Understanding What To Expect When You’re Going Through A Bankruptcy
Posted at by PConran on category BankruptcyBankruptcy is a decision that should be considered carefully before undertaking. Digest the information contained herein, so that you are aware of what you can expect and you know what actions to take prior to making that critical decision. Educate yourself as much as possible prior to taking action.
It’s important that you understand what bankruptcy is and how it will change your life before you attempt to file a claim. The United States The Department of Justice is just one resource of information available to you. The more knowledge you have, the more you are able to make right decisions and find a new future.
Always remind your lawyer of specifics that are important to your case. Chances are that you may have forgotten to tell them about certain specifics that may be important to your filing. Ultimately, this is your bankruptcy and your financial future, so never hesitate to advocate on your behalf.
Before you decide to file bankruptcy proceedings, determine which assets will be safe. You can find a listing of the asset types that are excluded from bankruptcy in the Bankruptcy Code. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. If you are not aware of the rules, you could be setting yourself up for a lot of stress when your most important possessions are taken in the bankruptcy.
You should be able to meet with a specialized lawyer for free to ask your questions. When you arrive at a consultation ask plenty of questions. You should also seek free consultations from several attorneys prior to choosing one. Don’t hire an attorney who fails to address all your concerns and questions. There is no need to offer an immediate hire, so take your time. Take the time to meet with a number of attorneys.
Protect your home. Filing for bankruptcy doesn’t automatically involve losing your home. Check your home’s current value to see if it has gained equity and get your first and second mortgage papers together. There are also homestead exemptions which, depending on your other finances, may allow to remain in your home.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Take the time to find out about each one online, and look at the advantages and disadvantages of each. If anything you see is unclear or doesn’t make sense, go over it again with your attorney before making the final filing decision.
Remember to only file for bankruptcy if you need to. Sometimes consolidating your existing debts can make them more manageable. The bankruptcy process takes forever to finish and is very nerve-wracking. Having a bankruptcy on your record will hinder your ability to get credit in the future. This is why it is crucial that you explore your other debt relief options first.
If you have filed for Chapter 13 bankruptcy, you will still be allowed to apply for and receive a mortgage or car loan. It is just tougher. Your trustee must approve any new loans. Draw up a budget, demonstrating that you can afford the new loan payment. You should also be prepared to explain why you need to purchase the item.
Bankruptcy can cause anxiety and a host of other physical and emotional issues. To have a reliable and trustworthy guide through the process, find a highly qualified attorney. Do not choose your attorney based solely on price. Hire the best attorney you can afford, not the one who charges the most. Get referrals from people you know who have been in your situation, check with the better business bureau and use free consultations to interview several people. When looking at bankruptcy attorneys, consider sitting in on one of their court hearings to find out how they handle the case.
Filing for personal bankruptcy is a decision you need to make after doing some research. Several steps must be completed, and completed accurately. Hopefully, with what you learned today, you learned what it means to file for bankruptcy and you can avoid being in this situation in the future.