If you are among the millions of people considering personal bankruptcy as a way to deal with your financial situation, rest assured that by researching the issue AND educating yourself first, bankruptcy may be the best thing you can do for yourself and your situation! This article will be a crucial aspect of your financial education and will hopefully answer many of your questions.
Don’t delay filing for bankruptcy. There is no advantage to wait as long as you can, other than to get deeper in debt first. The longer you wait to file, the more debt you will incur and the more devastating the results will be on you and your family. If you feel that your options are between slim and none AND you don’t feel that you can utilize credit counseling in your situatioin, file for personal bankruptcy as soon as you can after all your debts have come due.
As you are about to file for bankruptcy, be sure you have all your financial information at hand. Even things that you do not use currently, should be listed in a bankruptcy filing. These could include, income from small side jobs, and any vehicles listed in the filer’s name; whether or not you use them. Also list any pending lawsuits.
If you are hiring a bankruptcy lawyer, don’t be afraid to speak up and ask questions. Don’t assume your lawyer knows everything. Your lawyer knows the law, not your specific situation. If you have any concerns, voice them before hiring the attorney. If there are things you feel your lawyer is overlooking, remind them about it. Don’t be shy about any aspect of the process. Repeat any crucial information that might have been glossed over or is incorrect.
Learn as much as you can on your down time, so that you feel more at ease with filing for bankruptcy. A lot of people are reluctant to file for bankruptcy because they think they’ll lose their jobs, or home. The law states that it’s against the law for employers to terminate you for that reason. Your house can actually be worked in as part of the bankruptcy agreement.
Once you are sure that you are going to file for bankruptcy, you should stop making any payments towards debts that will be discharged during the bankruptcy process. Since you will not be liable for these debts in the near future, it is of no benefit to you to keep making payments towards them. It would actually be more beneficial for you to save any spare cash that you have from not paying these debts for future needs.
Look for a bankruptcy attorney that belongs to the NACBA (The National Association of Consumer Bankruptcy Attorneys). Once you have decided to file for bankruptcy, it is essential that you hire the services of an experienced and reputable bankruptcy attorney. Attorneys that are members of the NACBA are members of a well-respected consumer bankruptcy organization, so you can be sure that you will be getting the best legal advice available to you.
Keep your debts to a minimum prior to filing. If you are planning on filing for bankruptcy, don’t run up your debts any faster beforehand. Your recent history will be checked by judges and creditors, and if it is deemed that you are trying to cheat the system, you may not be able to wipe out those debts during your bankruptcy proceeding. You will be viewed most favorably, if you can demonstrate that you have changed your spending habits and are trying to fix the problem.
Be aware that there are two different kinds of bankruptcy. There is Chapter 7, and Chapter 13. Chapter 7 can keep the filer from paying back any debts entirely. This option is generally for those that have debts so high or income that is so low that, they cannot afford a payment plan. Chapter 13 lets the filer get on a payment plan so that they can repay all, or parts of their debt between three and five years.
As tempting as it may be, do not run up your credit cards right before filing for bankruptcy. Many times, people mistakenly purchase expensive items, like jewelry, appliances, and furniture before they know they are going to file for bankruptcy. Most of the time, they are still going to be responsible for paying back this debt.
When it comes to personal bankruptcy, also know that your credit is not necessarily ruined for ten years. While this is commonly told to people, there are many lenders who understand that there are good people with poor credit and can actually help people re-establish their credit in positive ways.
Please hire an attorney to help you through the complex process of filing. Not only can an attorney help you win your case, but an attorney will also be able to answer any questions or concerns you may have along the way. The attorney will help you gather all of the information needed so that you spend less time waiting.
Honesty may never have been as important as it will be when going through personal bankruptcy. Hiding any income or assets may result in a dismissal from the court. It could also mean that you will be barred from ever having the opportunity to file for bankruptcy in the future as well.
As with most consumer related issues, bankruptcy is best approached with solid information and reliable legal advice. Hopefully, this article has been a great source of much needed help and you should now be better prepared to tackle your financial future! Good Luck!