Tips To Help You Understand How To Get Through A Personal Bankruptcy
Posted at by PConran on category BankruptcyThese days, the process of bankruptcy is an all to common occurrence. There are many who recognize the role the economy has played in this epidemic. However, before you make the decision to file for personal bankruptcy, you should understand the filing process and thoroughly investigate whether it is the right choice for you. If you read this article, you will learn what you need to know.
It’s important that you understand what bankruptcy is and how it will change your life before you attempt to file a claim. The United States Department of Justice and American Bankruptcy Institute are two such places to look. Knowing as much as possible about bankruptcy gives you an advantage and will help you make the best decision possible.
Consider all options before deciding to file for personal bankruptcy. Consider any other options that are available to you, such as consumer credit counseling. Bankruptcy will leave a permanent scar on your credit report and before you take this huge step, you should search through every available option first, to help try and limit the damage to your credit.
It is important to remind your lawyer of any details that may be important to your case. Many times a lawyer may forget a key detail; therefore, it is important to remind your lawyer of any key information. Your case and future are affected by the attorney’s action, so never be afraid to communicate.
If a personal recommendation comes your way, this should be a lawyer you focus on. Companies are constantly popping up, claiming to help, yet only seek to profit from your misery. In ensuring that your bankruptcy is as simple as possible, trusting your attorney makes a big difference.
You may end up losing more than you bargained for when you file a bankruptcy claim, so be sure that you know just which assets may be taken before filing. You can find a listing of the asset types that are excluded from bankruptcy in the Bankruptcy Code. You need to compare this list to the assets you own so that you are not surprised when certain assets are seized. If you do not read this list, you could be in for some nasty surprises in the future, if some of your most prized possessions are seized.
There is hope! Once bankruptcy has been filed, you may be able to regain possession of items such as electronic goods or cars that were taken away from you. You should be able to get your possessions back if they have been taken away from you within 90 days before you filed for bankruptcy. Speak with your attorney about filing the correct petition to get your property back.
Take the time to find a simpler solution to your financial issues, before filing for bankruptcy. For example, consumer credit counseling services can often help you figure out a workable repayment plan with creditors. You may also find success in negotiating lower payment arrangements yourself, but be certain to get any arrangements with creditors in writing.
Make certain that you comprehend the differences between Chapters 7 and 13. In Chapter 7 bankruptcy, your debts are all eliminated. You will be removed from any contracts you have with your creditors. Chapter 13 is different, though. This type of bankruptcy entails an agreement to pay off your debts for five years prior to wiping the slate clean. It is worth while to take your time to research both types of bankruptcy to decide which option works best for you, and your financial situation.
As previously noted, bankruptcy is very common today, particularly because of the current economy. With the advice you have learned from this article, you will be better prepared to deal with bankruptcy, should you have to do so.