It can be hard to file bankruptcy. Bankruptcy is an acceptable option if you are in a bad financial situation and have very limited options. However, there are some things that can be done to get what you want.
Prior to filing for bankruptcy, research which assets will remain exempt from creditors. There are several assets which are exempt from bankruptcy; therefore, consult the Bankruptcy code. You need to read the exemptions for your state, so you know what property you can protect. If you don’t read this list, there is a chance that you might get nasty surprises when they take your things away.
Do not give up. When you file for personal bankruptcy, you may even be able to retrieve personal property that has been repossessed. For example you may be able to get your car, electronics and even jewelry returned to you. If it has been fewer than 90 days since you filed for bankruptcy, it is possible for you to get repossessed property back. Discuss your options with a good lawyer who can help you with the filing of your bankruptcy petition.
Stay abreast of new laws that may affect your bankruptcy if you decide to file. If you want to file for bankruptcy successfully, it’s important to review the latest applicable laws. They tend to change frequently. Your state’s website should have the information that you need.
Chapter 7
There are two types of bankruptcy filing, Chapter 7 and Chapter 13 so make sure you know the differences. Under Chapter 7 type bankruptcy, all debts are forgiven. Your responsibilities to your creditors will be satisfied. But, with Chapter 13, you will be in repayment plan for about 5 years prior to any debts you have being totally dissolved. It is important that you understand the differences between the different types of bankruptcy, so that you can decide which option is best for you.
Many bankruptcy lawyers offer free consultations, so go to several before choosing one. Just be sure that the person you speak with really is the lawyer, rather than a paralegal, since they cannot legally give advice. Take some time to talk to different lawyers to find one that fits your needs, and meshes well with you.
Remember that your Chapter 7 filing may affect other people in your life as well. You may have your responsibility for your portion of the loan discharged under Chapter 7. Although filing for bankruptcy excludes your from financial responsibility, co-signers will still be expected to pay the loan amount in full.
Take action when the time is right. When you time things right, it does you good, especially when you’re filing for personal bankruptcy. For some people, filing right away is best, however for others, waiting a while is best. Consult with an attorney who specializes in bankruptcy so you know when it is a good time to file.
Because bankruptcy is such a challenging time that a great deal of stress, both mental and emotional, may be involved. If you want to protect yourself from stress, see to it that you hire a good attorney. Make your hiring decision based on several criteria, not just on price. Quality is far more important than expense when it comes to a good bankruptcy attorney. Ask your friends, relations and acquaintances who have shared your experience to give you referrals to good lawyers. If you really want to check up on them check out how well they do at court hearings.
Know the bankruptcy code backwards and forwards before filing. Did you know that in some areas, you cannot transfer assets from yourself to another person in the year previous to filing occurring? Moreover, a filer is prohibited from spending or incurring extra debt prior to their bankruptcy filing.
Before you file for personal bankruptcy, take great care in paying off your debts. The laws surrounding bankruptcy often prohibit paying back certain creditors up to ninety days prior to filing, and family members up to a year! Read up on the rules before you make any decisions about your finances.
Some people don’t know that bankruptcy can actually help your credit more than making late or no payments to your creditors. Bankruptcies can remain on your credit reports for 10 years, you can jump right into repairing your credit. A great feature of bankruptcy is its ability to provide consumers with a clean financial slate.
A lot of individuals who have found themselves filing for bankruptcy think that they will never borrow money or use a credit card again. However, building a good credit history requires that you occasionally use credit. Avoiding credit altogether prevents you from rebuilding your credit standing, and will therefore serve as an obstacle when you wish to finance a house or a vehicle. Begin to go down the right path by obtaining a single card.
Before you decide to file bankruptcy, you should think of ways to become more financially responsible. Do not take on more debt or use more of your current credit. Judges and bankruptcy trustees take your repayment history into account when deciding the terms of your bankruptcy. You should demonstrate through your current behavior that you are actively changing your personal financial habits.
Although you have already filed for personal bankruptcy, don’t make the mistake of thinking that you’re now marked for life. Saving your money goes a long way to show your lenders concrete proof that you are serious about reestablishing your credit. You will receive more favorable treatment when you apply for a loan if you start saving now.
