Don’t Be In The Dark About Bankruptcy
Posted at by PConran on category BankruptcyBeing faced with the decision to file for bankruptcy can put you under a lot of stress. When you are dealing with financial stress, you come to the realization there aren’t many options. Although, this situation should not get you down because there are items you can still get like a home loan or car, continue on and learn how.
It’s important that you understand what bankruptcy is and how it will change your life before you attempt to file a claim. Many sites, including the U.S. DOJ, along with a number of other bankruptcy institutes and attorneys specializing in bankruptcy can give you invaluable information. You need to spend some time gathering valuable information so you can file your bankruptcy with confidence.
Ask yourself if filing for bankruptcy is truly your best option. You can find services like counseling for credit that consumers can use. Your credit record will be harmed by a bankruptcy filing, and therefore prior to making such a decision, it is wise to investigate other options in order to minimize the damage you suffer.
Look for a bankruptcy lawyer that comes from a personal recommendation instead of someone random on the Internet or in the yellow pages. You want your bankruptcy to go smoothly, and the Internet is rife with fly-by-night companies whose only goal is to prey upon the financially desperate.
No good will come of trying to conceal your assets or your liabilities in the bankruptcy process; you want to be scrupulously honest when you declare bankruptcy. It is necessary to be open regarding both the positive and negative aspects of your financial life. Do not leave anything out and come up with smart plan to manage the situation you are dealing with.
Be sure you know how Chapter 7 and Chapter 13 differ. If you file for Chapter 7 bankruptcy, all of your debts will be eliminated. All of your financial ties to the people you owe money to will disappear. With a Chapter 13 bankruptcy, you will have to make payments for 5 years before the debts are forgiven. When choosing the type of personal bankruptcy that is correct for you, it is very important that you know the differences.
Take advantage of free consultations with lawyers and the ability to sift through and find the right one. Just be sure that the person you speak with really is the lawyer, rather than a paralegal, since they cannot legally give advice. Be sure to check out a number of lawyers so that you will find one who is just right for you.
Make sure your home is safe. Filing for bankruptcy will not always result in losing your home. You can still keep your home, it just depends on your specific situation and the value of your home. It can be worthwhile to understand the homestead exemption law to see if you qualify to keep living in your home under the financial threshold requirements.
Know and understand the difference between filing for Chapter 7 bankruptcy versus Chapter 13 bankruptcy. Investigate the benefits and pitfalls of both. Online resources may be able to provide all the information you need. If you don’t understand the information you researched, consult with your attorney about the details before you decide which type of bankruptcy you want to file.
Make sure that you really need to file for bankruptcy. Maybe you can just consolidate debt to make it simpler to deal with. Filling for bankruptcy is a lengthy, stressful process. In addition to the stress associated with bankruptcy, you will also have to deal with severely restricted credit in the future. This is why you must make sure bankruptcy is your last resort.
In time you will leave the effects of bankruptcy behind you and resume your normal life. If you don’t spend frivolously and repay lenders faithfully, lenders will be more willing to lend to you in the future. Eventually, you will be able to brush every bit of that dirt off of your shoulders and once again be able to live a normal, credit-driven life if you so choose.