Advice On And Options For Declaring Personal Bankruptcy
Posted at by PConran on category BankruptcyMany people are quick to judge others badly when they have to declare bankruptcy, yet they are also as quick to change their mind if they are suddenly in that boat. Often filing for personal bankruptcy happens as the direct result of changing conditions (e.g. the dissolution of a marriage or the loss of a job). Whatever your reasons for filing bankruptcy, the article below can help.
It is simple math; when you owe more than you are able to pay off, a bankruptcy is the likely solution. If this sounds familiar, you should read up on the bankruptcy laws in your state. The laws governing bankruptcy vary from state to state. For instance, in some states you can keep your home and car, while other states prohibit this. You should be aware of local bankruptcy laws before filing.
Never lie about anything in your bankruptcy petition. Withholding or lying about certain information can seriously worsen your financial situation. It could lead to being unable to file for bankruptcy or even legal trouble.
Prior to filing your bankruptcy petition, go over the list of assets that cannot be seized by creditors. The federal statutes covering bankruptcy can tell you exactly which assets are exempt from forfeiture to pay off creditors. You need to read the exemptions for your state, so you know what property you can protect. It is important to know what types of possessions may be taken away before they actually are seized.
Keep at it! You can often have property returned to you. Autos, jewelry and even electronics that have been repossessed, could be returned. You should be able to get your possessions back if they have been taken away from you within 90 days before you filed for bankruptcy. Consult with a lawyer that can walk you through the filing process.
If you’re filing for bankruptcy soon, be sure you are going to hire a lawyer. Bankruptcy is complicated, and having someone to help you navigate the process is crucial. A qualified bankruptcy attorney will guide you through the steps and help you do everything properly.
See if there is an alternative you can use before declaring bankruptcy. For example, there are credit counseling services that can help you to deal with smaller amounts of debt. 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.
Be sure you know what the difference between Chapter 13 and Chapter 7 bankruptcy is. Do some research about these options so you can choose the best one. If something doesn’t make sense to you, go over it with your lawyer prior to choosing which one to file.
While going through this process, spend more time with friends and family. The process for bankruptcy can be brutal. It is often overwhelming, and not quick. Some people may feel embarrassed or feel their self-esteem has taken a beating from it. Lots of people think they need to hide from everyone until this is all done. Pulling away from people who care for you will not help the situation, and can cause your negative feelings to intensify. It’s imperative that you spend as much time with loved ones as you can, even in the midst of your financial dilemma.
If you have tried everything you can think of to resolve your financial difficulties, filing for personal bankruptcy may be your only option. Try to relax and avoid getting stressed out about your bankruptcy. Important information can be ascertained simply by reading on.