If you have been put into the position of needing to file for bankruptcy, you are likely not to be very happy about it, but it does not lead to your life ending. With a clean slate, it is possible to start over both financially and personally. The article you’re about to read contains great information on bankruptcy and how you can proceed with filing a claim.
Don’t feel bad if you need to remind your attorney about any specifics of your case. Don’t assume that he’ll remember something from a month ago; tell him again. This is your bankruptcy case, so do not be afraid to remind your lawyer of any key facts.
Never pay to have a consultation with a lawyer, and ask a lot of questions. Seek free consultations from a handful of lawyers, before deciding which one to hire. Don’t hire an attorney who fails to address all your concerns and questions. You need not decide right away. This will give you extra time to interview several attorneys.
Check into less drastic solutions prior to declaring bankruptcy. For example, if you only have a little bit of debt, you might be better off if you went through consumer credit counseling. You may also find success in negotiating lower payment arrangements yourself, but be certain to get any arrangements with creditors in writing.
Chapter 7
Be sure you know how Chapter 7 and Chapter 13 differ. Chapter 7 involves the elimination of all of your debt. You will no longer be liable for any money that you owe to your creditors. In a Chapter 13, though, you’ll be put on a payment plan for up to 60 months before being free of your debts. In order to choose the right bankruptcy option, you need to know the differences between these kinds of personal bankruptcy filings.
Most bankruptcy lawyers give free consultation, so try to meet with these types of lawyers before deciding on hiring one. It is important to meet with the actual attorney, not the attorney’s assistant or paralegal; those people are not permitted to give legal advice Searching for the best lawyer will help you located the comfort you need during this time.
Filing for bankruptcy is not the best choice if your monthly income is enough to cover your bills. Bankruptcy may appear like the easier way to avoid paying your old bills, but it is a huge mark on your credit score and remains there for up to 10 years.
Consider all options before filing for bankruptcy. Talk with a bankruptcy lawyer and ask about alternatives, such as debt consolidation or negotiating with creditors. If you are about to lose your house, talk to your lender about a loan modification. These plans allow you a longer pay off period by extending the term of the loan, reducing the rate of interest or forgiving late fees. After all is said and done, your creditors will still want their money. For this reason, you may wish to investigate debt repayment programs in lieu of bankruptcy programs.
Know your bankruptcy rights. Occasionally, debt collectors will attempt to convince you that your debt isn’t eligible for bankruptcy. There are, indeed, some debts that cannot be bankrupted. Among them are student loans, child support and alimony payments. If these are not the categories in which your debts fall, double check to see if the type of debt can be bankrupted. If it can, be sure to file a complaint about the debt collector with the office of the state attorney general.
Do your homework so you thoroughly understand the laws pertaining to bankruptcy before you file. For instance, for 365 days before filing, no one is able to receive assets from the filer. Not only that, but the filer cannot lawfully accrue additional debt just prior to filing.
Consider all available options before deciding to file for personal bankruptcy. Credit counseling is an important option for you to pursue. There are many non-profit debt counseling services available. With their assistance, you can reduce the payments you have to make and even get some of the interest removed from your debts. Often, they make the payments to your creditors, and you make your payment to them.
Don’t take big cash advances off your credit cards in the days prior to filing for bankruptcy. Doing so, is a type of fraud that may result in your having to pay back all money advanced from credit card accounts in the months just prior to your bankruptcy.
Bankruptcy Attorney
If bankruptcy is likely in your future, think about hiring a bankruptcy attorney. A bankruptcy attorney will advise you of the necessary steps to file bankruptcy as well as represent you in bankruptcy court. The lawyer you chose can take you through the paperwork step-by-step and resolve any questions about the process.
As stated in the above article, anytime someone is forced into bankruptcy is never a happy situation. Yet after bankruptcy, you can be happy again. Bankruptcy is not the end; by applying some or all of the tips in this article, you will make the process much smoother and your financial recovery that much faster.
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