Surviving Your Bankruptcy: Helpful Tips And Advice
Posted at by PConran on category BankruptcyDeclaring bankruptcy is anything but easy. There are different chapters of bankruptcy, and you may qualify for one or more. Research into what will best suit you is important before you consider filing. This article is a great place to start learning this information.
If you are in a position where you are unable to pay your debts, bankruptcy may be the only option for you. If you’re in this position, it is a good thing to familiarize yourself with the laws that apply in your area. Most states differ in their laws governing bankruptcy. In some areas, your residence may be completely exempt, but in others, it will not be. It is important to be cognizant of the laws in your state before filing for bankruptcy.
Do not hesitate to remind your lawyer of any details regarding your case. Never assume that they can remember all details without reminders. Be as open as you can be to make sure your bankruptcy goes as well as possible.
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. Certain assets, as listed in the local bankruptcy regulations, are immune from seizure during bankruptcy. Be well prepared for bankruptcy by reviewing this list. It will tell you whether are not the things you value most are subject to seizure. If you don’t read this list, there is a chance that you might get nasty surprises when they take your things away.
Be as honest as you possibly can when filing for bankruptcy; hiding liabilities or assets will only hurt you in the long run. Penalties may include fines, imprisonment or denial of the filing. Telling the truth will allow you reach a solution that is feasible, given your current situation.
Avoid paying for a consultation with the bankruptcy attorney, but do ask many questions. Most attorneys offer a free consultation which you should take advantage of. Meet with a few before finalizing your plans. Therefore consult with different lawyers and get a feel for them, then decide which one suits your needs You need not decide right away. After your consultations, do some additional research on each attorney you consider qualified for the job.
See if there is an alternative you can use before declaring bankruptcy. There are numerous programs out there that may assist you with your debt, like a credit counseling program, a nonprofit group, government assistance, etc. You might also be able to negotiate lower payments yourself, but make sure that you get written records of any debt modifications to which you agree.
The two main kinds of bankruptcy are Chapter 7 and Chapter 13. Make sure you understand them so you know what is best for you. Chapter 7, for example, will wipe away every one of your outstanding debts. With very few exceptions, the connections between you and your creditors will be severed. But, with Chapter 13, you will be in repayment plan for about 5 years prior to any debts you have being totally dissolved. You must know about the different bankruptcy types, and how each can affect you.
You are now aware that filing for bankruptcy is a choice that is one you should think through thoroughly prior to committing. If you decide bankruptcy is right for you, take the proper precautions. This could be a new beginning and a clean slate for you.