Advice On How To File For Bankruptcy
When your debts get out of control, it’s common to start worrying about losing your possessions and assets that you care about most. Put an end to the collection calls and come up with a plan that may involve filing for bankruptcy. Take a few minutes to go over this article and make good use of the tips presented.
Visit web sites and read information to learn as much as possible about the topic of personal bankruptcy. The United States Department of Justice and National Association for Consumer Bankruptcy Attorneys provide excellent information. Knowing is half the battle, after all, and these websites are the first step in learning what you need to know to make your bankruptcy smooth and stress-free.
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. You should not use your retirement savings unless the situation calls for it. You may need to withdraw some funds from your savings account, but don’t take everything that is there as you will be bereft of any financial backup if you do.
One of the most important things to remember when filing for bankruptcy is to be honest and truthful every step of the way. It is vital that you disclose all information about your assets and income so there are no delays or penalties, such as a court barring you from filing again later in the future.
You may end up losing more than you bargained for when you file a bankruptcy claim, so be sure that you know just which assets may be taken before filing. The Bankruptcy Code has lists of various asset types that are exempt during the process. Be sure that you study this list. Make yourself aware of any assets you have that could be seized. If you don’t read it, you could have nasty surprises pop up later due to your prized possessions being seized.
Before you decide to file bankruptcy, be sure to check for any new laws that may apply to your case. Make sure to get the most up-to-date information concerning the bankruptcy laws in your state. Check the website of your state’s legislation or get in contact with your local office to learn more about these important changes.
There are two types of bankruptcy filing, Chapter 7 and Chapter 13 so make sure you know the differences. In Chapter 7 most of your outstanding accounts will essentially be erased. All creditor relationships will be severed. Chapter 13 bankruptcy though will make you work out a payment plan that takes 60 months to work with until the debts go away. When choosing the type of personal bankruptcy that is correct for you, it is very important that you know the differences.
Before filing for bankruptcy under Chapter 7, make sure that you consider the implications this will have on any of your co-debtor, who are usually family members, close friends or business associates. Once you file for Chapter 7 bankruptcy protection, you no longer have legal responsibility for debts that you and any co-signers originally agreed to. However, if you had a co-debtor, they will be required to pay the debt.
When filing for personal bankruptcy you should always be aware of your rights. Some bill collectors will tell you that your debts can’t be bankrupted. Only a few debts are immune to bankruptcy. Taxes, student loans and child support would be the major ones. If you are told by a debt collector that your debts are not dischargeable, make a record of your conversation and report the individual to the proper state authorities.
Avoid using bankruptcy as a last resort. A lot of people ignore their financial problems, thinking they are going to go away; that is a big mistake. Debt could become uncontrollable and by not dealing with them properly, your wages could be garnished or you may find your home in foreclosure. When you find that you cannot take care of your debts anymore speak with an attorney for bankruptcy to talk things over.
Although bankruptcy is an available option, it is best you look for alternative solutions first. Avoid debt consolidation services and credit counseling services that seem too good to be true. Take what you’ve just learned to heart, and make wise financial decisions going forward.