Advice On And Options For Declaring Personal Bankruptcy
Posted at by PConran on category BankruptcyBankruptcy definitely causes short-term stress, but if you’re responsible, it can be a relief in the long term. It is embarrassing having people research into your finances and assets. By contrast, once your bankruptcy is complete, you will have the freedom to rebuild your credit without being hounded by debt collectors. Read on for advice on easing the pain of bankruptcy.
Ask yourself if filing for bankruptcy is truly your best option. Other available options include consumer credit counseling. Before you take the drastic move of filling for bankruptcy and living with a long lasting bad credit history, make sure to consider using another way that may not be as damaging to your credit.
When bankruptcy seem inevitable it is important not to use your retirement funds or emergency savings to pay creditors. Avoid touching your retirement accounts whenever possible. Although it is quite normal to use some of your savings, ensure that you leave enough in your account for emergencies.
Prior to filing for bankruptcy, research which assets will remain exempt from creditors. The Bankruptcy Code provides a list of all the different kinds of assets that you can exclude. Prior to filing for bankruptcy, it is critical that you go over this list, so that you know if you can expect any of your most valuable possessions to be seized. If you neglect this important step, you might be blindsided when a possession that is important to you is taken to repay creditors.
Never pay to have a consultation with a lawyer, and ask a lot of questions. Most attorneys offer free consultations, so meet with a number of them before you retain one. Only choose a lawyer if you feel like your questions were answered. Take your time before you decide to file after you meet with your lawyer. You can take as much time as you need to meet with different lawyers.
You need to educate yourself on the differences between Chapter 7 and Chapter 13. All debt will be eliminated with Chapter 7. Any debts that you owe to creditors will be wiped clean. On the other hand, filing for bankruptcy under Chapter 13 means you will have 60 months to pay your debts back. Both options have advantages and drawbacks, so do your research before deciding.
If you are considering filing for personal bankruptcy, be certain that this is really the right course of action for you. Many times a consolidation loan will ease your financial struggles. Filling for bankruptcy is a lengthy, stressful process. Credit will be much harder for you to come by after you file for bankruptcy. Thus, you must make certain that bankruptcy really is the only viable solution to your problems.
There are benefits and detriments to filing bankruptcy. Never forget that being well-informed is always the key to a successful bankruptcy, no matter what your reasons for filing are. What you read above can easily help you get a handle on the entire process. Apply all of the knowledge you have gained from this article and you will be on your way to feeling more at ease about your bankruptcy.