Filing for bankruptcy is not a simple process. Because of the various types of claims out there, and also the different ways in which you can approach filing, your particular situation will be personal to you. Prior to filing, there is a lot you need to know. This article is a great place to start learning this information.
Individuals often seek to file for personal bankruptcy protection if their debts exceed their ability to repay them. When you get into this situation yourself, your first step is to familiarize yourself with your local bankruptcy regulations. Every state has a separate law having to do with bankruptcy. In some areas, your residence may be completely exempt, but in others, it will not be. Before filing for personal bankruptcy, be certain that you are familiar with the laws.
One of the most important things to remember when filing for bankruptcy is to be honest and truthful every step of the way. Withholding or lying about certain information can seriously worsen your financial situation. It could lead to being unable to file for bankruptcy or even legal trouble.
Generally bankruptcy is filed when a person is facing insurmountable debt. Study the laws in you state to learn what you need to do and what your options are. Different states have different laws regarding bankruptcy. For instance, in some states, you can’t lose your home to bankruptcy, while in other states, you can. Know what the laws are in your state before filing.
Be warned that after your bankruptcy, you may stand out as a leper to credit institutions. You may be unable to get a simple credit card. If so, apply for a secured credit card. This will allow you to start building a good credit history while minimizing the bank’s risk. If you pay your secured card off on time, you’ll eventually find that companies will start offering you unsecured credit.
If you can, get a word-of-mouth referral for a lawyer. 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.
Don’t avoid telling your lawyer specific details with your case. Lawyers are people too, and sometimes they forget important information and need to be reminded. This is your bankruptcy and your future, so never be nervous about speaking your mind.
When a bankruptcy is imminent, retain a lawyer immediately. It is difficult to make all of the necessary decisions yourself, and expert guidance will be helpful. Talk to a bankruptcy lawyer, they can help clarify anything that you might have confusion with.
Do some research to find out more about Chapter 13 and Chapter 7. Chapter 7 bankruptcy completely wipes out your debt. Your ties with all creditors will get dissolved. Chapter 13, on the other hand, involves a five year payment period before any remaining debts are cancelled. When choosing the type of personal bankruptcy that is correct for you, it is very important that you know the differences.
Do some research to find out which assets you could lose by filing for personal bankruptcy. Certain assets, as listed in the local bankruptcy regulations, are immune from seizure during bankruptcy. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. If you don’t read it, you could have nasty surprises pop up later due to your prized possessions being seized.
Before filing a bankruptcy claim, make sure that your home is well protected. Filing bankruptcy does not necessarily mean that you will lose your house. 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.
Be sure you know what the difference between Chapter 13 and Chapter 7 bankruptcy is. 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.
Bankruptcy should not be filed by anyone who makes more than their bills cost. Remember that the record of your personal bankruptcy filing will be discernible on the report of your credit for as many as 10 years. For this reason, bankruptcy filing should not be taken lightly.
No matter what, don’t give up! You may be able to regain property like electronics, jewelry, or a car if they’ve been repossessed by filing for bankruptcy. If you have property repossessed less than ninety days prior to filing your bankruptcy, you may be able to get it back. Consult with a lawyer who can advise you on what you need to do to file a petition.
Bankruptcy is not a decision to be taken lightly. After weighing all of your options, if you conclude that bankruptcy is the best option for your particular situation, be sure to hire a competent attorney. Follow the advice given in this article to get through this rough time and move on to a more secure financial future.