How Bankruptcy Affects You

Jun 29th, 2013 | By | Category: Legal

Bankruptcy is a huge financial decision that should not be lightly considered. Learn everything you can beforehand.

If you are in this position, you should know all about the laws that are in your state. Each state has their own set of rules regarding bankruptcy. Some states protect your home, and some may not. You should be familiar with the laws for your state before filing.

Have a good look around the Internet to see what information is relevant to you regarding bankruptcy. The United States DOJ, along with a number of other bankruptcy institutes and attorneys specializing in bankruptcy can give you invaluable information. The more you know, the better prepared you will be to make the best decisions and ensure that your bankruptcy goes smoothly.

You can find services like consumer credit counselling services. Bankruptcy stays on your credit for a whole decade, so before you make such a big decision, you want to exhaust all other options so that the future effects on your credit history are as minimal as possible.

Before you file for bankruptcy, find out which of your assets will be exempt from seizure. The Bankruptcy Code provides a list of all the different kinds of assets that you can exclude. Make sure that you carefully look over this list prior to filing to discover if your valuable assets will be seized. If you fail to do so, things could get ugly.  Be certain to gain a thorough understanding of personal bankruptcy via looking at websites on the subject. Department of Justice and National Association for Consumer Bankruptcy Institute are both sites that provide free advice.

When a bankruptcy is imminent, retain a lawyer immediately. Personal bankruptcies are detailed and complex processes, and you may miss something that costs you money. A lawyer that specializes in bankruptcy can make sure you are following the correct procedures in your filing.

Overall

Don’t wait until the last minute to file for bankruptcy. It is a mistake to ignore your financial troubles, thinking they may go away on their own. It is too easy for debt to mount up and become uncontrollable, and not taking care of it could eventually lead to wage garnishment or foreclosure. As soon as you stop denying that your debt is unmanageable, take action and discuss your options with a bankruptcy attorney.

For example, a filer cannot transfer assets to someone else for at least a year before filing.

Be sure that you include all debts you want discharged in your bankruptcy filing. Any debts you forget to list will not be discharged. You should have everything in writing with dates and signatures to prove that your debts have been discharged, or you could be asked to pay these debts.

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