Personal Bankruptcy: Do I Have Any Choices?
Filing personal bankruptcy is a somewhat complex process. There are different types of bankruptcy, and the type that you choose depends upon your personal finances and the nature of your debts. The most important step you can take, of course, is to learn what you can about the process before ultimately deciding one way or the other. The following tips will help you understand bankruptcy.
When choosing a bankruptcy lawyer, your best option is to find someone who is recommended by someone you know versus someone who you find online or in the phone book. Don’t allow yourself to be taken advantage of by predatory lawyers just because you are filing for bankruptcy. It is important to find someone trustworthy.
When you realize that you probably will file for bankruptcy, do not pay your creditors or try to avoid bankruptcy by spending all of your regular or retirement savings. No matter what you do, do not touch your personal savings unless there is no other option. Although you may need to tap into your savings, you should not use up all of it right now and jeopardize the financial security of your future.
Check around to find a bankruptcy attorney with a good reputation. Once you have narrowed down your choices to one, call and ask if they offer a free consultation. If you can get a free meeting with the attorney, be sure to make an appointment and bring along all of your relevant financial information. A good lawyer can review the whole process with you and can help you understand what to expect.
Some lawyers offer a phone number that you can give creditors when they call you about your delinquent account. That way, you can simply give creditors this number, which allows them to call your lawyer and confirm that your bill is included in a bankruptcy filing. If everything checks out, the call center should then update their records to show that you no longer owe any money to that company.
Before your appointment with your bankruptcy attorney, jot down any questions that you can think of. Lawyers are pretty expensive. Write down any concerns and questions before your consultation in order to save yourself money and time. Make sure that you get a full understanding of everything that’s going on.
Be sure your home is well protected. Filing for bankruptcy does not mean you have to lose your home. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. It can be worthwhile to understand the homestead exemption law to see if you qualify to keep living in your home under the financial threshold requirements.
Just because you file bankruptcy, it does not automatically cover all your debts. Filing Chapter 13 bankruptcy permits you to reorganize your debt load and repay your creditors at least some of what they are owed. It is not uncommon for people to resist bankruptcy because they see failure to repay debts as a moral failing. Chapter 13 makes it possible for people to recover from overwhelming debts while paying a portion of the debt they owe to their creditors.
If you are feeling down, use the internet to chat with other people who have been through bankruptcy. Bankruptcy subjects you to a lot of stress. When you’re out with people you know, it may make you feel out of place. The beauty of the Internet is that you can speak anonymously with those who share your feelings about filing and the repercussions.
There are a lot of things to consider prior to filing for bankruptcy. Perhaps credit counseling can resolve your issues. May non-profit companies are available to help you. These companies lower your interest and payments by working with your creditors. You pay them and then they pay the creditors.
Spending time with the people you love is something you should do now. The bankruptcy process can be brutal. At the end of the process, many people are left with feelings of shame and worthlessness. Lots of people decide they should hide from everyone else until it is all over. This is not recommended because you will only feel bad and this may cause you to feel depressed. Remember that it is not your families fault for your financial hardships and use this time to pull together and be strong.
Facing bankruptcy is not a fun situation and cause a lot of stress and anxiety. To avoid getting too stressed, make sure you hire a reputable bankruptcy attorney. Get recommendations and look into other qualifications rather than just choosing based on cost alone. It is not necessary to engage the lawyer who charges the highest fees; all you need is a lawyer of high quality. When deciding on an attorney get referrals, contact your better business bureau or get a free consultation from at least three attorneys. When looking at bankruptcy attorneys, consider sitting in on one of their court hearings to find out how they handle the case.
Do your research ahead of time to find out if you permitted to get a Homestead Exemption with Chapter 7. If you don’t, the possibility may exist for you with Chapter 13. In some cases, it may be best to convert your entire Chapter 7 case into a Chapter 13 case, so you should talk to your attorney about your next step.
Those wanting to file for bankruptcy should not give their assets to another person within a year of filing. This is a very obvious attempt in hiding assets and could result in having your claim being rejected. Besides, depending on the type of assets you have, they could be safe anyway. It is never a good idea to hide assets like this, so be sure to wait the year if you have transferred any assets.
You will now be aware that a good deal of thought should be applied before bankruptcy papers are filed. If you think it is the right choice for you, find a lawyer that can properly guide you through the process and give you a new leash on life.