Gaining Control Of Your Finances After A Bankruptcy
Posted at by PConran on category BankruptcyIn order to file a bankruptcy claim, you will run into more than a couple of complicated hurdles to jump. All types of bankruptcy exist. The kind that you select depends on your finances and your debt. It’s imperative that you learn everything you can about the process before you even think about filing. Here are a few wise tips to help you in your decision.
When it gets time to think about bankruptcy, avoid using your retirement or savings to pay off the creditors or even make attempts to settle the debt. Leave your retirement accounts untouched unless there is absolutely no other alternative. Though you may need to use a bit of your savings, try hard to maintain some of your reserves so that you have some degree of flexibility going forward.
One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. It is vital that you disclose all information about your assets and income so there are no delays or penalties, such as a court barring you from filing again later in the future.
Look for a bankruptcy lawyer that comes from a personal recommendation instead of someone random on the Internet or in the yellow pages. To handle your bankruptcy, you need a trusted attorney, not a shady one that is out to take your money.
You may end up losing more than you bargained for when you file a bankruptcy claim, so be sure that you know just which assets may be taken before filing. The Bankruptcy Code includes a list of the types of assets that are exempt from the bankruptcy process. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. It is important to know what types of possessions may be taken away before they actually are seized.
Learn the differences between Chapter 7 and Chapter 13 bankruptcies. The Chapter 7 variety can help you eliminate your debts almost entirely. Your responsibilities to your creditors will be satisfied. With a chapter 13 bankruptcy, a 60 month period of time will be established in which you will repay the as much of your debt as possible. Following the 60 month period of time, the remainder of your debt will be excused. To make the wisest choice, you will need to understand the consequences of each of these two options.
Before picking a bankruptcy lawyer, speak with more than one, since most offer a consultation for free. Meet with the actual lawyer, not a paralegal or assistant, as they’re not allowed to give out legal advice. Hiring a lawyer could help you become comfortable with the legal things that you will encounter.
Be sure your home is well protected. Losing your home is thought of as common in bankruptcy cases, but it is by no means inevitable. Depending on whether the value of your home has decreased or if you have a second mortgage on the home, you may end up keeping it. If you meet certain criteria, you may be able to retain ownership of your home even after filing for bankruptcy.
Learn how Chapter 7 bankruptcy and Chapter 13 bankruptcy differ from each other. Take the time to learn about them extensively, and then figure out which one will be best for your particular situation. Before making any decisions, discuss the information you have learned with your lawyer.
Clearly, filing for bankruptcy takes a great deal of thought and consideration in advance. If it seems to make sense in light of your financial problems, you should seek an experienced bankruptcy attorney who can guide you toward a fresh, clean start!