What To Know Before You File For Bankruptcy

By Stacey Smith


As you probably know, the economy is in the toilet. When there is a bad economy there are a lot of people losing their jobs and having problems with debt. Because more people are falling into debt, more people are filing for bankruptcy. This article will help you to understand how to handle tough situations such as bankruptcy.

Before making the decision to file for bankruptcy, be sure to do some research and learn all you can about the subject. There are many websites available that offer this information. You can learn a lot on the U.S. DOJ, along with a number of other bankruptcy institutes and attorneys specializing in bankruptcy can give you invaluable information. The more you know, the more you'll know that you've made a wise decision and the you're making sure your bankruptcy goes as smooth as possible.

Try to make certain you are making the right choice prior to filing your petition. You have other options available like consumer credit counselling services. Be certain that bankruptcy is the only option you have before pursuing this course because bankruptcy is always evident on your financial and credit history.

You should never give up. When you file for bankruptcy you may be allowed to recover property like your car, electronics or jewelry that might have been repossessed. Any property repossessed within 90 days before filing bankruptcy, may be able to be returned to you. A lawyer will be able to assist you with filing the paperwork to get the items back.

When a bankruptcy is imminent, retain a lawyer immediately. You might not understand all of the various aspects to filing for bankruptcy. A personal bankruptcy lawyer will be able to help you and ensure you are doing things the proper way.

Before picking a bankruptcy lawyer, speak with more than one, since most offer a consultation for free. It is important to meet with the actual lawyer, because paralegals or assistants cannot give you legal advice. Looking for an attorney will help you find a lawyer you feel good around.

If you are meeting with a lawyer to discuss bankruptcy, the initial consultation should be free so ask every question you have. You can meet with a few lawyers before deciding on one. Most lawyers provide a free initial consultation. Therefore consult with different lawyers and get a feel for them, then decide which one suits your needs It's isn't necessary to make a choice right away. Be sure to talk with a number of lawyers, and compare the information you receive.

Consider Chapter 13 bankruptcy for your filing. Chapter 13 bankruptcy is a good choice for people whose unsecured debts amount to lower than $250,000 and who receive a regular income. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. Remember that missing a payment to the plan will result in your case being dismissed.

Remember that your Chapter 7 filing may affect other people in your life as well. When filing Chapter 7, you are not longer liable for the debts that you and a co-debtor signed for. Creditors, however, will hold the co-signer liable for the entire balance of the debt.

Find ways to relax while you go through the process of filing for bankruptcy. It's easy to be stressed during this time. This stress could morph into clinical depression, if you fail to adequately address the problem. Remember that your situation is going to improve after you file for bankruptcy.

If you really want to keep your vehicle, speak with your lawyer about possible choices. Sometimes, as part of the bankruptcy filing, your auto loan can be restructured so that you pay less each month. Your car must have been purchased more than 910 days prior to filing, be a high interest loan, and you must have had a steady work history for this to work.

It is important to understand your rights when you file for bankruptcy. There are bill collectors who will claim that you cannot add your debts to your bankruptcy case. Only a small number of debts are not dischargeable, including student loans and child support obligations. If you are unsure about specific types of debt, check the bankruptcy laws in your state or consult an attorney.

Even though the economy is slightly getting better, so many people do not have jobs or are not getting paid enough. You can avoid bankruptcy even with no steady source of income. Hopefully, after reading this article, you picked up on a few of the things that will help you avoid filing for bankruptcy. Hopefully better things await you in the near future.




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