What Should You Consider When Filing Bankruptcy?
Posted at by PConran on category BankruptcyMany people are terrified every time to hear the word bankruptcy. It is only natural that people are afraid of skyrocketing debt that causes hardship for themselves and their family members. If this scares you, or you are experiencing this living horror, then this advice will be of use to you.
Ensure that you are providing genuine details when filing a bankruptcy petition, because honesty is the best policy when dealing with bankruptcy. Not hiding any assets or income is essential for avoiding possible penalties and your ability to re-file at some point in the future.
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.
Do not abandon hope. Certain property cannot be repossessed while you are in the process of filing for bankruptcy so be sure to learn about the laws in your state. If your personal property was repossessed within 90 days before your bankruptcy filing, you may have a chance of getting it back. Get help from your lawyer to file a petition so you can get your items back.
Prior to choosing a bankruptcy attorney, seek a free consultation with at least three attorneys. Never settle for speaking with a paralegal or an assistant. They are not trained, nor allowed, to pass on legal advice. Seeking out different attorneys is all part of the process until you find someone that you can trust.
Be sure you know what the difference between Chapter 13 and Chapter 7 bankruptcy is. Take the time to find out about each one online, and look at the advantages and disadvantages of each. Do not hesitate to have your lawyer explain any details that seem difficult to grasp. This will help ensure you make the right choice when filing.
Determine if bankruptcy is necessary. Sometimes consolidating your existing debts can make them more manageable. It is not a quick and easy process to file for bankruptcy. In addition to the stress associated with bankruptcy, you will also have to deal with severely restricted credit in the future. Therefore, before you file for bankruptcy you need to consider all of your alternatives.
Consider Chapter 13 bankruptcy for your filing. If you posses a regular source when it comes to income, and you have less than $250,000 of unsecured debt, you could file using Chapter 13 bankruptcy. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. This lasts for three to five years and after this, your unsecured debt will be discharged. Bear in mind that if you miss a single payment that is due under your plan, the entire case will be dismissed by the Court.
Before proceeding with your bankruptcy, it’s a good idea to start spending ample time with the people you care about most. Bankruptcy proceedings can be extremely harsh. It is often overwhelming, and not quick. Some people may feel embarrassed or feel their self-esteem has taken a beating from it. A lot of folks decide to hide themselves from the world around them until the end of the process. Do not isolate yourself or you will put yourself at risk for depression. Make it a point to catch yourself if you feel yourself pulling away from others. Tell others that you would like to do some enjoyable things together while you go through bankruptcy process, then do it.
Many people are frightened of bankruptcy, and rightly so. However, bankruptcy is not the end of the world, and this article is here to help you understand how not to be overwhelmed by it. Use the bankruptcy information in this article to make your financial life yours again.