You should never take the decision to claim personal bankruptcy lightly. It is important that you understand everything involved in filing bankruptcy. The advice in this article will get you off to a good start. No matter what obstacles fall in your path, you can overcome them with good research.
The primary catalyst for filing personal bankruptcy is having a large amount of debt that can’t be readily repaid. If you’re in this situation, learn about the laws where you live. Bankruptcy rules vary by jurisdiction. For example, whether or not you can keep your home, as well as what you need to do to keep it, is different for every state. Be sure to have some familiarity with the law in your jurisdiction.
Ensure that you are providing genuine details when filing a bankruptcy petition, because honesty is the best policy when dealing with bankruptcy. To avoid problems, penalties and future re-filing bans, resist the urge to hide documentation or assets.
Have a good look around the Internet to see what information is relevant to you regarding bankruptcy. Many sites, including the U.S. Department of Justice and National Association for Consumer Bankruptcy Attorneys provide excellent information. 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.
Instead of getting your lawyer from the yellow pages or on the Internet, try your hardest to find one with a personal recommendation. There are various companies that prey on the financially desperate, so you need to find someone you can trust to ensure the process goes smoothly,
Prior to filing your bankruptcy petition, go over the list of assets that cannot be seized by creditors. The Bankruptcy Code provides a list of all the different kinds of assets that you can exclude. Be sure that you study this list. Make yourself aware of any assets you have that could be seized. This will ensure that you do not have any surprises once you have filed bankruptcy.
Do not give up. There may still be way to get repossessed items back after you file for bankruptcy. You may be able to get your property back if fewer than 90 days have passed between the repossession and are filing for bankruptcy. Interview and research attorneys before choosing one to help you with your bankruptcy.
Learn of new laws prior to deciding to file for bankruptcy. These kinds of laws are constantly changing and it is important that you are aware of these changes, so that you can learn how to properly file for bankruptcy. To know what these changes are, go to your state’s website or contact the legislative offices.
Before you file for personal bankruptcy, be sure that you are cognizant of all current laws. Bankruptcy law has changed substantially in recent years, and therefore you must understand how such changes may affect your situation. Keep up with your current state’s laws and regulations to figure out what steps you should take.
Ensure that you bankruptcy is your best choice. It may be that all you really need to do is consolidate some of your debts. There is not easy process associated with personal bankruptcy. Credit will be much harder for you to come by after you file for bankruptcy. Before you decide to file for bankruptcy you want to be absolutely certain that it is the only way to resolve your problems.
Chapter 13 Bankruptcy
Know and understand the difference between filing for Chapter 7 bankruptcy versus Chapter 13 bankruptcy. Research both types of bankruptcy online, and weigh the positives and negatives each would offer you. If anything you see is unclear or doesn’t make sense, go over it again with your attorney before making the final filing decision.
Consider if Chapter 13 bankruptcy is an option. Chapter 13 bankruptcy is a good choice for people whose unsecured debts amount to lower than $250,000 and who receive a regular income. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. This lasts for three to five years and after this, your unsecured debt will be discharged. However, if you miss even one payment, the court will dismiss your entire case.
It is possible to get an auto loan or mortgage during the repayment period for Chapter 13 bankruptcy. This is harder. Normally, the trustee assigned to your bankruptcy must approve any new loan. In order to show that you’re capable of paying off your new loan, prepare a budget that includes its payments. It will also be necessary to show why a new purchase needs to be made.
Don’t take large cash advances from credit cards prior to filing since the debts will be eliminated from these cards. This is against the law and it is fraud. After the bankruptcy process you can be made to pay it all back to the creditor.
Research Chapter 13 bankruptcy, and see if it might be right for you. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. It usually takes three to five years to fulfill this plan. When the time is up, you’re unsecured debts will be discharged. 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.
Clearly, when it comes to filing for personal bankruptcy, there are many options. Don’t let all the information and regulations surrounding bankruptcy overwhelm you. Take a few minutes to turn the information over in your mind and see how it might be useful to you. That way, you’ll make the best decisions.