Having to file for personal bankruptcy is never a positive experience. Bankruptcy is a touchy subject, and people often don’t want to mention it when someone asks about their finances. So do not think that bankruptcy will solve all of your problems, use this guide in order to fix your financial situation if possible.
It’s important that you understand what bankruptcy is and how it will change your life before you attempt to file a claim. The United States Department of Justice and American Bankruptcy Institute are both sites that provide free advice. The more you know about it, the better you are able to make the best decision for your situation and to make sure that the bankruptcy proceedings move forward with minimal setbacks.
Try to find a bankruptcy attorney who is personally recommended, rather than off the Internet, or out of the yellow pages. Some companies just want to take advantage of you, so it is important that you have help from someone you trust.
Find out what you exemptions are prior to filing bankruptcy. There are some assets that cannot be seized through bankruptcy, and the law lists those assets. It is important that you read this list before filing for bankruptcy, so that can find out whether or not your most prized possessions will be seized. This will ensure that you do not have any surprises once you have filed bankruptcy.
Keep with what you have decided to do. There may still be way to get repossessed items back after you file for bankruptcy. Filing for bankruptcy may allow you to regain ownership of recently repossessed property. Talk to your lawyer to find out how to go about properly filing a petition.
Investigate any new laws before deciding to file a bankruptcy. If you want to file for bankruptcy successfully, it’s important to review the latest applicable laws. They tend to change frequently. To learn about these changes, try contacting your state’s legislation office or checking their website.
Think carefully about your different options before filing for bankruptcy. If your debts are really not overwhelming, you may find the assistance you need by consulting a consumer credit counselor. You might also be able to negotiate lower payments yourself, but make sure that you get written records of any debt modifications to which you agree.
Many bankruptcy lawyers offer free consultations, so go to several before choosing one. Be certain to speak with an attorney, not their paralegal or law clerk, since they cannot give legal advice. Look for a lawyer who you can relate to.
Make sure your home is safe. You don’t have to lose your home just because you are filing for bankruptcy. You might be able to keep your home, contingent on certain factors, such as your home decreasing in value or having a second mortgage. There are other options such as a homestead exemption which offers you a chance to remain in your home, depending on whether or not you meed certain financial conditions.
It is important to understand clearly the benefits of a Chapter 7 or 13 bankruptcy. Take time to research this online and see the pros and cons for filing each one. If you are confused by what you find, be sure to ask your attorney to explain anything that is unclear before you make your decision about filing.
Be certain that bankruptcy truly is your best option. Consolidation could be the avenue you need to get your finances back in order. Bankruptcy cases are long, anxiety-filled experiences. It will certainly affect the credit rating that you have in the future. Because of this, you need to think of bankruptcy as a nuclear option; that is, a last resort.
While going through this process, spend more time with friends and family. Going through a bankruptcy is never easy. It takes a long time, it can be stressful, and people feel unworthy, guilty and ashamed. It is not uncommon for a person to feel the need to pull away from loved ones during the process. But, keeping to yourself is likely to cause even greater sadness and despair. Thus, you must keep living your life and socializing with those you love, no matter what is going on with your bankruptcy.
If you are moving forward with a Chapter 7 bankruptcy, you need to learn how that can negatively affect anyone who shares loans with you. When filing for Chapter 7, you won’t be responsible legally for debt signed by co-debtors and yourself. But, creditors will ask for the money from your co-debtor.
Be sure you’re acting when the time is right. The timing of your filing could be important to its success. Sometimes it is the best option to file quickly, whereas in other situations filing should be put off until the worst has already passed. Speak with a bankruptcy lawyer to discuss the proper timing for you to file bankruptcy.
Clearly, filing for personal bankruptcy is not your only option. These tips can help you avoid bankruptcy. Use what you’ve learned here to see how much you’re able to change things now so you aren’t harming your credit history.
