Carrying too much debt is a problem a lot of people are dealing with now. Creditors and bill collectors hound them and there is no slow down in their bills. If this sounds like you and your situation, filing for bankruptcy may be a good idea for you. The article below will help you figure out if bankruptcy is right for you.
Be certain you understand all you can about bankruptcy by researching reputable sites that offer good information. Many sites, including the U.S. Run a quick Internet search to find out all the different agencies you should be contacting or visiting via the web to find out what you can. The more information you have, the more confident you can be about any decision you make and you will know that you are doing the best thing possible for your situation.
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. Not hiding any assets or income is essential for avoiding possible penalties and your ability to re-file at some point in the future.
Look for a bankruptcy lawyer that comes from a personal recommendation instead of someone random on the Internet or in the yellow pages. Bankruptcy attracts a lot of fly-by-night firms that take advantage of desperate people, and a word-of-mouth recommendation makes it more likely that your bankruptcy will go smoothly.
Don’t file for bankruptcy until you know what assets of yours can and can’t be seized. You can find a listing of the asset types that are excluded from bankruptcy in the Bankruptcy Code. It’s crucial to read that list before filing to see which of your prized possessions can be seized. You may find yourself unpleasantly surprised when the things you value the most are taken from you without warning. This is why it is very important the familiarize yourself with this list.
Investigate any new laws before deciding to file a bankruptcy. This area of law is in constant flux and it is imperative that you know where the law stands at the time you file for your bankruptcy. All of these changes will be addressed on the state’s legislative site. You can also contact them directly by phone or office visit.
Chapter 13
The two main kinds of bankruptcy are Chapter 7 and Chapter 13. Make sure you understand them so you know what is best for you. In Chapter 7 most of your outstanding accounts will essentially be erased. Any ties that you have with creditors will be dissolved. In a Chapter 13, though, you’ll be put on a payment plan for up to 60 months before being free of your debts. Look into both types of bankruptcy before deciding which one would suit your particular needs.
Be sure you have no other choice but to seek bankruptcy. You may be able to get away with going through debt consolidation to help make the payments easier to deal with. The whole process of filing for bankruptcy can be a long, and hard one. The future of your credit will be greatly affected. So, consider bankruptcy only as a last resort when you have no other choice.
Before ultimately deciding whether or not to file for bankruptcy, be sure to weigh the different options available to you. Talk with a bankruptcy lawyer and ask about alternatives, such as debt consolidation or negotiating with creditors. For example, if you are in talks of foreclosure, you could use a modified loan to overcome your debt. Some lenders will make concessions rather than losing the money owed to bankruptcy. These concessions include waiving late fees, lowering interest rates, and changing the loan term. Ultimately, creditors want their money, and many times repayment plans are preferable to a debtor that is bankrupt.
It does not take much experience with bankruptcy to understand that the entire process can be extremely stressful. By hiring a competent attorney, you can alleviate some of that stress. Look beyond the fees a lawyer charges when you make your hiring decision. You don’t have to use the most expensive attorney; you just need a good quality attorney. Rely on word-of-mouth referrals from others who have filed for bankruptcy, check the BBB, and take advantage of free consultation offers. You could even attend a court hearing to see how an attorney handles his case.
Before you file, make sure you understand the laws as much as possible. For instance, you need to know not to shift assets into someone else’s name in the year leading up to your filing. Also, a person cannot legally increase their debt amount on credit cards prior to filing.
Financial Information
When you are filing for bankruptcy, make sure you list all of the financial information you may have. Omissions or errors may cause your case to take more time to resolve, or even be rejected entirely. All financial information needs to be considered by the court. Current loans, second jobs and assets ought to be included.
Exhaust all other option prior to filing personal bankruptcy. Consider credit counseling. A number of non-profit companies can assist you. They will liaise with those you owe money to and try to get better payment options opened to you. You’ll make your payments to the company, and the company will pay off your creditors.
Normally, you will not lose your assets when filing bankruptcy. You will be able to keep your personal property. These personal items include clothing, jewelry, household furnishings, electronics and other similar items. Depending on your financial situation and what state you live in, you might be able to keep property such as your home and car, or even recover property that has been recently repossessed.
You should now understand that there is more than one path to take when it comes to bankruptcy. Tackling this in a logical and emotionless manner will relieve you of your debt issues while giving you a fresh start for the future.
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