How To File Bankruptcy The Correct Way
Posted at by PConran on category BankruptcyDebt is one of the scariest things to live with. In some cases, what started as a manageable amount of debt turns into an insurmountable challenge. By the time it gets to the point of overwhelming you, fixing it is difficult. Continue reading to learn great advice to help you understand what you need to know about bankruptcy and debt.
Consider all options before deciding to file for personal bankruptcy. Alternatives do exist, including consumer credit counseling. Bankruptcy will be on your credit report and affect your credit score for many years to come, so it is a decision that should not be taken lightly. Try to use it as a last resort.
If you suspect that bankruptcy filing may be a reality, don’t try to discharge all your debt in advance by emptying your retirement or saving accounts. You should never touch your retirement accounts, unless you have absolutely no choice. Your savings accounts offer valuable financial security so try to leave them intact.
Research what assets are exempt from seizure before you decide to declare bankruptcy. 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. Failure to do this could cause some ugly surprises down the road when you discover that your valuables must be seized.
Never pay for a consult with a bankruptcy lawyer, and ask plenty of questions. Most attorneys offer free consultations, so meet with a number of them before you retain one. Only make a decision after you have met with several attorneys and all of your concerns and questions have been addressed. You can think about your decision before making a commitment. This will give you extra time to interview several attorneys.
If you are making more money than you owe, bankruptcy should not even be an option. Sure, bankruptcy can get rid of that debt, but it comes at the price of poor credit for 7-10 years.
Talk to an attorney about reducing your car payments so that you can keep your vehicle. A lot of the time, your payments may be lowered due to Chapter 7 bankruptcy. There are certain requirements and restrictions such as a loan that has a high interest rate, cars purchased 910 days before you file, and a steady job history that can help you keep your vehicle.
When you are looking at a Chapter 7 personal bankruptcy, you may well have debts to worry about for which you share responsibility with another person, such as a spouse, family member, or business partner. When filing Chapter 7, you are not legally responsible for the debts in your name. But, bear in mind, the debt now becomes the sole responsibility of your co-debtor.
Before declaring bankruptcy, it is important to know your rights. Occasionally, debt collectors will attempt to convince you that your debt isn’t eligible for bankruptcy. There are few debts that can’t be discharged. If a bill collector attempts to say their bill cannot be discharged, look it up. If they are wrong, report them.
Forget about detrimental terms, such as shame, when you are filing for personal bankruptcy. Filing for bankruptcy leads people to feel all sorts of emotions like shame, guilt and feeling irresponsible. Try not to give in to these feelings, as they are of no help to you and they can affect your emotional health. If you are filing for bankruptcy and you are thinking negatively about the situation, make an effort to stop that now.
As you’re well aware of by now, it doesn’t take long to find yourself drowning in debt with no way out. The tips you just read will help you take advantage of bankruptcy to help you regain control of your financial life. Use this advice to create a better sense of command of your life.