Those who face personal bankruptcy sometimes feel negative emotions, like anger. People sometimes assume incorrectly that they are up against a wall, and there’s no way out. As you can see, filing for bankruptcy does not mean life is over.
Think through your decision to file for bankruptcy carefully before going ahead with it. It is possible to take advantage of other options, like 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.
Always be honest with the information you give about your finances. You must avoid the temptation to conceal any valuables, money or other assets from the courts. If they find that you have lied, you may be faced with fines, penalties or the inability to file in the future.
Check the accuracy of all information before it is filed. Don’t assume that he’ll remember something from a month ago; tell him again. Don’t be afraid to speak up, as it is your case and your future will be affected by its outcome.
You are going to get found out and get in trouble if you don’t disclose all your assets, so be totally honest from the beginning. Wherever you file, that court has to be made aware of all details regarding your finances, positive and negative. You are in this situation, now help them to give you the best assistance possible to deal with it. You do that by giving full disclosure and holding nothing back.
Before declaring bankruptcy, ensure that all other options have been considered. For instance, a consumer credit counseling program may be a better bet if your debts are relatively small. Also, if you just contact your creditors and speak to them plainly and truthfully, the odds are good that you can negotiate a better payment structure that you can afford.
Consider filing for Chapter 13 bankruptcy. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. When you file for Chapter 13, you can use the debt consolidation plan to repay your debts, while retaining your real estate and your personal property. Expect to make payments for up to 5 years before your unsecured debts are discharged. Keep in mind that even missing one payment can be enough for your whole case to get dismissed.
If you are earning enough to cover your bills, don’t file for bankruptcy. The cost to your credit history far outweighs the simplicity of the easy-out bankruptcy. This is a hard pill to swallow for many.
Make sure you consider implications of bankruptcy before filing for Chapter 7. Debts that involved a co-signer can be discharged in Chapter 7 bankruptcy. Sadly, this will not be the case for your co debtor. Your creditors may simply turn their attention to your hapless acquaintance.
Act at the right time. The timing of your filing could be important to its success. Sometimes you may want to wait to file and in other situations you may find it better to do it as soon as you can. A lawyer is in the best position to evaluate your case and figure out when you should file for bankruptcy.
Be certain you are totally aware of the laws of bankruptcy before you file. There are many pitfalls you can easily fall into, such as transferring away assets to prevent them from being included in the filing. Moreover, a filer is prohibited from spending or incurring extra debt prior to their bankruptcy filing.
With any luck, this piece has shown you that financial roadblocks are not necessarily the end of the world. While filing for bankruptcy is initially an emotional downer, things will improve. Follow our tips to work your way past your burden of debt.