Although some people think filing for bankruptcy is only for losers, they are quick to dismiss the idea when they are faced with it. A quick change in an life, such as a divorce, can cause a situation that can only result in bankruptcy. If you find yourself in this situation, take some comfort from the help in his article.
If you are planning to file for bankruptcy, be sure to learn what types of assets you will be able to keep and which can be seized. The Bankruptcy Code has lists of various asset types that are exempt during the process. It is crucial to read the list before you file for bankruptcy so you know whether your favorite items will be taken. If you don’t read it, you could have nasty surprises pop up later due to your prized possessions being seized.
Make sure you are completely honest when filing for bankruptcy. Hiding your assets is never wise. Whomever you use to file with must know everything there is to know about your finances, both good and bad. Lay everything out on the table so that you and your lawyer can devise a plan to get you out of this mess.
Be sure to remind your lawyer if it seems that some details of your situation are forgotten. Don’t just assume they already know and that they have these important details committed to memory or written down. This is your bankruptcy case, so do not be afraid to remind your lawyer of any key facts.
Brush up on the latest bankruptcy regulations before you decide whether or not to file. This area of law is in constant flux and it is imperative that you know where the law stands at the time you file for your bankruptcy. Review the state legislature web site or contact the state legislature office to keep abreast of changes in the law.
You could see about filing for Chapter 13 personal bankruptcy. 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. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. The window for Chapter 13 repayments is typically 3-5 years. At the end of this time, any unsecured debt is discharged. Remember that you must make every payment. Missing even one could cause the court to dismiss your case.
You need to educate yourself on the differences between Chapter 7 and Chapter 13. In Chapter 7 bankruptcy, your debts are all eliminated. You will be removed from any contracts you have with your creditors. Chapter 13 bankruptcy allows for a five year repayment plan to eliminate all 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.
Carefully consider filing for bankruptcy on loans that have a co-signer, especially if that co-signer is a business associate, close friend or relative. When you file under Chapter 7, you will no longer be legally responsible for any debts that were signed by yourself and a co-debtor. However, if you had a co-debtor, they will be required to pay the debt.
Be certain to have a good understanding of bankruptcy regulations prior to filing a petition. For example, it is against the law to transfer any assets from the filer to another for a year before filing. Also, it is against the law for a person to acquire more debt on their credit card prior to filing.
Bankruptcy should be considered only as a last option. No matter how you arrived at this place, there is help available to reduce the stress you are under. You may be better prepared for the bankruptcy process after you’ve taken taken a look at this article.
Make time to visit with family and friends during the bankruptcy process. Going through a bankruptcy is never easy. Not only is the process long, but it can be stressful, and many people feel ashamed when they do it. Some folks tend to stay in the shadows until their case has concluded. However, you will only feel worse about what has happened, which may lead you into depression. So, it is critical that you keep spending time with the ones you love, regardless of the current financial situation.