Are You Filing For Personal Bankruptcy? Try These Tips!
Posted at by PConran on category BankruptcyWhen in debt and filing a claim, don’t worry anymore. With the Internet there is plenty of advice these days on ways to avoid disastrous situations such as bankruptcy. Read this article and learn how you may prevent bankruptcy.
Exhaust every other option before making the decision to file for personal bankruptcy. Other available options include consumer credit counseling. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
As bankruptcy appears on the horizon, don’t take your savings or retirement accounts to try to pay off all your bills. Do not tap retirement accounts unless there is no other alternative. While you may have to use a part of your savings, never completely wipe it out which would only leave you in worse financial shape in the future.
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. As long as you are not hiding income or assets from the courts, you can ensure that there are no difficulties with your petition. This will save you from having your petition dismissed and your debts dropped from re-filing.
You might experience trouble with getting unsecured credit after filing for bankruptcy. This being the case, look at secured card options. When you do this, it shows your determination to fix your credit history. After some time passes they may be willing to offer you unsecured credit.
Prior to filing for bankruptcy, determine which assets, if any, are exempt from being seized. Check the bankruptcy laws in your state to find out if certain items are excluded from your bankruptcy filing. It is important that you read this list before filing for bankruptcy, so that can find out whether or not your most prized possessions will be seized. If you aren’t aware of this, you could lose some assets that you value.
Don’t try to hide anything if you are filing for bankruptcy, as this will hurt you in the long run. All of your financial information, be it positive or negative, must be disclosed to those in charge of filing your case. They need to know it all. Being honest is both the right thing to do and, moreover, it is required by law.
Stay positive. Bankruptcy might help you get back things you thought you’d lost and had repossessed, such as electronics, vehicles and jewelry. You may be able to recover repossessed property if the repossession occurred fewer than 90 days ago. Talk with an attorney who can guide you through the process of filing a petition.
Before declaring bankruptcy, be sure you’ve weighed other options. 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 can also talk to creditors and ask them to lower payments, but be sure to get any debt agreements in writing.
Always protect your house. You do not have to lose your home in the process of a bankruptcy. Whether you get to keep your home depends on a few things, including its value and whether you have debts like a second mortgage or HELOC. You are still going to want to check into homestead exemption either way just in case.
Bankruptcy is a difficult and stressful process, and you will need all the help you can get. Make sure that you hire an experience lawyer to get your bankruptcy done properly. Be sure that you consider more than the expense when you choose a lawyer. Think about quality rather than cost when hiring an attorney. Make sure that you verify their reputation through various sources including people in your circle of friends and the BBB. If you wish, you can attend a bankruptcy hearing and witness your attorney in action.
Proper planning can put you in the right place. Any steps you take that give you additional time to address your debts are good ones. Just be certain you are taking the right steps to prevent yourself from filing bankruptcy. At this point, you can begin making plans and preparing yourself for your future.