Considering Bankruptcy? Read These Important Tips First!
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 this article to find out more about personal bankruptcy and get the information you need to make an educated decision. All knowledge that you can gain at this point will only help you on the difficult road ahead.
A lot of people find themselves needing to file bankruptcy when they are unable to pay their bills. If this applies to you, be sure that you know what the laws of your state are. Bankruptcy rules vary by jurisdiction. Some states may protect you home, and some may not. Make sure you know the laws where you live before you file.
Ensure that you are providing genuine details when filing a bankruptcy petition, because honesty is the best policy when dealing with bankruptcy. It is vital that you disclose all information about your assets and income so there are no delays or penalties, such as a court barring you from filing again later in the future.
Prior to filing for bankruptcy, research which assets will remain exempt from creditors. To find an itemized list detailing assets exempt from bankruptcy, find the Bankruptcy Code. Make sure that you carefully look over this list prior to filing to discover if your valuable assets will be seized. Failure to do this could cause some ugly surprises down the road when you discover that your valuables must be seized.
Be as honest as you possibly can when filing for bankruptcy; hiding liabilities or assets will only hurt you in the long run. All of your financial information, be it positive or negative, must be disclosed to those in charge of filing your case. They need to know it all. Don’t hold back information and create a strategy so you can deal with what’s really happening.
Consider filing a Chapter 13 bankruptcy. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. That way, you can hold onto your personal assets and pay back a portion of your debts pursuant to an approved plan. Lasting anywhere from three to five years, this plan will allow you to be discharged from unsecured debt. Remember that missing a payment to the plan will result in your case being dismissed.
Do not forget to be around those you love. Undergoing bankruptcy can be a difficult experience. It can be long and drawn out which adds lots of stress and leaves people feeling empty inside. Some folks tend to stay in the shadows until their case has concluded. However, this isolation will just make you feel worse, and it could cause you to be depressed. Because of this, you need to make sure you spend as much time as you can with your family and friends, even if you are ashamed of your finances.
As shown in this article, bankruptcy doesn’t happen overnight. Many steps have to be taken, and all of them must be performed properly. By using the tips in this article, you will be able to successfully file for bankruptcy and begin to rebuild your life.