The Bankruptcy Tips You Need To Know Right Now
Posted at by PConran on category BankruptcyDeciding to file for personal bankruptcy is a major life decision, and should not be jumped into lightly. Read the tips and suggestions in the following article so you know what to expect and just what you should be doing before you make that important decision. Prepare yourself by learning as much as possible beforehand.
Lots of people have to claim bankruptcy when their bills are larger than their income. If this is happening to you, then learn about the laws where you live. Most states differ in their laws governing bankruptcy. Your house is safe in certain states; however, in other states, it isn’t. It is important to understand the laws in your state before filing for bankruptcy.
Make sure you are always providing honest documentation whenever you have to file for personal bankruptcy. Do not hide any income or assets or go on a spending spree before filing for bankruptcy: the court will find out and will not have a positive opinion of you.
Don’t file for bankruptcy until you know what assets of yours can and can’t be seized. The Bankruptcy Code contains a list of various assets that are excluded from 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. It is important to know what types of possessions may be taken away before they actually are seized.
Learn all the latest laws before you file bankruptcy. Bankruptcy laws are in constant flux, so just because you knew the law last year doesn’t mean that the laws will be the same this year. Check the website of your state’s legislation or get in contact with your local office to learn more about these important changes.
Before picking a bankruptcy lawyer, speak with more than one, since most offer a consultation for free. Make sure that you meet with an actual lawyer and not an assistant or paralegal, as these people are not allowed to provide legal advice. It will be important to work with a bankruptcy lawyer that you feel comfortable with; a little comparison shopping will help you find the right one.
Learn the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Investigate the benefits and pitfalls of both. Online resources may be able to provide all the information you need. If anything you see is unclear or doesn’t make sense, go over it again with your attorney before making the final filing decision.
If you are going to be filing for bankruptcy, think about filing Chapter 13. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. The window for Chapter 13 repayments is typically 3-5 years. At the end of this time, any unsecured debt is discharged. Keep in mind that missed payments will trigger dismissal of your case.
Before you file for personal bankruptcy, weigh all of your options. Talk with a bankruptcy lawyer and ask about alternatives, such as debt consolidation or negotiating with creditors. Various loan plans out there can be a lifesaver if you’re facing a foreclosure. These plans allow you a longer pay off period by extending the term of the loan, reducing the rate of interest or forgiving late fees. At the end of the day, creditors want to get paid, and sometimes a debt repayment plan is preferable to dealing with a bankrupt debtor.
Bankruptcy isn’t simple and immediate. By going through the process correctly, the outcome will be further in your favor than it might otherwise have been. If you apply this advice, you are certain to be prepared when bankruptcy rears its ugly head.