Personal Bankruptcy: Do I Have Any Choices?
Posted at by PConran on category BankruptcyThe mere thought of bankruptcy is enough to strike fear into the hearts of people. Increasing debt, along with being unable to support a family can be an actual nightmare for some. If this applies to you, or if you are worried about it happening, this article can help.
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. 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.
Don’t hesitate to give your attorney a heads-up about something she has missed. Don’t just assume that the attorney will remember it automatically. Don’t be afraid to speak up, as it is your case and your future will be affected by its outcome.
Instead of relying on random selections from the phone book or Internet, ask around and get personal recommendations. There are lawyers out there who will take advantage of your financial state and not deal honestly with you. Make sure your filing process goes as well as possible by finding a trustworthy lawyer.
You should not have to pay for a consultation with a bankruptcy attorney. Make sure you ask lots of questions. Most lawyers offer free consultations, so consult with a few before settling on one. Therefore consult with different lawyers and get a feel for them, then decide which one suits your needs You need not decide right away. You can take your time and check out several attorneys before making your final selection.
There are two types of bankruptcy filing, Chapter 7 and Chapter 13 so make sure you know the differences. If Chapter 7 is what you file, your debts will get eliminated entirely. Your responsibilities to your creditors will be satisfied. Chapter 13 bankruptcy allows for a five year repayment plan to eliminate all your debts. It is important that you understand the differences between the different types of bankruptcy, so that you can decide which option is best for you.
Before picking a bankruptcy lawyer, speak with more than one, since most offer a consultation for free. Ask to speak with the licensed attorney and not a representative, who can not offer legitimate legal counsel. Shopping around for a lawyer can help you find someone with whom you feel comfortable.
Bankruptcy should not be filed by anyone who makes more than their bills cost. While bankruptcy may seem like an easy way out of having to pay back all of the debt that you owe, it is a stain that will remain on your credit report for seven to ten years.
Once you clear the hurdle of filing for bankruptcy, live a little, but not too much. The process of filing for bankruptcy can make people a nervous wreck. That stress could lead to complete depression, if you do not take the necessary steps to fight it. Life is going to get better once you get through this.
During a Chapter 13 bankruptcy, you may still be able to get a mortgage or car loan. There are extra hoops to jump through. Normally, the trustee assigned to your bankruptcy must approve any new loan. Create a budget and prove you can afford a new loan payment. You will always have to let them know why this item needs to be purchased.
Don’t file for personal bankruptcy until you’ve looked into your other options. You might want to look into the possibility of credit counseling instead. There are non-profit organizations that you can use. They’ll talk to creditors and strive to get both your payments and interest rates lowered. You’ll make your payments to the company, and the company will pay off your creditors.
Many people are frightened by bankruptcy, and for good reason. Filing for bankruptcy can be a very stressful and fearful experience, especially if you don’t know what you’re doing. Instead of living in fear, read this article for advice. Start making use of this bankruptcy advice right now and give your financial life a fresh new start.