These days, the process of bankruptcy is an all to common occurrence. Thank you, economy! If you decide to file, it’s crucial that you are well educated on the subject of personal bankruptcy, so you are able to make proper choices. Within this article, you will find the knowledge and need.
Prior to filing for bankruptcy, be sure you have investigated all of your alternatives. Look into other options, such as consumer credit counseling. Bankruptcy is a serious negative on your credit history so make sure you have no other options before you file. It is important to keep your credit history as positive as possible.
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
Do not hesitate to remind your lawyer of any details regarding your case. Inaccurate or incomplete information can lead to your petition being denied. Your case and future are affected by the attorney’s action, so never be afraid to communicate.
Never pay for a consult with a bankruptcy lawyer, and ask plenty of questions. Most attorneys offer free consultations, so meet with a number of them before you retain one. The lawyer who properly answers your questions is the one you should hire. It’s isn’t necessary to make a choice right away. You have lots of time for consulting with other lawyers.
Learn the newest bankruptcy laws before filing. Bankruptcy law evolves constantly, and it’s important to stay up-to-date to ensure that you file properly. A qualified bankruptcy attorney is the best source for the latest information regarding the laws in your state.
Your most important concern is to protect your home. Filing for bankruptcy does not guarantee that you will lose your house. You might be able to keep your home, for instance, if you have two mortgages or if your home has lost its value. Otherwise, there is a homestead exemption you should look into, as it might let you stay in your house.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Take the time to find out about each one online, and look at the advantages and disadvantages of each. If anything you see is unclear or doesn’t make sense, go over it again with your attorney before making the final filing decision.
Learn what you can about Chapter 13 bankruptcies. If you posses a regular source when it comes to income, and you have less than $250,000 of unsecured debt, you could file using Chapter 13 bankruptcy. The benefit of this plan is that you retain personal belongings and private real estate and your debts are repaid by an organized payment plan. Typically, this goes on for roughly three to five years, and once this time has expired, your unsecured debt is eliminated. However, if you miss even one payment, the court will dismiss your entire case.
As noted in the beginning of the article, bankruptcy is a hot topic nowadays, mostly because of the state of the economy. Use the tips you just read to make good decisions and remain in control of your financial situation.