Finding A Good Lawyer To Help You With Your Bankruptcy Claim

Jun 11th, 2014 | By | Category: Info

collectionguysMost people do not think they will ever need to consider filing for bankruptcy. Life can change quickly, and bankruptcy may be your only choice. Knowing how to deal with this is vital. It is unfortunate to find yourself in this position, but this article is here to help get you started in the right direction.

Individuals often seek to file for personal bankruptcy protection if their debts exceed their ability to repay them. When you get into this situation yourself, your first step is to familiarize yourself with your local bankruptcy regulations. Different states use different laws when it comes to bankruptcy. For instance, in some states you can keep your home and car, while other states prohibit this. Do you research about legal ins and outs in your state before you begin the bankruptcy process.

If you are faced with the choice of filing for bankruptcy or using your emergency fund or retirement accounts to pay creditors, opt to file for bankruptcy. Avoid ever touching retirement funds until you have no other choice. You may need to use some of your savings; however, you should not use all of your savings. Remember that you must safeguard your future financial security.

Getting unsecured credit post-bankruptcy will likely be difficult. If you find yourself in this situation, you may want to think about getting a secured card or two. Having a credit card of any type will allow creditors to realize that you’re attempting to work in the right direction to repair your credit. After a time, you are going to be able to have unsecured credit cards too.

It should go without saying, but refrain from lying in your bankruptcy filings. Resisting the temptation to hide income or valuable assets from the bankruptcy trustee is a smart way to avoid potential complications, penalties, and the possibility of being barred from re-filing in the future.

Prior to filing for bankruptcy, research which assets will remain exempt from creditors. You can find a listing of the asset types that are excluded from bankruptcy in the Bankruptcy Code. It is vital that you completely understand which assets are protected and which assets can be seized prior to filing bankruptcy. If you neglect this important step, you might be blindsided when a possession that is important to you is taken to repay creditors.

Be brutally honest when you file for bankruptcy, as hiding assets or liabilities, will only come back to haunt you. The lawyer representing you when you file needs to have full knowledge of your financial situation. Do not hold anything in secret and create a strategy on how you will deal with the things you are facing.

Stay up to date with any new bankruptcy filing laws. Bankruptcy laws are in constant flux, so just because you knew the law last year doesn’t mean that the laws will be the same this year. Your state’s website should have the information that you need.

Prior to declaring bankruptcy you really need to be sure that you’ve exhausted all your other options first. For example, you may want to consider a credit counseling plan if you have small debts. Some creditors will work with you to help you pay off your debt with lower interest rates, lower late fees, or an extended loan period.

whattodonowOnce your bankruptcy filing is under way, take the time to decompress a little. The process of filing for bankruptcy can make people a nervous wreck. You do not want to have to deal with depression in addition to your financial troubles, so you should take steps to keep yourself happy. Your life will most likely improve once you’re over this hump, so relax.

Talk to an attorney about reducing your car payments so that you can keep your vehicle. A lot of the time you can lower payments by filing for Chapter 7 bankruptcy. Your car must have been purchased more than 910 days prior to filing, be a high interest loan, and you must have had a steady work history for this to work.

If you’re unsure, then you need to learn what a Chapter 7 bankruptcy can do for you, as opposed to what Chapter 13 does. There is a wealth of information online about each type of bankruptcy and their respective pluses and minuses. Ask your bankruptcy lawyer to clarify anything you don’t understand before making a final decision about which type of bankruptcy to file.

It is in your best interest to be abreast of your rights in petitions for bankruptcy. There are bill collectors who will claim that you cannot add your debts to your bankruptcy case. Most loans can be discharged outside of certain things, like child support or loans you are paying back due to student lending. If a collector tells you your debt won’t be discharged in your bankruptcy and you know that it will, report the collector to the attorney general’s office in your state.

You should get some advice on bankruptcy if you decide you to file. Not entering the situation blindly will help simplify the process. Hopefully, you can make use of some of this article’s advice and tackle your financial issues with less stress and more effectiveness.

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