A lot of people in this day and age are deeply into debt. The bills keep adding up and it is never a friendly voice on the other line when the phone rings. If this is happening to you, then you might want to think about personal bankruptcy. Read the following paragraphs to decide if this path is one that you should take.
A lot of people find themselves needing to file bankruptcy when they are unable to pay their bills. When you get into this situation yourself, your first step is to familiarize yourself with your local bankruptcy regulations. Each state has its own laws regarding personal bankruptcy. Some states protect your home, and others do not. Familiarize yourself with the bankruptcy laws of your state prior to filing.
Credit History
Ask yourself if filing for bankruptcy is truly your best option. There are other options available, such as credit counseling for consumers. Bankruptcy is a serious negative on your credit history so make sure you have no other options before you file. It is important to keep your credit history as positive as possible.
Avoid exhausting your savings or emptying your retirement accounts to pay off creditors if you are considering filing for bankruptcy. Unless there is no other choice a retirement account should not be used. Your savings accounts offer valuable financial security so try to leave them intact.
It is important to remind your lawyer of any details that may be important to your case. Lawyers are people too, and sometimes they forget important information and need to be reminded. Do not hesitate to speak up; this is your hearing and your future is on the line.
Ask those you know if they have an attorney to recommend, instead of finding one on the Internet or in the phone book. There are lots of unsavory companies and lawyers out there who prey on people who are in desperate straits. It is up to you to find someone that is trustworthy and can make the process go smoothly.
Stay abreast of new laws that may affect your bankruptcy if you decide to file. Laws are subject to change, and it’s important that you’re educating yourself about current code only. To stay up-to-date on these laws, check out your state’s government website.
Before declaring bankruptcy, be sure you’ve weighed other options. One example would be that a consumer credit program for counseling if you have small debts. You should also try negotiating a payment plan with your creditors; make sure you get a written agreement of the new payment plans.
Since the majority of attorneys are willing to provide no-cost initial consultations, it is smart to meet with more than one before you make a selection. Meet with the actual lawyer, not a paralegal or assistant, as they’re not allowed to give out legal advice. Comparing different lawyers makes it possible to find one with whom you work well.
It is possible to keep your home. Bankruptcy doesn’t always mean you’ll lose your home. You can still keep your home, it just depends on your specific situation and the value of your home. Check to see if you pass the requirements necessary to file for a homestead exemption.
It is important to understand clearly the benefits of a Chapter 7 or 13 bankruptcy. Spend time researching the advantages and disadvantages of filing for each one of these. If you do not understand what you are reading, talk to your attorney before making that serious decision.
Don’t file for bankruptcy if it is not completely necessary. Consider whether debt consolidation may be a more viable alternative. Bankruptcy is not a simple, breezy course of action that should be taken lightly. Your future credit will be affected by these actions. This is why it is crucial that you explore your other debt relief options first.
Remember to have fun with your life when you’re done with the filing process initially. Filing is the most intensive step in the process, so afterwards it’s important to let go of some of your stress. Make sure you take care of your part and let your attorney do the rest. Once the process if over, your life will improve.
Before declaring bankruptcy, it is important to know your rights. Do not take debt collectors at their word when they tell you that a specific debt can’t be discharged through bankruptcy. Few debts exist that are not covered by bankruptcy, such as student loans or child support. If you know that a debt can definitely be bankrupted, yet the collector still harasses you, file a report with the attorney general in your state.
Now you should be aware that there is plenty of available help when thinking about filing for bankruptcy. If you approach this with a clear mind and in the right way, it can give you the debt relief that you have longed for and will enable you to get back on your feet.
