Are you having financial problems and think bankruptcy is the lone choice you have? Don’t feel bad, you are in good company. Many people, globally, have had to resort to bankruptcy for their financial hardships. You are going to be given advice in this article that will help ensure the bankruptcy process goes properly.
When it soaks in that filing for personal bankruptcy, don’t use all of your retirement funds, or all of your savings to resolve insolvency or pay creditors. You should make every effort to leave your retirement accounts untouched until your retire. Although it is quite normal to use some of your savings, ensure that you leave enough in your account for emergencies.
Don’t avoid telling your lawyer specific details with your case. Never assume that they can remember all details without reminders. Be as open as you can be to make sure your bankruptcy goes as well as possible.
If you know people who have filed for bankruptcy, ask them who they would recommend rather than relying on Internet reviews or worse, just randomly picking someone out of the phone book. There are lawyers out there who will take advantage of your financial state and not deal honestly with you. Make sure your filing process goes as well as possible by finding a trustworthy lawyer.
Find a bankruptcy attorney who offers free consultations, and ask lots of questions. Almost all lawyers will give a free consultation, so meet with more than one before making a decision on whom to hire. Choose to file only if your lawyer has convinced you that this is the best decision. There is no need to offer an immediate hire, so take your time. So you have sufficient time to speak with a number of lawyers.
If you are considering filing for bankruptcy you definitely need to hire an attorney. Personal bankruptcies are detailed and complex processes, and you may miss something that costs you money. A specialized bankruptcy lawyer can ensure that you are handling your bankruptcy filing the right way.
Chapter 7
Know the differences between Chapter 7 and Chapter 13 bankruptcy. Chapter 7 eliminates all debts. Your responsibilities to your creditors will be satisfied. If you choose to file for Chapter 12 bankruptcy, you’ll be put into a 60-month plan for repaying your debts before they’re eliminated. Take the time to learn more about these different options so you can make the best decision possible.
Many bankruptcy attorneys offer the first consultation with no charge, so consult with several before deciding on one. Just be sure that the person you speak with really is the lawyer, rather than a paralegal, since they cannot legally give advice. Hiring a lawyer could help you become comfortable with the legal things that you will encounter.
Take steps to ensure your home is protected. It isn’t inevitable that you will lose your house when you file for bankruptcy. It depends what your home value is and if there is a second mortgage, as all this stuff comes into play when determining if you can keep the home. If you’re not sure, however, you can always study the particular homestead exemption regulations. You will learn everything you need to know.
Understand the differences between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy. There is a wealth of information online about each type of bankruptcy and their respective pluses and minuses. Go to a specialized lawyer to ask your questions and get some useful advice on what to do.
Unsecured Debt
Consider Chapter 13 bankruptcy. If you are receiving money on a regular basis and your unsecured debt is under $250,000, you may be able to file Chapter 13 bankruptcy. That way, you can hold onto your personal assets and pay back a portion of your debts pursuant to an approved plan. This plan usually lasts from 3 to 5 years, after which, you will be discharged from all unsecured debt. Bear in mind that if you miss a single payment that is due under your plan, the entire case will be dismissed by the Court.
If you really want to keep your vehicle, speak with your lawyer about possible choices. Chapter 7 bankruptcy is one of the most common and effective. Your car must have been purchased more than 910 days prior to filing, be a high interest loan, and you must have had a steady work history for this to work.
Pick the right time to file. Timing is everything, especially in personal bankruptcy filings. In some cases, it is better to file immediately, while other situations benefit from trying to get certain finances in better shape before filing. Speak with a bankruptcy lawyer about when the best time is to file for your specific needs.
Make sure that you disclose every bit of financial information on your bankruptcy petition. If you do not do so accurately, your petition could be dismissed, or at the very least delayed. No sum is too small to be included; err on the side of caution and include everything. This financial information may include income from side jobs, vehicles you own and loans you have not paid off.
Consider your options before deciding to file personal bankruptcy. Have you been through credit counseling first? A number of non-profit companies can assist you. These companies lower your interest and payments by working with your creditors. Your payments are made to the organization and they repay the creditors.
Do not take a large cash advance from credit cards prior to filing, knowing that bankruptcy erases all debts. That is considered fraudulent behavior, and you can still have to pay the credit card back, bankruptcy or no.
Remember from the beginning of this article? You aren’t the only one who is filing for bankruptcy. Unlike other people, you’ll be more educated because of this article. Use the helpful tips in this article to assure your bankruptcy goes off without a hitch.
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