Filings of personal bankruptcy have risen over the past years due to the difficult economic times. As much as you may try to avoid it, sometimes it is the only answer in getting order back into your financial situation. If you need information on personal bankruptcy, read this article for some helpful advice.
The most important tip a person filing for personal bankruptcy can remember and follow is to be completely transparent in all dealings. Don’t hide income or assets from your lawyer or the bankruptcy trustee or you may find yourself in legal trouble.
Be honest when filing for bankruptcy. Don’t hide liabilities or assets, as they’ll come back and haunt you. Regardless of the agency you file with, ensure that you tell them all they should know about your current financial situation, regardless of how good or bad it is. Don’t hold back information and create a strategy so you can deal with what’s really happening.
A useful tip for those thinking about using personal bankruptcy as a way out of their financial difficulties is to exercise great care when choosing an attorney. By selecting a practitioner who specializes in bankruptcy and who has handled a large number of such cases, it is possible to ensure the very best outcome and the greatest likelihood of forging a positive financial future.
Know what debts can be forgiven. You may hear that you have to pay a certain debt, and that it cannot be discharged, but that information will usually be coming from a bill collector. Student loans and child support and a few other debts cannot be discharged, but most others can.
Evaluate your consultation with any lawyer by the way he or she handled the consult. Consider the length of your consult. If it lasted less than 15 minutes or it was with an assistant rather than an actual lawyer conducting the consult, this could signal that lawyer is probably not the best choice. You want someone that takes the time to handle your case personally, and you want to get your money’s worth. You should also shy away from those lawyers who pressure you with phone calls or try convincing you immediately after a consultation by getting pushy.
Stay up to date with any new bankruptcy filing laws. Laws are subject to change, and it’s important that you’re educating yourself about current code only. To know what these changes are, go to your state’s website or contact the legislative offices.
Keep your head up. Getting depressed about the situation you are in will not help. Many times, bankruptcy seems like it is going to be bad, but often, it is the best thing you can do at the time. You will have a fresh start and a better financial future, if you learn from your mistakes.
Avoid running up your debt limit before you file for bankruptcy. Judges, and creditors look at recent history along with your current situation. A judge can deny some of your debts from being wiped out if, they think you’re just taking advantage of the system. Try to show that that you’re willing to change your fiscal habits.
If you meet certain requirements, you may be able to get a lower monthly payment on your financed vehicle. Many times, payments can be lowered through Chapter 7 bankruptcy. The requirements are that your car purchase has to be greater than 910 days before filing, must have a loan that is high in interest, and must have a solid work history.
If you are getting sued and filing for bankruptcy, you may need to buy some time for the summary judgment to come through. If this is the case, pay a filing fee to buy some time. Mail a letter to the opposing side stating “I dispute the validity of this debt.” That will buy you more time.
Be honest about your debts. When you file for bankruptcy, you need to be completely honest about your debts. If you attempt to hide any income, or assets from a Trustee, you might find that the court dismisses your case. You will also be barred from re-filing any debts that were listed in that petition. Report all financial information, no matter how insignificant it may seem.
In your personal bankruptcy documentation, don’t forget to account for all debts, loans, and credit cards. Even if there is no debt on a credit card, list the credit card on your statement. Quite a few people overlook these items when filing, and they can lead to delays in the process.
Personal bankruptcy can save you from spiraling down even further into debt. It can be the first step in reshaping your personal finances so that you can move on with life once again. Think about this carefully, and seek reliable help. If executed correctly, this can be your fresh start in a new beginning.
