How You Can Decide To File For Bankruptcy

August 11, 2013

TIP! After you have declared bankruptcy, you may have a hard time being approved for unsecured credit. If you find that to be the situation, consider requesting secured cards.

No one ever expects to find themselves having to file bankruptcy. People who declare bankruptcy usually have no other options left available. If that happens to you, you can use the information laid out in this article.

TIP! If a personal recommendation comes your way, this should be a lawyer you focus on. There are lawyers out there who will take advantage of your financial state and not deal honestly with you.

Be certain to gain a thorough understanding of personal bankruptcy by using online resources. The United States Department of Justice and American Bankruptcy Institute are two such places to look. The more you know, the better equipped you’ll be to make the wise decisions needed for a successful bankruptcy.

TIP! Be honest when filing for bankruptcy, because hiding liabilities or assets can only cause trouble to you. Penalties may include fines, imprisonment or denial of the filing.

Honesty is of utmost importance during your filing, even though it may be tempting to “pad” your answers a little. You might feel tempted to not declare certain assets in your bankruptcy in order to protect them from forfeiture, but if you’re found out, the process could take longer, or worse, you might be banned from filing for bankruptcy completely.

TIP! Be aware of recent changes, if any, in the bankruptcy code. These kinds of laws are constantly changing and it is important that you are aware of these changes, so that you can learn how to properly file for bankruptcy.

Don’t fear reminding your attorney of any specific details of your case. Don’t assume that he’ll remember something from a month ago; tell him again. All information submitted to the court with your signature needs to be double checked.

TIP! Make sure your home is safe. Bankruptcy filings do not necessarily mean that you have to lose your house.

You may end up losing more than you bargained for when you file a bankruptcy claim, so be sure that you know just which assets may be taken before filing. The federal statutes covering bankruptcy can tell you exactly which assets are exempt from forfeiture to pay off creditors. You need to read the exemptions for your state, so you know what property you can protect. This will ensure that you do not have any surprises once you have filed bankruptcy.

TIP! There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. There is a wealth of information online about each type of bankruptcy and their respective pluses and minuses.

You should understand that you need to speak with a bankruptcy attorney about what you should and should not do when it comes to bankruptcy. Not entering the situation blindly will help simplify the process. This article has provided much of that information, so that you can approach your finances in a less stressed state of mind.