How To Decide When To File Personal Bankrupcy
Posted at by PConran on category BankruptcyJust thinking about bankruptcy is a scary thought for many people. The thought of losing their homes and cars and being overcome by debt is something they rightfully fear. If these are issues that plague you, you will find this article full of helpful advice.
Always be honest and forthright when it comes to your bankruptcy petition. Remember that if you hide your valuable assets or income from your bankruptcy trustee, you may risk a number of penalties and complications. Among these is the possibility that you could be blocked from ever filing again.
The best way to build your credit up after a bankruptcy is making all your payments on time. If you find that to be the situation, consider requesting secured cards. This demonstrates to creditors that you are making a good faith effort to repair your credit. In time, you might be granted unsecured credit again.
Use a personally recommended bankruptcy attorney instead of one found through the Internet or phone books. There are lots of unsavory companies and lawyers out there who prey on people who are in desperate straits. It is up to you to find someone that is trustworthy and can make the process go smoothly.
You should not have to pay for an initial legal consultation, and such meetings are great opportunities to ask lots of questions. Most lawyers offer free consultations, so talk to a few before making your decision. The lawyer who properly answers your questions is the one you should hire. After your consultation, take your time to make your decision. If you’re unsure, don’t hesitate to talk to multiple bankruptcy lawyers.
Before making the decision to file for bankruptcy, be sure you have considered alternative options. For example, you want to look into credit counseling. This is the best option for 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.
Learn the differences between Chapter 7 and Chapter 13 bankruptcies. Should you choose Chapter 7, your total debt load will be erased. Any ties you have concerning creditors will definitely be dissolved. If however you enter Chapter 13, you will go into a five year repayment program prior to your debts dissolving entirely. 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.
Most bankruptcy lawyers give free consultation, so try to meet with these types of lawyers before deciding on hiring one. By law, paralegals and assistants can not give legal advice, so be sure that you are meeting with an actual attorney. Considering several different lawyers can help find someone to trust.
It is important to be upfront with all your financial information when filing for bankruptcy. If you forget any items, your filing could be rejected. Even if you believe that certain financial information is inconsequential, do not avoid including it in your documentation. Include any income from jobs that you do on the side or assets, such as property and vehicles.
It is not unusual for people to be worried about bankruptcy; the process is nerve-wracking. You might have been worried about it before, but this article can put those fears to rest. Take the info shared here and apply it to your situation where needed so that you can move forward to a brighter future again.