Helpful Advice For Surviving Your Personal Bankruptcy

June 30, 2013

TIP! When you realize that you probably will file for bankruptcy, do not pay your creditors or try to avoid bankruptcy by spending all of your regular or retirement savings. Retirement accounts should never be accessed unless all other options have been exhausted.

Filing for bankruptcy can be relieving and stressful, all at once. The stress is having to deal with your financial crisis and those involved in the process. But, you will also have the opportunity to get a fresh start, rid yourself of bill collectors and start rebuilding your credit. Read on for advice on easing the pain of bankruptcy.

TIP! Honesty is of utmost importance during your filing, even though it may be tempting to “pad” your answers a little. It is vital that you disclose all information about your assets and income so there are no delays or penalties, such as a court barring you from filing again later in the future.

Don’t be reluctant to remind your lawyer about specific details he may not remember. You should not take for granted that your lawyer will remember every important detail that you have have told him earlier without a reminder. Ultimately, this is your bankruptcy and your financial future, so never hesitate to advocate on your behalf.

TIP! Prior to putting in the bankruptcy paperwork, determine what assets are protected from seizure. You can find a listing of the asset types that are excluded from bankruptcy in the Bankruptcy Code.

Don’t pay to for an initial consultation with a bankruptcy attorney, and thoroughly question each candidate. Most lawyers will meet with you for free and give you helpful advice, so meet with several. Make your decision after all of your questions have been answered. You do not have to give them your decision right after the consultation. This will give you extra time to interview several attorneys.

TIP! Do not despair, as it’s not the end of the world. When you file for bankruptcy you may be allowed to recover property like your car, electronics or jewelry that might have been repossessed.

Before you file, make sure you understand current bankruptcy laws. Bankruptcy law evolves constantly, and it’s important to stay up-to-date to ensure that you file properly. Your state’s legislative offices or website will have up-to-date information about these changes.

TIP! Learn how Chapter 7 bankruptcy and Chapter 13 bankruptcy differ from each other. Weigh all the information you can find on- and off-line to make an educated decision.

See if there is an alternative you can use before declaring bankruptcy. For example, there are credit counseling services that can help you to deal with smaller amounts of debt. Negotiating with creditors is another option, but creditors are notorious for “forgetting” these agreements, so get them in writing!

TIP! It is important to understand your rights when you file for bankruptcy. Do not take debt collectors at their word when they tell you that a specific debt can’t be discharged through bankruptcy.

Bankruptcy has several pros and cons. Each person has their own reasons to file. Your job is to make sure you keep all the information you can on hand, as you progress. The information you just read will greatly simplify the bankruptcy filing process. Apply all of the knowledge you have gained from this article and you will be on your way to feeling more at ease about your bankruptcy.