Personal Bankruptcy: Do I Have Any Choices?
Posted at by PConran on category BankruptcyIf you are considering filing for bankruptcy, your life probably hasn’t been so great recently, but that doesn’t mean things can’t improve once you file. The point of bankruptcy is to have a clean slate and a fresh start. Keep reading for how you can make bankruptcy a second chance instead of financial doom.
Make sure that you understand everything you can about personal bankruptcy by visiting websites that offer information. The United States DoJ along with other private and nonprofit organizations all have insightful knowledge. The more you know, you can be confident you are choosing the right thing and that you are taking the right road to make sure your bankruptcy proceeds as easily as possible.
Prior to filing for bankruptcy, be sure you have investigated all of your alternatives. Avail yourself of other options, including consumer credit counseling, if they are appropriate for your situation. Bankruptcy permanently affects your credit, so avoid filing until you have exhausted all of your other options.
Rather than checking online, try to get recommendations from friends or family about a suitable bankruptcy attorney. There are way too many people ready to take advantage of financially-strapped individuals, so you must ascertain that your attorney can be trusted.
Don’t pay for an attorney consultation and ask him or her anything you want to know. Most lawyers provide a consultation for free, so consult with many of them before picking which one you want to hire. Choose an attorney who is experienced, educated and well-versed in bankruptcy laws. Take your time before you decide to file after you meet with your lawyer. You have lots of time for consulting with other lawyers.
If you are considering filing for bankruptcy you definitely need to hire an attorney. Filing for bankruptcy is a complicated procedure, and you may not be aware of all the ins and outs. When you engage the services of a bankruptcy lawyer, you can be assured of getting the help your need to proceed correctly.
Be certain that you can differentiate between Chapter 7 and Chapter 13 bankruptcy. If you file using Chapter 7 bankruptcy, you will get all your debts eliminated. You will no longer be liable for any money that you owe to your creditors. If however you enter Chapter 13, you will go into a five year repayment program prior to your debts dissolving entirely. You need to determine which type of bankruptcy is right for you given your unique financial situation.
Safeguard your most valuable asset–your home. Bankruptcy filings do not necessarily mean that you have to lose your house. Depending on whether the value of your home has decreased or if you have a second mortgage on the home, you may end up keeping it. You should also examine the possibility of taking a homestead exemption. This could apply if your income falls below the financial threshold.
As mentioned earlier, the events that drive anyone to declaring financial bankruptcy are not a happy story. Yet after bankruptcy, you can be happy again. As a matter of fact, if you put the ideas in this article into play, you can let bankruptcy proceedings a pivotal moment in your existence towards a brighter future.