Professional Advice For Dealing With Personal Bankruptcy
Posted at by PConran on category BankruptcyDeciding to file for personal bankruptcy is a major life decision, and should not be jumped into lightly. Digest the information contained herein, so that you are aware of what you can expect and you know what actions to take prior to making that critical decision. It’s important that you gather as much info as possible before filing.
If you are faced with the choice of filing for bankruptcy or using your emergency fund or retirement accounts to pay creditors, opt to file for bankruptcy. Unless there are no other options, your retirement funds should never be touched. You may have withdraw from your savings every now and then, but try to leave yourself some financial security for the future.
Don’t hesitate to give your attorney a heads-up about something she has missed. Don’t assume that they’ll remember something important later without having a reminder. All information submitted to the court with your signature needs to be double checked.
If you can, get a word-of-mouth referral for a lawyer. Bankruptcy attracts a lot of fly-by-night firms that take advantage of desperate people, and a word-of-mouth recommendation makes it more likely that your bankruptcy will go smoothly.
Before you file for bankruptcy, find out which of your assets will be exempt from seizure. The kinds of assets which may be exempted during bankruptcy proceedings are listed in the Bankruptcy Code. You need to read the exemptions for your state, so you know what property you can protect. Failure to do this could cause some ugly surprises down the road when you discover that your valuables must be seized.
Don’t ever pay a bankruptcy attorney for a consultation, and ask a lot of questions. When you arrive at a consultation ask plenty of questions. You should also seek free consultations from several attorneys prior to choosing one. Choose an attorney who is experienced, educated and well-versed in bankruptcy laws. There is no need to offer an immediate hire, so take your time. If you’re unsure, don’t hesitate to talk to multiple bankruptcy lawyers.
Prior to declaring bankruptcy you really need to be sure that you’ve exhausted all your other options first. For example, consumer credit counseling services can often help you figure out a workable repayment plan with creditors. It is also possible to do your own debt negotiations; however, be sure to get everything in writing.
Be sure you have no other choice but to seek bankruptcy. You may well be able to regain control over your debts by consolidating them. A bankruptcy filing takes a great deal of time, and it can be extremely stressful. Your future credit will be affected by these actions. Because of this, you need to think of bankruptcy as a nuclear option; that is, a last resort.
Consider if Chapter 13 bankruptcy is an option. Chapter 13 bankruptcy is a good choice for people whose unsecured debts amount to lower than $250,000 and who receive a regular income. You can secure your home under Chapter 13 and pay your debts with a payment plan. This repayment period usually lasts from three to five years. If you make your payments faithfully during that time, any remaining unsecured debt will be eliminated. Remember, though, that if you fail to make even one payment, the case will be thrown out and you’ll be right back where you started.
Think about any co-debtors you have prior to filing for Chapter 7 bankruptcy. Debts that involved a co-signer can be discharged in Chapter 7 bankruptcy. So, in short, if you file bankruptcy, but they do not, they will be held completely responsible for your joint actions.
Don’t overly concern yourself with any negative feelings you are having. Feelings of low self-worth, shame and guilt are common for those who have come to the point where bankruptcy is their only option. Continuing to let yourself feel that way can damage your emotional health and does not benefit you in your endeavors to deal with your financial situation. Keep a positive state of mind to deal with your tough financial situation.
As shown in this article, bankruptcy doesn’t happen overnight. By going through the process correctly, the outcome will be further in your favor than it might otherwise have been. Take advantage of the advice in this article, and make sure everything you have is in order. With bankruptcy, you can’t be too careful.