Tips For Successfully Filing The Right Way For Bankruptcy
Posted at by PConran on category BankruptcyWhen you decide to file for personal bankruptcy, it is a very serious decision that should not be entered into lightly. Read the suggestions below to learn what you should expect, and the steps you will need to take as you think through this decision. Research the topic extensively in advance.
Lots of people have to claim bankruptcy when their bills are larger than their income. If this is your case, you should do some research about bankruptcy laws in your state. Bankruptcy laws vary from state to state. Your house is safe in certain states; however, in other states, it isn’t. It is best to become familiar with your state’s laws regarding bankruptcy before you take the steps to file.
Learn as much as you can about bankruptcy by going to informational websites. The United States Check out the Bankruptcy Institute site and do some research about consumer’s rights. Knowing is half the battle, after all, and these websites are the first step in learning what you need to know to make your bankruptcy smooth and stress-free.
Ask yourself if filing for bankruptcy is the right thing to do. Look into credit counseling to see if it could help you work out of your debt without bankruptcy. Bankruptcy has a negative effect on your credit reports, in that it is permanently there. Before you take this step, make sure all your options have been considered.
One of the most important things to remember when filing for bankruptcy is to be honest and truthful every step of the way. Not only is hiding income and assets wrong, it is also a crime.
Do not be afraid to remind your attorney of important specifics of your case. Never assume that they can remember all details without reminders. This is your bankruptcy case, so do not be afraid to remind your lawyer of any key facts.
Weigh all of your options before declaring bankruptcy. For instance, a consumer credit counseling program may be a better bet if your debts are relatively small. You could even negotiate for lower payments. However, you should ensure that you always obtain a written record of all the changes to your debt that you’ve agreed to.
See if your attorney can help you lower your payments if you want to keep your vehicle. Filing under Chapter 7 is usually a good way to lower your payments. But, your car has to have been bought at least 910 days before you file. Also, it must come from a high interest loan and you have to have been consistently working.
Carefully consider filing for bankruptcy on loans that have a co-signer, especially if that co-signer is a business associate, close friend or relative. When filing Chapter 7, you are not legally responsible for the debts in your name. However, if you had a co-debtor, they will be required to pay the debt.
Find the right time to take action. Timing is critical, particularly when it comes to filing for bankruptcy. Sometimes, you may need to file quickly; however, at other times, you should wait until the worst is over. Speak with a bankruptcy lawyer about when the best time is to file for your specific needs.
As you can probably see, filing bankruptcy does not happen quickly or easily. Many steps have to be taken, and all of them must be performed properly. By following the above advice, you will make fewer mistakes and find yourself better prepared.