Techniques For Getting The Most Out Of Filing Bankruptcy
Posted at by PConran on category BankruptcyDeclaring bankruptcy is anything but easy. You need to know what type of bankruptcy you should file for based on your current finances and the type of debt you have. It’s imperative that you learn everything you can about the process before you even think about filing. This information may point you in the right direction.
Make sure you are always providing honest documentation whenever you have to file for personal bankruptcy. You must avoid the temptation to conceal any valuables, money or other assets from the courts. If they find that you have lied, you may be faced with fines, penalties or the inability to file in the future.
If possible obtain a personal recommendation for a bankruptcy lawyer instead of randomly choosing one. You want your bankruptcy to go smoothly, and the Internet is rife with fly-by-night companies whose only goal is to prey upon the financially desperate.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Should you choose Chapter 7, your total debt load will be erased. Your former ties with creditors will cease to exist. Bankruptcy under the rules of Chapter 13, on the other hand, require you to work out a payment arrangement to pay back the agreed upon amounts. It is important that you understand the differences between the different types of bankruptcy, so that you can decide which option is best for you.
Take advantage of the opportunity to consult with a number of bankruptcy lawyers who offer the first visit at no charge. Meet with the actual lawyer, not a paralegal or assistant, as they’re not allowed to give out legal advice. Be sure to check out a number of lawyers so that you will find one who is just right for you.
Do not file for bankruptcy if your income is greater than your bills. Bankruptcy may appear like the easier way to avoid paying your old bills, but it is a huge mark on your credit score and remains there for up to 10 years.
Find ways to relax while you go through the process of filing for bankruptcy. Lots of debtors are stressed out when they’ve come to filing time. Stress easily leads to depression, if you are not maintaining control of your emotions. Remember that your situation is going to improve after you file for bankruptcy.
Before you decide to file for Chapter 7 bankruptcy, you should consider what your bankruptcy might have on others, as your family and friends may be affected. Debts that involved a co-signer can be discharged in Chapter 7 bankruptcy. So, in short, if you file bankruptcy, but they do not, they will be held completely responsible for your joint actions.
If you are filing for bankruptcy, it is imperative that you have a good understanding of your rights. Collectors may try to convince you that your debt can’t be discharged. There are only three main classes of debts that are non-dischargable: taxes, child support and student loans. If a collector tries to convince you that some other type of debt, such as a credit card, is non-discharagable, get the company’s information and send a report to your state attorney general’s office.
If you are going to file for bankruptcy make sure you are prompt. It is a mistake to ignore your financial troubles, hoping they will go away on their own. Debts can get out of control fast. If you’re not taking care of these debts, you may be getting into trouble like wage garnishment. Once you realize that the debt you have is too much for you to handle, start thinking about talking to a bankruptcy attorney, they can guide you throughout the entire process.
Make sure you are completely aware of bankruptcy laws before you consider filing. You should not transfer your assets to anyone in the year preceding your bankruptcy filing. Also, it is illegal to load up your credit cards with debt right before filing occurs.
Now you know why bankruptcy filing is a type of decision that needs to be carefully thought out before being pursued. If you feel that it is your best option for your current financial state, you should contact an experienced bankruptcy lawyer who can advise you in this turning point in your life.