Expert Advice About Declaring A Personal Bankruptcy

Posted at by PConran on category Bankruptcy

Bankruptcy is both a stressor and a relief. On one hand, having people go through all of your personal financial information can be formidable. However, once the bankruptcy gets discharged, you can begin to create a better financial situation while all those harassing bill collector phone calls stop. Keep reading for a few smart suggestions for making bankruptcy a smoother process.

Be certain you are making the right choice before you file for bankruptcy. You have better options. For example, you could try credit counseling. Be sure to consider all options before filing for personal bankruptcy, as this will take a large toll on your credit score for the next ten years.

It should go without saying, but refrain from lying in your bankruptcy filings. Do not try to shield some assets or income from your creditors. This can get you in serious trouble and prevent your bankruptcy petition altogether.

Ask those you know if they have an attorney to recommend, instead of finding one on the Internet or in the phone book. Some companies just want to take advantage of you, so it is important that you have help from someone you trust.

Be brutally honest when you file for bankruptcy, as hiding assets or liabilities, will only come back to haunt you. Good or bad, you must tell your bankruptcy attorney everything about your financial situation. Don’t hold anything back and formulate a smart strategy to deal with the reality you are facing.

Before pulling the trigger on bankruptcy, be sure that other solutions aren’t more appropriate for your case. For example, there are credit counseling services that can help you to deal with smaller amounts of debt. You might also be able to negotiate lower payments yourself, but make sure that you get written records of any debt modifications to which you agree.

Before filing for bankruptcy, determine whether Chapter 13 or Chapter 7 is appropriate for your financial situation. Chapter 7 involves the elimination of all of your debt. Your former ties with creditors will cease to exist. Bankruptcy under the rules of Chapter 13, on the other hand, require you to work out a payment arrangement to pay back the agreed upon amounts. To make the wisest choice, you will need to understand the consequences of each of these two options.

Always protect your house. Bankruptcy filings don’t necessarily have to end in the loss of your home. You could keep your home; it depends on your home’s value or if a second mortgage is on your home. You should also examine the possibility of taking a homestead exemption. This could apply if your income falls below the financial threshold.

Before you file for bankruptcy, make sure you absolutely need to. You might be better off consolidating your debt or availing yourself of some other remedy. The bankruptcy process takes forever to finish and is very nerve-wracking. Your future credit will be affected by these actions. This is why it is crucial that you explore your other debt relief options first.

Find ways to relax while you go through the process of filing for bankruptcy. It’s not uncommon to be overwhelmed by the filing process. Depression can ensue from the stress if action isn’t taken. Life will surely get better after you finish this process.

When it comes to filing for personal bankruptcy, there are good things and bad things. Remember that whatever reason you have for taking this step, education is your best weapon during the process. The advice you have been provided with has probably helped you better understand bankruptcy. As long as you implement these tips how you read them, you should be able to make much more sense of the process.

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