Filing for personal bankruptcy may seem like the best way to deal with a mountain of debt. However, if the debt is due to uncontrolled spending, the problem will not go away, just because of a bankruptcy filing. Continue reading for some insights on personal bankruptcy to help educate yourself on what this legal tool can and cannot do.
A great personal bankruptcy tip is to consider what kind of bankruptcy
you'd like to go for. In general, chapter 13 is much better because it
doesn't taint your credit report. It allows you to hold on to most of
your belongings. Chapter 7 is much more extreme to file for.
Don't be embarrassed to admit the fact that you are bankrupt to your family and friends. Most people will be surprisingly sympathetic to your situation. After all, there have been several reports published that state that one third of the population on the USA are just one paycheck away from homelessness.
If you lose your job, or otherwise face a financial crisis after filing
Chapter 13, contact your trustee immediately. If you don't pay your
Chapter 13 payment on time, your trustee can request that your
bankruptcy be dismissed.
You may need to modify your Chapter 13 plan if, you are unable to pay the agreed-upon amount.
Don't get into bankruptcy with a false sense of security. Be aware that once you've filed personal bankruptcy, it is public. Just because it involves personal financial information does not mean that it involves personal privacy. It immediately becomes public information. Anyone and everyone can see everything about your finances, if they chose to search for it.
If you are filing for bankruptcy and have outstanding payday loans, be sure to get the advice of your attorney regarding them. Many payday loan forms contain a disclaimer stating that they are exempt from future bankruptcies that may be filed by you. However, these are not supported by law. The truth is, your payday loans are fully discharged through bankruptcy just like any other unpaid bill.
Do not attempt to pay off any of your favorite creditors before you file for bankruptcy. The reason is that all of your assets will be liquidated and each creditor gets their fair share. It is not your job to decide who deserves to be paid back and who does not.
Laws regarding bankruptcy vary by state, so you need to find a lawyer that can walk you through the entire process and help keep your rights protected. In several cases, you can keep your car and your home, but it's your attorney that will tell you what rights you have, what you can keep, and what you will need to surrender.
Look for the best bankruptcy attorney who belongs to the NACBA (The National
Association of Consumer Bankruptcy Attorneys). When you are filing for
bankruptcy, it is essential that you hire the services of an experienced
and reputable best bankruptcy attorney. Attorneys that are members of the
NACBA, are also, members of a well-respected consumer bankruptcy
organization, so you can be sure that you will be getting the best legal
A great tip for filers of personal bankruptcy is to thoroughly prepare for the initial meeting with the bankruptcy attorney. By assembling every piece of relevant financial documentation, including mortgage documents, auto finance agreements, credit card statements, tax records and bank statements, you can be certain that your bankruptcy petition and supporting documentation includes all information required for a comprehensive filing.
Before you file for bankruptcy, make sure that you hire the services of an experienced local bankruptcy attorney.
Hiring a bankruptcy attorney who's located geographically close to you will mean that you can contact him or her with ease. You will then be able to meet up with your attorney in person, in order to discuss your petition in greater detail.
Don't let bill collectors convince you that you are ineligible for bankruptcy. Debt collectors do not want you to file bankruptcy under any circumstances because it means that they will not get the money you owe them, so they will always tell you that you do not qualify when given the chance. The only way to truly know if you qualify is to do some research or speak with a bankruptcy attorney.
When choosing your personal bankruptcy attorney, shop around. Schedule free consultations with several attorneys, and find one you are comfortable with. Having the best bankruptcy attorney that you are comfortable with and that you trust, will make a big difference as you proceed through your bankruptcy. Don't settle for one that makes you uneasy.
If you want to get an attorney to help you with your bankruptcy, ask
your credit counselor, friends, or family who have dealt with
bankruptcy, for a referral. If you try to find a bankruptcy attorney
online, you run the risk of running into scam artists posing as
attorneys. You should research any attorneys carefully that you find
through this method.
Do not pay an attorney for the initial consultation. If an attorney will not give you a consultation without obtaining a fee, find one that will.
Before you consider filing for bankruptcy, you should make a
pre-determination if bankruptcy may be the right choice. First, make a
list of all income, including, salary, child support, alimony, rent and
any other sources you may have. Then, make a list of your bills. These
would include mortgage, rent, car payments, monthly credit card
payments, groceries and gas. If your monthly bill total is more than the
income you bring in, it may be time to seek the advice of a bankruptcy
attorney, who can help you make the final decision.
As you can probably see, personal bankruptcy is not a magic pill that makes all of your debts just vanish. However, in certain situations, it is a viable option. Managing your finances takes discipline and a certain amount of financial knowledge. Hopefully, this article has shed some light on personal bankruptcy, whether it makes sense for you, and if it does, how to find the best bankruptcy attorney..