Some people think bankruptcy is an option for “losers”; those are usually the first people that think differently when bankruptcy affects them. Changing circumstances, like losing a job or divorce, can create a situation where claiming personal bankruptcy is the only choice possible. If this has happened to you, the hints in this article may be of use.
A lot of people find themselves needing to file bankruptcy when they are unable to pay their bills. If this describes your situation, it makes sense to become familiar with relevant laws. Every state is different when it comes to dealing with bankruptcy. For instance, some states protect you from losing your home in a bankruptcy, but others do not. Be sure you educate yourself on local laws prior to filing.
It’s important that you understand what bankruptcy is and how it will change your life before you attempt to file a claim. Many sites, including the U.S. Department of Justice and American Bankruptcy Institute are two such places to look. As with everything in life, the more you know about filing a claim, the better off you’ll be. You can properly prepare when you know what you’re preparing for.
When choosing a bankruptcy lawyer, your best option is to find someone who is recommended by someone you know versus someone who you find online or in the phone book. To handle your bankruptcy, you need a trusted attorney, not a shady one that is out to take your money.
Any bankruptcy consultation should be free of charge. Seek free consultations from a handful of lawyers, before deciding which one to hire. Choose to file only if your lawyer has convinced you that this is the best decision. You don’t need to decide what to do right away. You can take as much time as you need to meet with different lawyers.
Be certain that you can differentiate between Chapter 7 and Chapter 13 bankruptcy. 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. In a Chapter 13, though, you’ll be put on a payment plan for up to 60 months before being free of your debts. It’s crucial that you know the differences between all of the various kinds of bankruptcies so that you may choose the best option for your situation.
Before filing for bankruptcy ensure that the need is there. It might be possible to consolidate some of your debt instead. It is not a quick and easy process to file for bankruptcy. 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.
Consider Chapter 13 bankruptcy, if you chose to file. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. This lasts for three to five years and after this, your unsecured debt will be discharged. Remember that if you even miss one payment that’s due under this plan, the court could dismiss the whole case.
Understand the rights you have as a bankruptcy filer. Do not rely on your debtors information about whether or not certain loans can be included in your bankruptcy. What you can’t file on is very small, like student loans or child support payments. If the debt collector tries to tell you that your debts, which do not fall into those categories, cannot be bankrupted, take a note of it, look up the debt type, and report them to your state’s attorney general office.
Every single piece of financial information you have needs to be studied and properly listed when filing a bankruptcy claim. If the court thinks you are attempting to conceal information, your petition could be denied. Even if it’s a small sum, make sure it is listed. Financial information should include all income, assets and loans.
Long before you file any paperwork dealing with bankruptcy, your first step should be learning the rules and the process. The code governing personal bankruptcy is a complex area that is subject to much misunderstanding. If you do not know bankruptcy law, your bankruptcy case could be dismissed. Take the time to research personal bankruptcy before moving forward. That way, you will have an easier road.
After considering all of your options, you may find that bankruptcy is your only choice. You need not stress out, if your circumstances have brought you here due to things outside your personal control. You will see treasured information in the article that follows.