Good Advice On Why You Should Avoid Bankruptcy
Posted at by PConran on category BankruptcyPersonal bankruptcy–the process can be complex and confusing. There are many kinds of bankruptcy. They one you decide on should be based on your current debts and finances. Before you decide to file for personal bankruptcy, you need to educate yourself about it. Check out the tips listed below if you want some solid info on the subject.
Individuals often seek to file for personal bankruptcy protection if their debts exceed their ability to repay them. If you are in this position, you need to be familiar with the laws in your area. Each state has its own set of rules regarding bankruptcy. In a few states, they see to it that your house is protected. This is not the case when it comes to other states. Familiarize yourself with the bankruptcy laws of your state prior to filing.
One of the most important things to remember when filing for bankruptcy is to be honest and truthful every step of the way. To avoid problems, penalties and future re-filing bans, resist the urge to hide documentation or assets.
Be warned that after your bankruptcy, you may stand out as a leper to credit institutions. You may be unable to get a simple credit card. If this happens, instead you should turn your attention to secured credit cards. This will allow you to start building a good credit history while minimizing the bank’s risk. Once creditors see that you are making an effort to restore your credit, they may allow you to get an unsecured card 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. To handle your bankruptcy, you need a trusted attorney, not a shady one that is out to take your money.
You should not have to pay for a consultation with a bankruptcy attorney. Make sure you ask lots of questions. Most attorneys offer a free consultation which you should take advantage of. Meet with a few before finalizing your plans. Don’t hire an attorney who fails to address all your concerns and questions. You do not need to make a decision immediately after the consult. After your consultations, do some additional research on each attorney you consider qualified for the job.
Be sure to enlist the help of a lawyer if you’re going to be filing for bankruptcy. Having a lawyer on your side is the best way to avoid mistakes and bad decisions. A bankruptcy attorney can advise you on how proceed properly.
Before declaring bankruptcy, be sure you’ve weighed other options. If your debts are really not overwhelming, you may find the assistance you need by consulting a consumer credit counselor. You could even negotiate for lower payments. However, you should ensure that you always obtain a written record of all the changes to your debt that you’ve agreed to.
You need to educate yourself on the differences between Chapter 7 and Chapter 13. Should you choose Chapter 7, your total debt load will be erased. Any debts that you owe to creditors will be wiped clean. Chapter 13 bankruptcy though will make you work out a payment plan that takes 60 months to work with until the debts go away. In order to choose the right bankruptcy option, you need to know the differences between these kinds of personal bankruptcy filings.
As you can see, you should give bankruptcy a lot of thought before deciding whether or not you should file. If you think it is the right choice for you, find a lawyer that can properly guide you through the process and give you a new leash on life.