Deciding to file a bankruptcy petition is quite significant and should be done carefully and deliberately. Read the ideas and advice in the following paragraphs so that you are aware of what to full expect and should think of prior to making such a crucial decision. Take the time to educate yourself before you make your choice.
Don’t look at bankruptcy as a first step. Look at all the other options you may have first. You have other choices, including consumer credit counseling. Your credit score will be forever effected by bankruptcy, which is why you should do everything else in your power to resolve matters first.
Never lie about anything in your bankruptcy petition. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
Prior to filing for bankruptcy, discover which assets cannot be seized. To find an itemized list detailing assets exempt from bankruptcy, find the Bankruptcy Code. It’s crucial to read that list before filing to see which of your prized possessions can be seized. If you aren’t aware of this, you could lose some assets that you value.
No matter what, don’t give up! Filing for personal bankruptcy may possibly enable you to reclaim your personal property that have been repossessed, like your car, electronics and jewelry items. If your property has been repossessed less than 90 days prior to your bankruptcy filing, there is a good chance you can get it back. Get help from your lawyer to file a petition so you can get your items back.
When you do meet with a lawyer make sure that they answer all of your questions and that they do not charge you for consultation alone. Most lawyers provide a consultation for free, so consult with many of them before picking which one you want to hire. Choose to file only if your lawyer has convinced you that this is the best decision. You do not need to make a decision immediately after the consult. Take the time to meet with a number of attorneys.
Speak to a bankruptcy attorney about what new laws may be going into effect before your bankruptcy filing. Bankruptcy laws change a lot and before making the decision to file, you need to know what you are getting yourself into. To find out about these changes, you can look at your state’s legislation website or contact their office.
Chapter 13
Be sure you know how Chapter 7 and Chapter 13 differ. All debt will be eliminated with Chapter 7. All of your financial ties to the people you owe money to will disappear. If you file using chapter 13 bankruptcy, you will go through a sixty month repayment plan prior to all your debts being completely dissolved. You need to be aware of the pros and cons of each type of bankruptcy so you can correctly select the best choice for your situation.
Protect your house. Filing for bankruptcy does not guarantee that you will lose your house. It is entirely possible that you will be able to keep your home. This is dependent upon the your home’s value and whether or not you have taken a second mortgage. Check to see if you pass the requirements necessary to file for a homestead exemption.
Thing about filing a Chapter 13 bankruptcy. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. Typically, this goes on for roughly three to five years, and once this time has expired, your unsecured debt is eliminated. However, if you are unable to properly commit to the plan you agree to, your case can be dismissed.
Bankruptcy is a difficult and stressful process, and you will need all the help you can get. Make sure that you hire an experience lawyer to get your bankruptcy done properly. Try not to pick a lawyer based on cost alone. There is no need to use an expensive attorney. The important thing that you must do is to get a good attorney. Make sure people who have experienced bankruptcy give your referrals. It is even possible to watch a court hearing in order to see how well an attorney handles a case.
Do some research about bankruptcy laws before filing for bankruptcy. For example, it is forbidden for an individual to transfer any assets away from the name of the filer within the twelve months preceding filing. Maxing out your credit cards immediately before filing is also illegal.
As the preceding article suggests, bankruptcy is not something that magically happens. Many steps have to be taken, and all of them must be performed properly. By following the suggestions above, you can make sure that you have addressed all of the important items that you need to take care of during your bankruptcy.
