Surviving Your Bankruptcy: Helpful Tips And Advice
Posted at by PConran on category BankruptcyWhile filing for bankruptcy may be a hard decision to make, for some it is a necessity. If you are thinking about filing for bankruptcy, it’s best to be armed with as much information as possible. Read this article for some helpful tips from those informed about bankruptcy.
Learn as much as you can about bankruptcy by going to informational websites. The United States Department of Justice and American Bankruptcy Institute are two such places to look. The more knowledge you have, the more you are able to make right decisions and find a new future.
It is essential when going through bankruptcy that all of your income and assets are reported openly and honestly. Resisting the temptation to hide income or valuable assets from the bankruptcy trustee is a smart way to avoid potential complications, penalties, and the possibility of being barred from re-filing in the future.
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. Companies are constantly popping up, claiming to help, yet only seek to profit from your misery. In ensuring that your bankruptcy is as simple as possible, trusting your attorney makes a big difference.
Don’t pay for the consultation with a lawyer who practices bankruptcy law; ask a lot of questions. Most attorneys offer free initial consultations, and you should take advantage of the chance to interview multiple practitioners. Do not make any final decisions until every question you have has been answered. There is no need to offer an immediate hire, so take your time. You can take as much time as you need to meet with different lawyers.
If you are seriously thinking of filing bankruptcy, make sure that you contact an attorney. The topic of bankruptcy is a complicated one and it is important that you know all about it. A personal bankruptcy lawyer will be able to help you and ensure you are doing things the proper way.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. If you file using Chapter 7 bankruptcy, you will get all your debts eliminated. With very few exceptions, the connections between you and your creditors will be severed. But, with Chapter 13, you will be in repayment plan for about 5 years prior to any debts you have being totally dissolved. You need to be aware of the pros and cons of each type of bankruptcy so you can correctly select the best choice for your situation.
Learn what you can about Chapter 13 bankruptcies. Chapter 13 bankruptcy is a good choice for people whose unsecured debts amount to lower than $250,000 and who receive a regular income. This lets you keep any real estate and personal property while you repay all your debts through a consolidation program. This repayment period usually lasts from three to five years. If you make your payments faithfully during that time, any remaining unsecured debt will be eliminated. Keep in mind that missed payments will trigger dismissal of your case.
Investigate other alternatives before resorting to bankruptcy. There are many other options including debt consolidation and making payment plans with your creditors. If a foreclosure is your reason for filing look into your options with your bank first, such as a loan modification. The lender is able to help you in a number of ways, such as reducing interest rates, eliminating late charges, and even lengthening the loan, giving you more time to pay. At the end of the day, creditors want to get paid, and sometimes a debt repayment plan is preferable to dealing with a bankrupt debtor.
Sometimes declaring bankruptcy is simply the only viable option, even though it’s one that nobody wants to take. Now that you’ve come to the end of this piece, you have some ideas about how the process works. If you take time out to learn from the experiences of others, your journey with bankruptcy won’t be so stressful.