Personal Bankruptcy Tips You Must Not Ignore
Posted at by PConran on category BankruptcyMost people do not think they will ever need to consider filing for bankruptcy. Sometimes it’s the only way out of a nasty financial mess. If you are approaching a bankruptcy situation, reviewing the advice presented below may help you understand what happens next.
Don’t look at bankruptcy as a first step. Look at all the other options you may have first. You have other options available like consumer credit counselling services. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. Do not try to shield some assets or income from your creditors. This can get you in serious trouble and prevent your bankruptcy petition altogether.
After filing for bankruptcy, you could have trouble acquiring unsecured credit. If so, apply for a secured credit card. If you pay what you owe back promptly at all times, you can show that you are taking steps to be responsible about your payments and credit rating. If you do well with a secured card and make strides to repair your credit, you will ultimately be able to receive an unsecured card.
Determine which of assets are safe from seizure and which are not before filing for personal bankruptcy. The Bankruptcy Code provides a listing of the various asset types that are not included in the bankruptcy process. Be sure that you study this list. Make yourself aware of any assets you have that could be seized. If you neglect this important step, you might be blindsided when a possession that is important to you is taken to repay creditors.
Be honest when filing for bankruptcy, because hiding liabilities or assets can only cause trouble to you. Your attorney and trustee should be privy to all information about your finances. Do not leave anything out and come up with smart plan to manage the situation you are dealing with.
Familiarize yourself with the bankruptcy code before you file. Bankruptcy law has changed substantially in recent years, and therefore you must understand how such changes may affect your situation. To stay up-to-date on these laws, check out your state’s government website.
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. 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. Hiring a lawyer could help you become comfortable with the legal things that you will encounter.
Protect your home. You don’t have to lose your home just because you are filing for bankruptcy. You might be able to keep your home, for instance, if you have two mortgages or if your home has lost its value. Another option is the homestead exemption that has certain income and financial requirements, but may also allow you to keep your home.
There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. There is a wealth of information online about each type of bankruptcy and their respective pluses and minuses. If something doesn’t make sense to you, go over it with your lawyer prior to choosing which one to file.
You should get some advice on bankruptcy if you decide you to file. The process will be a lot easier if you have the right information. Don’t forget to implement the tips and tactics you have read above in order to help you when filing a bankruptcy claim.