you owe, bankruptcy should not even be an option. Bankruptcy may appear like the easier way to avoid paying your old bills, but it is a huge mark on your credit score and remains there for up to 10 years.
Remember to have fun with your life when you’re done with the filing process initially. It is common for people to stress when filing. Depression and burn-out from pent of stress will do nothing to help your situation, so it is critical to let go a little. You must realize that things will get better over time.
It is still possible to get a mortgage or car loan, even if you are filing for Chapter 13 bankruptcy. It is much harder. Your trustee must approve any new loans such as this. When you meet with your trustee or financial adviser, make sure that you come up with a sound budget proposal. You will also need to have a good reason why you need the item.
Look into other options before deciding to file for bankruptcy. Think about credit counseling, for example. There are many different non-profit companies that can help you. These organizations can work with creditors to lower your payments and interest rates. You’ll make your payments to the company, and the company will pay off your creditors.
If you’re continuously making delinquent payments and are constantly missing payments, filing for bankruptcy might just be a kinder, gentler solution for you. While bankruptcy will show up in you credit file for the next 10 years, you can begin the process of making your credit situation better right away. In other words, bankruptcy can give you an opportunity to start over if handled correctly.
Normally, you will not lose your assets when filing bankruptcy. Personal property is exempt from bankruptcy claims. Whether jewelry, furnishings, electronics and even clothes – these items can be protected. Your current state’s laws, deciding between Chapter 7 or 13, and your current financial position will determine just how much you get to keep.
You should know by now that bankruptcy does not just pop up out of nowhere. Many things have to be done properly. By using the above suggestions, you will be sure that all your Ts are crossed and all your Is are dotted when it comes to filing for bankruptcy.
