Professional Advice For Dealing With Personal Bankruptcy
Posted at by PConran on category BankruptcyHas your financial situation made you feel bankruptcy is is your only option? Do not feel as if you are on your own. So many people around the world have found bankruptcy to be the only option in getting out of their financial hardships. This article will give you helpful tips to make sure your bankruptcy goes smoothly.
Find out what you exemptions are prior to filing bankruptcy. The Bankruptcy Code lists assets considered exempt from being affected by bankruptcy. Make sure that you carefully look over this list prior to filing to discover if your valuable assets will be seized. If you aren’t aware of this, you could lose some assets that you value.
If you aren’t totally honest about your assets when filing a bankruptcy petition, you could get into serious trouble. Whoever provides your legal consultation must be privy to all of your financial information. Divulge all of your information so that you and your lawyer can devise the best strategy for dealing with your situation.
A free consultation is standard for bankruptcy attorneys, so shop around before settling on one. Be certain to speak with an attorney, not their paralegal or law clerk, since they cannot give legal advice. Searching for the best lawyer will help you located the comfort you need during this time.
Chapter 13 bankruptcy might be a good option, so don’t overlook it. If your source of income is regular and your unsecured debt is less than a quarter million, Chapter 13 bankruptcy is something you are able to file for. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. Expect to make payments for up to 5 years before your unsecured debts are discharged. Remember that if you even miss one payment that’s due under this plan, the court could dismiss the whole case.
If you are worried about your car being repossessed, consult your attorney about trying to get the monthly payment lowered. Most of the time Chapter 7 bankruptcy will allow your payments to be lowered. It is necessary for you to have bought your car prior to the 910 days preceding your filing, your loan must carry a high rate of interest and you must be employed in order to get such a modification, however.
It is still possible to get a mortgage or car loan, even if you are filing for Chapter 13 bankruptcy. This is a lot harder. You will need to secure the trustee’s approval for any new debt obligation. When you meet with your trustee or financial adviser, make sure that you come up with a sound budget proposal. You also have to prepare yourself to explain the reasons you need to buy the item.
It is in your best interest to be abreast of your rights in petitions for bankruptcy. You might hear from your creditors that your debts cannot be canceled through bankruptcy. Few debts exist that are not covered by bankruptcy, such as student loans or child support. If the debt collector tries to tell you that your debts, which do not fall into those categories, cannot be bankrupted, take a note of it, look up the debt type, and report them to your state’s attorney general office.
As previously mentioned, you’re not alone in the world when it comes to filing for bankruptcy. But with the benefit of the information you have here, you have a head start on your journey. The tips in the article above will help you get through your bankruptcy.