Bankruptcy Advice Every Consumer Should Know In Advance
Posted at by PConran on category BankruptcyFiling for bankruptcy is a very important decision and one that shouldn’t be taken lightly. Read this article to find out more about personal bankruptcy and get the information you need to make an educated decision. Doing as much research as possible is important.
It’s important that you understand what bankruptcy is and how it will change your life before you attempt to file a claim. The United States Justice Department, the ABI (American Bankruptcy Institute), as well as the NABCA (National Assoc. Consumer Bankruptcy Attorneys) are excellent sources of information. Knowing as much as possible about bankruptcy gives you an advantage and will help you make the best decision possible.
As filing bankruptcy becomes more of a reality, don’t use your entire savings or your retirement funds to pay creditors or attempt to resolve insolvency. Avoid touching your retirement accounts whenever possible. You may need to use some of your savings; however, you should not use all of your savings. Remember that you must safeguard your future financial security.
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. As long as you are not hiding income or assets from the courts, you can ensure that there are no difficulties with your petition. This will save you from having your petition dismissed and your debts dropped from re-filing.
Prior to filing for bankruptcy, research which assets will remain exempt from creditors. The federal statutes covering bankruptcy can tell you exactly which assets are exempt from forfeiture to pay off creditors. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. If you don’t read it, you could have nasty surprises pop up later due to your prized possessions being seized.
When a bankruptcy is imminent, retain a lawyer immediately. There are a lot of things to do during bankruptcy and that may be hard for you to understand on your own. Personal bankruptcy attorneys can help make sure everything is done properly.
Seek a less serious option prior to filing for bankruptcy. For example, if you only have a little bit of debt, you might be better off if you went through consumer credit counseling. You may also find success in negotiating lower payment arrangements yourself, but be certain to get any arrangements with creditors in writing.
Most bankruptcy lawyers give free consultation, so try to meet with these types of lawyers before deciding on hiring one. Always ensure that the person you meet with is a real lawyer, not a legal assistant or paralegal. These people can’t give legal advice. Seeking out different attorneys is all part of the process until you find someone that you can trust.
Before filing bankruptcy consider every available avenue. Many times a consolidation loan will ease your financial struggles. It is not a quick and easy process to file for bankruptcy. It will also make it tough for you to secure credit after your filing is complete. This is why you must make sure bankruptcy is your last resort.
Consider if Chapter 13 bankruptcy is an option. If you currently have some income and don’t have more than $250k in debt, you can declare bankruptcy. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. The plan is usually for a term of three to five years, and a discharge will be granted at the end of that term. 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.
After reading the previous article, it is obvious that bankruptcy is not something that takes place on its own. There are a number of things to do, each of which deserves careful attention. By using the tips in this article, you will be able to successfully file for bankruptcy and begin to rebuild your life.