Bankruptcy And You – Important Things You Need To Know
Posted at by PConran on category BankruptcyWith the state of the economy, job market, and stock market, bankruptcy has become more and more common. If you are considering bankruptcy, you are not alone. Before filing for personal bankruptcy, take some time to understand the entire process and applicable laws so that you can make wise decisions. The following article will get you up to speed on all things concerning bankruptcy.
Ask yourself if filing for bankruptcy is the right thing to do. Avail yourself of other options, including consumer credit counseling, if they are appropriate for your situation. Be sure to consider all options before filing for personal bankruptcy, as this will take a large toll on your credit score for the next ten years.
Do not be afraid to remind your attorney of important specifics of your case. Never assume that they can remember all details without reminders. This is your future in their hands, so don’t be scared to mention it.
Do not attempt to conceal any assets when filing for bankruptcy because you may be penalized when they are discovered. Whomever you plan to use should know a lot about the finances that you have, both the good and the bad. Do not leave anything out and come up with smart plan to manage the situation you are dealing with.
If you are considering filing for bankruptcy you definitely need to hire an attorney. Filing for bankruptcy is a complicated procedure, and you may not be aware of all the ins and outs. A lawyer that specializes in bankruptcy can make sure you are following the correct procedures in your filing.
Before declaring bankruptcy, ensure that all other options have been considered. One example would be that a consumer credit program for counseling if you have small debts. You should also try negotiating a payment plan with your creditors; make sure you get a written agreement of the new payment plans.
You need to educate yourself on the differences between Chapter 7 and Chapter 13. Chapter 7 eliminates all debts. All of your financial ties to the people you owe money to will disappear. Chapter 13 bankruptcy though will make you work out a payment plan that takes 60 months to work with until the debts go away. It is worth while to take your time to research both types of bankruptcy to decide which option works best for you, and your financial situation.
Remember to only file for bankruptcy if you need to. Many times a consolidation loan will ease your financial struggles. It is not a quick and easy process to file for bankruptcy. Your credit will be impacted for many years. Therefore, you need to be sure that you really have no other option than to file for bankruptcy.
Spend time with loved ones. The whole process of filing for bankruptcy is hard. It is often overwhelming, and not quick. Some people may feel embarrassed or feel their self-esteem has taken a beating from it. A lot of folks decide to hide themselves from the world around them until the end of the process. Washing yourself in self-pity will only make the situation worse and can leave you feeling very depressed. It’s crucial to spend time with loved ones despite your present financial situation.
If you are worried about your car being repossessed, consult your attorney about trying to get the monthly payment lowered. In many cases, Chapter 7 bankruptcy can lower your payments. The car loan must have been initiated prior to 910 days before your petition. It must carry a loan with high interest. You should also have a steady history of work.
Many people file for bankruptcy every year, mainly because the economy is bad for everyone. Use the tips you just read to make good decisions and remain in control of your financial situation.