Many people are quick to judge others badly when they have to declare bankruptcy, yet they are also as quick to change their mind if they are suddenly in that boat. Sometimes bankruptcy becomes the only viable financial option thanks to uncontrollable circumstances, like a divorce or a layoff. If filing for bankruptcy is your only choice, educate yourself on the process.
Never shirk on the truth in your petition for bankruptcy. You must avoid the temptation to conceal any valuables, money or other assets from the courts. If they find that you have lied, you may be faced with fines, penalties or the inability to file in the future.
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. You are in this situation, now help them to give you the best assistance possible to deal with it. You do that by giving full disclosure and holding nothing back.
A free consultation is standard for bankruptcy attorneys, so shop around before settling on one. Just be sure that the person you speak with really is the lawyer, rather than a paralegal, since they cannot legally give advice. Take some time to talk to different lawyers to find one that fits your needs, and meshes well with you.
Don’t be tempted to race toward a bankruptcy without taking time to make sure it is the right thing for you to do. Consider whether debt consolidation may be a more viable alternative. Bankruptcy is not a simple, breezy course of action that should be taken lightly. It will also harm your ability to secure credit in years to come. Therefore, before you file for bankruptcy you need to consider all of your alternatives.
If you are making more money than you owe, bankruptcy should not even be an option. The cost to your credit history far outweighs the simplicity of the easy-out bankruptcy. This is a hard pill to swallow for many.
Before ultimately deciding whether or not to file for bankruptcy, be sure to weigh the different options available to you. There are many recouses available to help you lower your payments and get back on track. Loan modification can help you get out of foreclosure. There are many ways in which a lender can make adjustments that will be helpful to you. Among them are extending the loan, forgiving late charges and reducing the interest rate. Creditors would rather be repaid, however slowly, than have you declare bankruptcy.
Talk to an attorney about reducing your car payments so that you can keep your vehicle. You can often lower your payment using Chapter 7 bankruptcy. Here are the qualifications in regards to your vehicle: you must have bought it nine hundred and ten days or more before filing for personal bankruptcy; your loan must carry high interest; your work history must be steady and solid.
You can take out a mortgage or car loan while filing Chapter 13 bankruptcy. This is a lot harder. Your trustee must approve any new loans such as this. Draft a personal budget to show that you will be able to repay your new loan. Also, be sure you have a clear explanation as to why the item you are purchasing is absolutely necessary.
It is important to understand your rights when you file for bankruptcy. Don’t take a debt collectors word for it simply because they tell you that you can’t have many or all of your debts erased by bankruptcy. What you can’t file on is very small, like student loans or child support payments. If a collector tells you your debt won’t be discharged in your bankruptcy and you know that it will, report the collector to the attorney general’s office in your state.
Do not pay off debts blindly before you file a personal bankruptcy. Some bankruptcy rules do not allow you to send money to creditors within three months of filing; this can extend up to a full year if a loved one is involved. Read up on the rules before you make any decisions about your finances.
Don’t put off filing for bankruptcy until you are in dire straits. It might seem a little scary, but if you wait forever to act, you’ll just be waiting that much longer once you do ultimately file. By consulting a professional, you will be able to get the advice that you need before everything gets too complicated.
If you are going to declare bankruptcy, hire a lawyer first. A qualified lawyer can access your need to file, go to court with you and make the process simple. The process won’t be simply, and your attorney can help you understand the necessary paperwork.
Make sure that you include every one of the debts you would like discharged in your bankruptcy filing paperwork. Anything not listed will not be a part of the discharge. It is up to you to verify that you’ve disclosed all debts so that you won’t end up paying off debts that may have been covered by the bankruptcy filing.
Rethink getting divorced if you are in a bad financial situation. The economic stress of a divorce can be the final blow leading to bankruptcy and this situation may be avoided. Divorce is not always the best option and should be carefully considered before proceeding.
Ask your bankruptcy lawyer if they have a telephone number for you to refer all debt collectors when they call about your debt. Creditors can receive confirmation that you are indeed filing for bankruptcy protection from them if they give that number a call. They will stop calling you at this point, and you will be able to answer your phone without fear.
If you have tried everything you can think of to resolve your financial difficulties, filing for personal bankruptcy may be your only option. You should not let it ruin your life though if you find yourself facing this decision. You can find the information that you need in the article below.