What Everyone Should Know Before Filing For Personal BankruptcyPosted at by PConran on category Bankruptcy
Bankruptcy is a complex process. There are multiple ways you can file for bankruptcy, and the one that best fits you will depend on your financial situation and what you owe. It’s imperative that you learn everything you can about the process before you even think about filing. This article has information that can help you.
You should check with the personal bankruptcy resources available online to educate yourself thoroughly before you begin the process. You can learn a lot on the U.S. D.O.J., the A.B.I and the N.A.C.B.A. are all useful organizations willing to provide educational material. The greater your body of knowledge, the better prepared you will be to make the decision of whether or not to file and to make certain that if you do file, the process is a smooth one.
If you are truly faced with bankruptcy, avoid blowing your savings or retirement money, trying to pay off debts. No matter what you do, do not touch your personal savings unless there is no other option. Though you may have to break into your savings, keep some available for difficult times. You will be glad you did.
Prior to filing for bankruptcy, discover which assets cannot be seized. The Bankruptcy Code lists assets considered exempt from being affected by bankruptcy. Many belongings may become eligible for repossession or seizure after filing for bankruptcy. If you neglect this important step, you might be blindsided when a possession that is important to you is taken to repay creditors.
Do not despair, as it’s not the end of the world. You can often have property returned to you. Autos, jewelry and even electronics that have been repossessed, could be returned. If it has been 90 days or less between the repossession of your property and your filing, you might be able to get your property back. Consult with a lawyer that can walk you through the filing process.
Don’t pay for an attorney consultation and ask him or her anything you want to know. Seek free consultations from a handful of lawyers, before deciding which one to hire. Only make your decision if all your questions and concerns are adequately addressed. It’s isn’t necessary to make a choice right away. Take your time, and schedule consultations with more than one lawyer.
Be aware of recent changes, if any, in the bankruptcy code. This area of law is in constant flux and it is imperative that you know where the law stands at the time you file for your bankruptcy. To know what these changes are, go to your state’s website or contact the legislative offices.
Consider other alternatives before filing for bankruptcy. You could find relief from small debts by using a consumer credit counselor. You could even negotiate for lower payments. However, you should ensure that you always obtain a written record of all the changes to your debt that you’ve agreed to.
Most bankruptcy lawyers offer a free consultation, so meet with several before you decide on one. Ensure that you have a meeting with a real lawyer instead of an assistant, since they can provide the best advice. By shopping lawyers, you will be more likely to find one that makes you comfortable about the process.
Safeguard your most valuable asset–your home. Bankruptcy filings don’t necessarily have to end in the loss of your home. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. Otherwise, look into the homestead exemption which may allow you to stay in your home if you meet financial threshold requirements.
Clearly, filing for bankruptcy takes a great deal of thought and consideration in advance. If you feel that it is your best option for your current financial state, you should contact an experienced bankruptcy lawyer who can advise you in this turning point in your life.