Bankruptcy: Some Tips You Should Know About

June 15, 2013

TIP! It is essential that you are honest and forthright in the documentation you provide for your bankruptcy filings. Not only is hiding income and assets wrong, it is also a crime.

Just thinking about bankruptcy can frighten people. Between rising debt and pressure from the family, it can leave you sleepless at night. If this troubles you, or if you are dealing with this nightmare now, the following information is required reading.

TIP! The best way to build your credit up after a bankruptcy is making all your payments on time. If so, apply for a secured credit card.

Ask those you know if they have an attorney to recommend, instead of finding one on the Internet or in the phone book. Don’t be taken in by some fly-by-night company that exists only to profit from the suffering of others. Check out any lawyer you are considering thoroughly before engaging him or her.

Chapter 7

TIP! Speak to a bankruptcy attorney about what new laws may be going into effect before your bankruptcy filing. These laws change regularly and you should stay up-to-date so you can make the best decisions.

Learn the differences between Chapter 7 and Chapter 13 bankruptcies. Chapter 7, for example, will wipe away every one of your outstanding debts. All creditor relationships will be severed. Chapter 13 bankruptcy allows for a five year repayment plan to eliminate all your debts. It’s important to know what differences come with every type of bankruptcy. This will let you find out what’s best for you.

TIP! Since it is possible to obtain a free consultation from the majority of bankruptcy lawyers, meet with a few of them prior to choosing one. It is important to meet with the actual lawyer, because paralegals or assistants cannot give you legal advice.

Take advantage of the opportunity to consult with a number of bankruptcy lawyers who offer the first visit at no charge. Make sure you meet with a licensed attorney rather than a paralegal or assistant, because it is illegal for these people to give legal advice. Look for a lawyer who you can relate to.

TIP! Be sure you know what the difference between Chapter 13 and Chapter 7 bankruptcy is. Take the time to find out about each one online, and look at the advantages and disadvantages of each.

Your most important concern is to protect your home. It isn’t inevitable that you will lose your house when you file for bankruptcy. Whether you get to keep your home depends on a few things, including its value and whether you have debts like a second mortgage or HELOC. 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.

TIP! Be sure that bankruptcy really is your best option. You may well be able to regain control over your debts by consolidating them.

If someone is scared of filing for personal bankruptcy, their feelings are completely legitimate. Even though you feared bankruptcy before, this article can rid you of that fear. Use this personal bankruptcy advice as soon as possible and make things better for yourself and your loved ones.