Rock Solid Tips For Avoiding Personal Bankrupcy
Posted at by PConran on category BankruptcySadly, bankruptcy is now a household word. Most people cite the economy for having to file for bankruptcy. You need to educate yourself so that you can make wise decisions when it comes to filing bankruptcy. This article can help you with that.
Knowledge is power when you’re considering bankrupcy; there are many websites available to help you. The United States Department of Justice, the American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys, all provide valuable information. Knowing is half the battle, after all, and these websites are the first step in learning what you need to know to make your bankruptcy smooth and stress-free.
Before you proceed with your personal bankruptcy case, review your decisions to be certain that the choice you are making is the right. Look into credit counseling to see if it could help you work out of your debt without bankruptcy. Bankruptcy is a permanent part of your credit, so before you make such a big decision, you might want to explore all other choices so that your credit history is affected as minimally as possible.
When it gets time to think about bankruptcy, avoid using your retirement or savings to pay off the creditors or even make attempts to settle the debt. You should never touch your retirement accounts, unless you have absolutely no choice. If you do have to dig into your savings, make sure that you leave enough to sustain you and your family for a couple of months.
Always remind your lawyer of specifics that are important to your case. You should not take for granted that your lawyer will remember every important detail that you have have told him earlier without a reminder. Don’t fear speaking up since it affects your case and future.
Try going to a personally recommended bankruptcy lawyer instead of using a phone book or the Internet. There are plenty of companies who know how to take advantage of people who seem desperate, and it’s important to be sure your bankruptcy can go smoothly; take your time and choose someone you can trust.
Stay positive. When you file for personal bankruptcy, you may even be able to retrieve personal property that has been repossessed. For example you may be able to get your car, electronics and even jewelry returned to you. If you have property repossessed less than ninety days prior to filing your bankruptcy, you may be able to get it back. Speak with a lawyer that will provide you with guidance for the entire thing.
You need to educate yourself on the differences between Chapter 7 and Chapter 13. Under Chapter 7 type bankruptcy, all debts are forgiven. Any debts that you owe to creditors will be wiped clean. Bankruptcy under the rules of Chapter 13, on the other hand, require you to work out a payment arrangement to pay back the agreed upon amounts. You need to be aware of the pros and cons of each type of bankruptcy so you can correctly select the best choice for your situation.
Since it is possible to obtain a free consultation from the majority of bankruptcy lawyers, meet with a few of them prior to choosing one. It is important to meet with the actual lawyer, because paralegals or assistants cannot give you legal advice. Looking for an attorney will help you find a lawyer you feel good around.
Protect your house. Filing for bankruptcy does not guarantee that you will lose your house. Depending on if your home’s value has gone down or if it has a second mortgage, you might be able to keep it. Otherwise, look into the homestead exemption which may allow you to stay in your home if you meet financial threshold requirements.
In conclusion, bankruptcy is common these days, many times because of the way the economy is. Apply what you’ve learned here today and make wise decisions about bankruptcy going forward.