Looking For Information About Bankruptcy? Try These Tips!
Posted at by PConran on category BankruptcyThe decision to file for bankruptcy is very serious and should not be taken lightly. Doing your research, partially by reading articles like this one, is an important first step in filing for bankruptcy. It’s important to prepare yourself by learning ahead of time.
Learn the newest bankruptcy laws before filing. If you want to file for bankruptcy successfully, it’s important to review the latest applicable laws. They tend to change frequently. Your state’s website should have the information that you need.
It is wise to meet with several lawyers before making a final decision, take advantage of the free consultations to find one that is a good fit for you. Be certain you talk to the lawyer, himself, instead of a paralegal or assistant; those people aren’t allowed to give legal advice. Taking the time to compare lawyers will ensure that you get a person that you can be yourself around.
Take steps to ensure your home is protected. Filing for bankruptcy does not mean you have to lose your home. Whether you get to keep your home depends on a few things, including its value and whether you have debts like a second mortgage or HELOC. 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.
Thing about filing a Chapter 13 bankruptcy. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. This allows you to keep possession of your real estate and property and repay your debt through a debt plan. The plan is usually for a term of three to five years, and a discharge will be granted at the end of that term. However, if you miss even one payment, the court will dismiss your entire case.
If your paycheck is larger than your debts, avoid filing for bankruptcy. Filing for bankruptcy can really damage your credit in the long run, by staying on your report for up to ten years.
Know the rights that you have as you file for bankruptcy. Don’t take a debt collectors word for it simply because they tell you that you can’t have many or all of your debts erased by bankruptcy. Only a few debts are immune to bankruptcy. Taxes, student loans and child support would be the major ones. If the bill collector is trying to deceive you, then report that company to your local attorney general’s office.
Make sure you know the bankruptcy laws before filing your petition. The code governing personal bankruptcy is a complex area that is subject to much misunderstanding. Small errors could even cause your case to be dismissed. Before you begin bankruptcy proceedings, research as much as you can. The entire process will be much easier when you move forward with awareness.
As you are aware from the previous paragraphs, bankruptcy is not something that just happens. Several steps must be completed, and completed accurately. By following the above advice, you will make fewer mistakes and find yourself better prepared.