Professional Advice For Dealing With Personal Bankruptcy

Bankruptcy filings bring both worry and relief, simultaneously. Be prepared to go through your finances with a fine toothed comb and share the information with lots of unfamiliar people. The relief is that your phone will stop ringing with harassing phone calls from debt collectors, and you can begin to rebuild your credit. This article will give you some great tips to help ease the bankruptcy process.

Before filing for personal bankruptcy, make sure you are doing the right thing. Alternatives do exist, including consumer credit counseling. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.

Do some research to find out which assets you could lose by filing for personal bankruptcy. The Bankruptcy Code provides a list of all the different kinds of assets that you can exclude. You can determine exactly which of your possessions are at risk by consulting this list before you file. If you do not read this list, you could be in for some nasty surprises in the future, if some of your most prized possessions are seized.

Be honest when filing for bankruptcy. Don’t hide liabilities or assets, as they’ll come back and haunt you. The professional that helps you file for bankruptcy has to have a complete and accurate picture of your financial condition. Divulge all of your information so that you and your lawyer can devise the best strategy for dealing with your situation.

Take the time to find a simpler solution to your financial issues, before filing for bankruptcy. One example would be that a consumer credit program for counseling if you have small debts. Sometimes you can negotiate a reduced payment, though you must strive to get it all in writing.

Many bankruptcy lawyers offer free consultations, so go to several before choosing one. Ensure that you have a meeting with a real lawyer instead of an assistant, since they can provide the best advice. Take some time to talk to different lawyers to find one that fits your needs, and meshes well with you.

Chapter 13

Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. With a regular income and unsecured debt below $250,000, Chapter 13 is probably best for you. This will allow you to keep your personal property and real estate and repay your debts via a debt consolidation plan. The length of the plan is generally up to five years, and when this is over, you will be free of unsecured debt. Missing a payment under these plans can result in total dismissal by the courts.

Know the rights that you have as you file for bankruptcy. Some bill collectors will tell you that your debts can’t be bankrupted. You should know that only a few debts cannot be erased, including student loans and child support. If your creditors are telling you any other kind of debts cannot be cancelled, get a written proof and send it to the general office of your state’s attorney to report this illegal behavior.

Be sure you know the bankruptcy laws before you think about filing. For instance, a filer cannot transfer assets to someone else for at least a year before filing. Also, it is against the law for a person to acquire more debt on their credit card prior to filing.

Don’t take too long when trying to decide whether you want to file bankruptcy. It can be difficult to admit you’re in need of help, but your debt will only grow larger if you put off your decision. By consulting a professional, you will be able to get the advice that you need before everything gets too complicated.

Think about the pros and cons before filing. Regardless of your reasons for filing for personal bankruptcy, remember that it is a process that can be extremely helpful if you are well informed. The suggestions you are about to see, will make your bankruptcy easier. Utilize these tips and let them guide you towards a stress-free financial future.