How You Can Avoid Filing For Bankruptcy
Posted at by PConran on category BankruptcyPeople often shudder at the mention of the word bankruptcy. Increasing debt, along with being unable to support a family can be an actual nightmare for some. If this applies to you, or if you are worried about it happening, this article can help.
Millions of Americans file for bankruptcy each year because they can not pay their bills. If you’re in this position, it is a good thing to familiarize yourself with the laws that apply in your area. There are greatly varying laws concerning bankruptcy, so it is important to make sure you are getting the correct information. In a few states, they see to it that your house is protected. This is not the case when it comes to other states. Do you research about legal ins and outs in your state before you begin the bankruptcy process.
Don’t avoid telling your lawyer specific details with your case. You cannot expect your lawyer to remember every important detail without some reminder from you. Your case and future are affected by the attorney’s action, so never be afraid to communicate.
Prior to filing your bankruptcy petition, go over the list of assets that cannot be seized by creditors. The Bankruptcy Code contains a list of various assets that are excluded from bankruptcy. Make sure to review the list before filing a claim so you know if your valuables will be subject to seizure. If you neglect this important step, you might be blindsided when a possession that is important to you is taken to repay creditors.
Make sure you are completely honest when filing for bankruptcy. Hiding your assets is never wise. The person you choose to file with needs to know both the good and bad aspects of your finances. Bankruptcy can be a chance to simplify your finances, but any schemes you employ to conceal the truth can ruin that chance for you.
Don’t pay to for an initial consultation with a bankruptcy attorney, and thoroughly question each candidate. Most lawyers will meet with you for free and give you helpful advice, so meet with several. Don’t choose a lawyer until your questions about bankruptcy are sufficiently answered. Take your time choosing the right attorney to assist in your bankruptcy. If you’re unsure, don’t hesitate to talk to multiple bankruptcy lawyers.
Before filing a bankruptcy claim, make sure that your home is well protected. Bankruptcy filings don’t necessarily have to end in the loss of your home. Depending on whether the value of your home has decreased or if you have a second mortgage on the home, you may end up keeping it. Additionally, some states have homestead exemptions that might let you keep your home, provided you meet certain requirements.
Speak with your attorney about ways you can keep your car. Chapter 7 bankruptcy is one of the most common and effective. For instance, you can get lower payments on you car if you purchased it before filing and took a loan with high interests on it.
When you file for bankruptcy, you should be very aware of your rights. Don’t take a debt collectors word for it simply because they tell you that you can’t have many or all of your debts erased by bankruptcy. There are not many debts that can not be bankrupted, student loans and child support for example. If a collector tries to convince you that some other type of debt, such as a credit card, is non-discharagable, get the company’s information and send a report to your state attorney general’s office.
Consider all available options before deciding to file for personal bankruptcy. You might want to look into the possibility of credit counseling instead. There are many non-profit debt counseling services available. They can work with both you and your creditors to find a feasible way in which your debts can be paid off. Often, they make the payments to your creditors, and you make your payment to them.
People who fear bankruptcy are wise to do so, because it is never a pleasant experience. You may have been scared before, but this article has probably allayed your fears. You can improve your life and safeguard your family by following the personal bankruptcy advice presented here.