It is an unfortunate fact that the topic of bankruptcy is quite common nowadays. The general state of the economy is at least partially to blame. Find out about all the personal bankruptcy laws in your state before filing. The following article will provide you with this information.
You should check with the personal bankruptcy resources available online to educate yourself thoroughly before you begin the process. The United States Department of Justice, the American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys, all provide valuable information. 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.
You may end up losing more than you bargained for when you file a bankruptcy claim, so be sure that you know just which assets may be taken before filing. You can find a listing of the asset types that are excluded from bankruptcy in the Bankruptcy Code. 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. 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.
Chapter 13
Be sure you know how Chapter 7 and Chapter 13 differ. If you file for Chapter 7 bankruptcy, all of your debts will be eliminated. All creditor relationships will be severed. 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 have to know what differs between all of the kind of bankruptcy, so you know which is one is ideal for you.
A free consultation is standard for bankruptcy attorneys, so shop around before settling on one. Always ensure that the person you meet with is a real lawyer, not a legal assistant or paralegal. These people can’t give legal advice. Seeking out different attorneys is all part of the process until you find someone that you can trust.
Take steps to ensure your home is protected. Filing for bankruptcy does not mean you have to lose your home. 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. Otherwise, there is a homestead exemption you should look into, as it might let you stay in your house.
Know and understand the difference between filing for Chapter 7 bankruptcy versus Chapter 13 bankruptcy. Go to a reputable website and research the benefits and detriments of each type of bankruptcy. Do not hesitate to have your lawyer explain any details that seem difficult to grasp. This will help ensure you make the right choice when filing.
While going through this process, spend more time with friends and family. Undergoing bankruptcy can be a difficult experience. It can be long and drawn out which adds lots of stress and leaves people feeling empty inside. Lots of people choose to disappear for a while until the entire process is over and done with. This is not a good idea because staying alone could cause serious problems with depression. Remember that it is not your families fault for your financial hardships and use this time to pull together and be strong.
See if your attorney can help you lower your payments if you want to keep your vehicle. It is possible to get your car payment lowered if you file using Chapter 7. For instance, you can get lower payments on you car if you purchased it before filing and took a loan with high interests on it.
It is possible to get an auto loan or mortgage during the repayment period for Chapter 13 bankruptcy. It’s a bit more difficult, though. Your bankruptcy custodian will need to approve the loan. Create a budget and prove that you will be able to afford it. They may also want to know why you believe you need the loan.
Know the bankruptcy code backwards and forwards before filing. For instance, somebody cannot transfer assets from a filer’s name up to a year after they file. It’s also prohibted to run up debt on credit cards just prior to filing.
Before you file bankruptcy, consider how you will pay off your debts. Check the bankruptcy laws in your state to make sure you have not done anything in the past year to make yourself ineligible to petition for bankruptcy. Do your research rather than making financial decisions blindly.
Make a quick decision to be more responsible fiscally before filing. Avoid incurring new obligations or allowing existing debt to grow in advance of your bankruptcy. The courts and your creditors will be looking at your current, as well as past, credit history when adjudicating your bankruptcy. Let them see how you are making positive changes to your personal financial management by demonstrating what you are doing right now.
As you are no doubt aware, bankruptcy is much talked about in today’s economy. To help you make good decisions regarding bankruptcy, consult with this article and use the knowledge to your advantage.
