Things You Must Have In Order Before Filing Bankruptcy
Posted at by PConran on category BankruptcyWhen you’re indebted to people or institutions, it’s only a matter of time before they show up at your door to collect. Sometimes literally. You can stop calls from debt collectors and resolve your financial issues if you consider filing for bankruptcy. Read this article for helpful tips that will get you through this process.
Make sure you’ve exhausted all other options prior to declaring bankruptcy. It is possible to take advantage of other options, like consumer credit counseling. Be certain that bankruptcy is the only option you have before pursuing this course because bankruptcy is always evident on your financial and credit history.
Always be honest when filling out paperwork. You can lose the right to file bankruptcy now or in the future if you try to withhold information about your assets and income. So it is critical that you disclose everything honestly to to avoid that and any other penalties the trustee might impose if he discovered your attempt to hide information from the court.
Try going to a personally recommended bankruptcy lawyer instead of using a phone book or the Internet. 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.
You must be entirely candid when it comes to declaring assets and obligations in your bankruptcy petition. The person you choose to file with needs to know both the good and bad aspects of your finances. Lay everything out on the table so that you and your lawyer can devise a plan to get you out of this mess.
Do some research about laws and legislation before filing. These kinds of laws are constantly changing and it is important that you are aware of these changes, so that you can learn how to properly file for bankruptcy. To learn how the law has changed recently, go online and check your state’s website, or call the state government and ask them.
Most bankruptcy lawyers offer a free consultation, so meet with several before you decide on one. Make sure you meet with a licensed attorney rather than a paralegal or assistant, because it is illegal for these people to give legal advice. Shopping around for a lawyer can help you find someone with whom you feel comfortable.
If you really want to keep your vehicle, speak with your lawyer about possible choices. Filing under Chapter 7 is usually a good way to lower your payments. But, your car has to have been bought at least 910 days before you file. Also, it must come from a high interest loan and you have to have been consistently working.
During a Chapter 13 bankruptcy, you may still be able to get a mortgage or car loan. It is a little more difficult, though. Your trustee must approve any new loans. Draw a budget up and show how you can pay the newer loan payment. It will also be necessary to show why a new purchase needs to be made.
Although bankruptcy can be a valid choice,there are many options to explore before considering it. Also remember that many debt consolidation services are a scam that will get you even deeper into debt. Take what you’ve just learned to heart, and make wise financial decisions going forward.