Doing Things The Right Way When Declaring Bankruptcy
Posted at by PConran on category BankruptcyYou’ve heard it before and you’ll hear it again–the economy is in rough shape. Even with a depressed economy, jobs are lost despite debts needing to be paid. Debts can lead to bankruptcy, something that is very bad. If you or a loved one is considering bankruptcy, find out what to do about this situation by reading this article.
People generally mostly feel the need to get a bankruptcy filed for when they have more money owed than they can get. If this is your case, you should do some research about bankruptcy laws in your state. Every state is different when it comes to dealing with bankruptcy. Some states protect your home, and others do not. It is important to be cognizant of the laws in your state before filing for bankruptcy.
Be certain to gain a thorough understanding of personal bankruptcy by using online resources. The United States 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 feeling like you are seriously going to have to file for bankruptcy then do not clear out your savings. Avoid touching your retirement accounts whenever possible. Though you may have to break into your savings, keep some available for difficult times. You will be glad you did.
When looking for a lawyer to handle your bankruptcy claim, the best way to go is off of a personal recommendation instead of simply flipping through the phone book. There are so many dime-a-dozen companies out there who make it a practice of preying on financial desperation. You need to make sure your bankruptcy goes smoothly, so find someone you know you can trust.
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. Prior to filing for bankruptcy, it is critical that you go over this list, so that you know if you can expect any of your most valuable possessions to be seized. If you don’t read it, you could have nasty surprises pop up later due to your prized possessions being seized.
Investigate your other alternatives before you decide you have to go with bankruptcy. Sometimes consolidating your existing debts can make them more manageable. Filling for bankruptcy is a lengthy, stressful process. Credit will be much harder for you to come by after you file for bankruptcy. Therefore, before you file for bankruptcy you need to consider all of your alternatives.
Once the initial filing period is over, ensure that you are getting out and enjoying life. So many people become stressed when they file. Make sure you take care of your part and let your attorney do the rest. Once your petition is in the hands of the judge, all you can do is wait.
Carefully consider filing for bankruptcy on loans that have a co-signer, especially if that co-signer is a business associate, close friend or relative. Debts that involved a co-signer can be discharged in Chapter 7 bankruptcy. But, bear in mind, the debt now becomes the sole responsibility of your co-debtor.
You can take out a mortgage or car loan while filing Chapter 13 bankruptcy. There will, however, be obstacles. You will have to see your trustee and the approval for this new loan. Create a budget and prove that you will be able to afford it. The odds are also good that you will be asked exactly why you’re purchasing a new item. Make sure you have a good reason.
The economy is showing signs of recovery, but unemployment and underemployment are still high. Even if you do not have a steady paycheck, you still have options to help you avoid filing bankruptcy. Hopefully, this article has given you information that you can use to avoid having to file for bankruptcy. May good fortune be with you.