Looking To File For Personal Bankruptcy? Check Out These Tips!

Posted on Jun 14, 2012 in Personal Finance | 0 comments

Don?t put everything on your lawyer. Your lawyer is the one who knows about the bankruptcy laws, but it is in your best interest to find out as much about the proceedings as you can. You may be tempted to hand over the reins to your attorney, but keep in mind that your future is actually at stake.

Never lie about anything in your bankruptcy petition. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.

Some lawyers have a phone service creditors can call instead of you. When a debt collector calls the number, they will be able to obtain verification that your personal debt is in the process of bankruptcy filing. You should receive no more calls from them.

If you plan to file bankruptcy, do not continue using credit cards. It might be a temptation to buy a lot of things, but the courts tend to look poorly on that. Be responsible and do not incur any further debts. It?s best to start handling your debts responsibly now rather than later.

Look for a bankruptcy lawyer that comes from a personal recommendation instead of someone random on the Internet or in the yellow pages. Companies are constantly popping up, claiming to help, yet only seek to profit from your misery. In ensuring that your bankruptcy is as simple as possible, trusting your attorney makes a big difference.

Do not file for bankruptcy unless you are sure this is the only option possible. Some creditors will settle for lesser amounts on debt, or help you work out a more affordable payment plan. This can be a big boost to your credit rating, and it can save you money. Before filing you should think about getting a loan that will consolidate all your debts.

If you find yourself in a bad financial situation, think back and analyze your mistakes. If you were hit by a bus and racked up hundreds of thousands in medical bills, you?re probably not at high risk for filing again, but if you recklessly maxed out your credit cards, you might want to rethink your habits. Don?t assume that you can handle getting past these things on your own, if you find yourself continuing to do it. Get help.

Chapter 13 bankruptcy might be a good option, so don?t overlook it. With a regular income and unsecured debt below $250,000, Chapter 13 is probably best for you. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. It usually takes three to five years to fulfill this plan. When the time is up, you?re unsecured debts will be discharged. Remember, though, that if you fail to make even one payment, the case will be thrown out and you?ll be right back where you started.

Remember that your Chapter 7 filing may affect other people in your life as well. You will be freed of responsibility for debts that you share if you make a successful Chapter 7 filing. This does not dissolve any co-signers of the debt, and your creditors will continue to try and collect from them.

You?re going to need to select an attorney with ample experience dealing in bankruptcies if you?re planning to file. There are a lot of lawyers available to help you. You may think that hiring the chief lawyer is the way to go; however, remember that your fate is in the lawyer?s hands. Hire one with a successful record for handling bankruptcy cases.

Don?t wait until the last minute to file bankruptcy. Often, people try to act like they are not in financial straits. They imagine the issues will blow away, but they do not. Your debt can quickly get way too large, and as a result, you may discover that you must foreclose your home or garnish some of your wages. Consider all possible options before filing bankruptcy.

It is important to consult with an attorney who specializes in bankruptcy if you are headed toward bankruptcy. A qualified attorney can advise you on the necessity of filing, represent you in court and simplify a complex process. Your lawyer could also help you with filling out paperwork and can also teach you how to answer questions.

As you must realize by now, bankruptcy is the topic of many dinner conversations lately because of the economy. By using the information you?ve read here, you can now make sound decisions about your finances and choose the bankruptcy option that will work best for you.

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