Filing for personal bankruptcy is quite a complicated process. There are a number of kinds of bankruptcy. The type that applies to you will be chosen based upon the type of debts you have. Research into what will best suit you is important before you consider filing. Check out the tips listed below if you want some solid info on the subject.
Don’t avoid telling your lawyer specific details with your case. You cannot expect your lawyer to remember every important detail without some reminder from you. This is your future in their hands, so don’t be scared to mention it.
When looking for a lawyer to handle your bankruptcy claim, the best way to go is off of a personal recommendation instead of simply flipping through the phone book. Don’t be taken in by some fly-by-night company that exists only to profit from the suffering of others. Check out any lawyer you are considering thoroughly before engaging him or her.
Many people need to file for bankruptcy when they owe more money than they can pay off. If you find yourself needing to file for bankruptcy it is important to familiarize yourself with the state laws. Each state has its own set of rules regarding bankruptcy. In certain states if you file for bankruptcy your home remains protected, but the laws vary depending on where you reside. It is best to become familiar with your state’s laws regarding bankruptcy before you take the steps to file.
Don’t pay to for an initial consultation with a bankruptcy attorney, and thoroughly question each candidate. Almost all lawyers will give a free consultation, so meet with more than one before making a decision on whom to hire. You should make a final decision only once all of the questions or concerns are sufficiently attended to. You need not decide right away. This will give you extra time to interview several attorneys.
Take steps to ensure your home is protected. Losing your home is thought of as common in bankruptcy cases, but it is by no means inevitable. It may be possible to keep your home if the value has depreciated, or there is a second mortgage. If you meet certain criteria, you may be able to retain ownership of your home even after filing for bankruptcy.
Be sure you know what the difference between Chapter 13 and Chapter 7 bankruptcy is. Get a good grasp of the pluses and minuses each type of filing involves by researching both of them extensively. Engage your attorney in a conversation about each type, and ask him to answer any questions you may have before deciding which kind is right for you.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. Most of the time, you cannot discharge this debt. As a result, you will owe the IRS a lot of money. If the tax can be discharged, so can the debt. Thus, it doesn’t make sense to use a credit card when it is going to be discharged when you file for bankruptcy.
If your income exceeds your obligations, you should not seek bankruptcy protection. The cost to your credit history far outweighs the simplicity of the easy-out bankruptcy. This is a hard pill to swallow for many.
Once your initial filing is complete, it is time to take some time to relax a little. The filing process is extremely stressful for a lot of the people who go through it. It is essential to cope with this stress well, to prevent becoming depressed. You must realize that things will get better over time.
If you really want to keep your vehicle, speak with your lawyer about possible choices. You can often lower your payment using Chapter 7 bankruptcy. There are qualifications, such as the loan being high interest and a good work record for this option.
It can be difficult to obtain unsecured credit once you have filed for bankruptcy. If you are in this situation, applying for a secured card may be the answer. This at least shows you are making an honest attempt at reestablishing your credit worthiness. After a while, you may be able to get unsecured credit again.
Your trustee may be able to help you secure an auto loan or get a mortgage even though you have filed Chapter 13. There will, however, be obstacles. Your bankruptcy custodian will need to approve the loan. When meeting with the trustee, bring a budget which shows that you will be able to afford the payment on the loan you are trying to get. It will also be necessary to show why a new purchase needs to be made.
Do your homework so you thoroughly understand the laws pertaining to bankruptcy before you file. For instance, you need to know not to shift assets into someone else’s name in the year leading up to your filing. It is also illegal for someone who files for bankruptcy to drastically increase their debts on credit cards immediately before filing.
You will now be aware that a good deal of thought should be applied before bankruptcy papers are filed. Once you have determined that filing for personal bankruptcy is the right choice for a you, engage an experienced and respected lawyer. With the help of a good lawyer, you can make your way through the process easily and secure in the knowledge that you are doing it right.
Learn the newest bankruptcy laws before filing. The laws change a lot, so you need to look them up and have a better idea of how to properly approach the bankruptcy process. Your state’s website should have the information that you need.