Bankruptcy: Is It The Right Answer For You?
Posted at by PConran on category BankruptcyFiling for bankruptcy is a decision that shouldn’t be undertaken without a lot of deliberation. Do not file unless you fully understand the consequences and implications. The advice in this article will get you off to a good start. Just make sure you do enough research so that you are more prepared for any future obstacles.
Don’t hide assets or liabilities when filing for bankruptcy. Whomever you plan to use should know a lot about the finances that you have, both the good and the bad. Being honest is both the right thing to do and, moreover, it is required by law.
Don’t throw in the towel. When you file for bankruptcy you may be allowed to recover property like your car, electronics or jewelry that might have been repossessed. If the items were repossessed less than three months prior to your filing date, you may be able to recover them. Interview and research attorneys before choosing one to help you with your bankruptcy.
You should be able to meet with a specialized lawyer for free to ask your questions. Nearly all attorneys offer free initial consultations, so you should be able to meet with a few before you make a final hiring decision. Choose to file only if your lawyer has convinced you that this is the best decision. It’s isn’t necessary to make a choice right away. You could even go to different lawyers for advice.
There are two types of bankruptcy filing, Chapter 7 and Chapter 13 so make sure you know the differences. If you file using Chapter 7 bankruptcy, you will get all your debts eliminated. This type of bankruptcy ends any relationship you might have with creditors. But, with Chapter 13, you will be in repayment plan for about 5 years prior to any debts you have being totally dissolved. It’s important to know what differences come with every type of bankruptcy. This will let you find out what’s best for you.
Always protect your house. Just because you’re going bankrupt doesn’t mean that you also have to be homeless! Check your home’s current value to see if it has gained equity and get your first and second mortgage papers together. It can be worthwhile to understand the homestead exemption law to see if you qualify to keep living in your home under the financial threshold requirements.
Your trustee may be able to help you secure an auto loan or get a mortgage even though you have filed Chapter 13. However, it can be more difficult. Before you can take out a new loan, you will have to clear it with your trustee. You will need to come up with a budget and show that this new loan payment schedule is doable. Also, you need to be ready to say why you’re going to need the item.
Filing for bankruptcy is hard on anyone, and can cause extreme amounts of stress. To help yourself deal with this stressful situation, make sure you hire a legitimate attorney. Be sure that you consider more than the expense when you choose a lawyer. It may be not be necessary to hire a costly attorney; just make sure he or she is qualified to handle your case. Look to the bureau for better business, consultation, as well as others who have formerly experienced bankruptcy for more information about lawyers. Attending a court hearing will give you experience as to how lawyers handle these cases.
Do some research about bankruptcy laws before filing for bankruptcy. For instance, you may not be aware that a filer is forbidden from transferring assets from his or her name for one full year before the petition is filed. Also, you can’t go and max out your credit card just because you are about to file for bankruptcy.
As this piece suggests, personal bankruptcies come in different packages. Do not let the wealth of information become overwhelming. Think back on what you just read. You are sure to make thoughtful and beneficial decisions this way!