Hard Time Understanding Bankruptcy? Read This Information
Posted at by PConran on category BankruptcyFiling for personal bankruptcy is a serious decision. Therefore, it is very important to understand what you are doing when you file for bankruptcy. The information in this article will help you separate fact from fiction. A good amount of research will help you choose the right path to take.
Lots of people have to claim bankruptcy when their bills are larger than their income. If this is your case, you should do some research about bankruptcy laws in your state. There are greatly varying laws concerning bankruptcy, so it is important to make sure you are getting the correct information. For instance, in some states you can keep your home and car, while other states prohibit this. It is best to become familiar with your state’s laws regarding bankruptcy before you take the steps to file.
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. Not only is hiding income and assets wrong, it is also a crime.
Don’t be reluctant to remind your lawyer about specific details he may not remember. It is wrong to assume that your lawyer will remember every word you ever utter! Remember that you’re the boss. You’re paying your lawyer, so you should not be afraid to have your say. After all, the quality of your life hangs in the balance.
Once the bankruptcy is complete, you may find it difficult to receive unsecured credit. If that’s the case, it is beneficial to apply for one or even two secured cards. This will allow you to start building a good credit history while minimizing the bank’s risk. After a while, you may be able to get unsecured credit again.
Try going to a personally recommended bankruptcy lawyer instead of using a phone book or the Internet. There are various companies that prey on the financially desperate, so you need to find someone you can trust to ensure the process goes smoothly,
Before filling for bankruptcy, determine which assets will be exempted from seizure. The Bankruptcy Code provides a listing of the various asset types that are not included in the bankruptcy process. Be sure that you study this list. Make yourself aware of any assets you have that could be seized. If you fail to do so, things could get ugly.
Be sure your home is well protected. Just because you’re going bankrupt doesn’t mean that you also have to be homeless! It depends what your home value is and if there is a second mortgage, as all this stuff comes into play when determining if you can keep the home. You could also check out the homestead exemption. This lets you continue living in your house, depending on whether you meet certain financial requirements.
Before you decide to file for Chapter 7 bankruptcy, consider how it could affect other people on your credit accounts, such as family members or business partners. When filing Chapter 7, you are not longer liable for the debts that you and a co-debtor signed for. However, creditors can demand co-debtors pay the amount in full.
If you are planning to file for bankruptcy in the immediate future, you should refrain from taking out cash advances via your credit cards. This is considered fraud, and even after bankruptcy you can be forced to pay all of that money back to the credit card company.
As this piece suggests, personal bankruptcies come in different packages. Don’t let the amount of information overwhelm you! Take the time you need to think clearly and analyze the information. By doing so, you can make better choices in regards to bankruptcy.