Just thinking about bankruptcy can make people fearful. Similarly, mounting debt and the inability to sufficiently support oneself and family is another very real fear. If this troubles you, or if you are dealing with this nightmare now, the following information is required reading.
Don't hesitate to give your attorney a heads-up about something she has missed. Don't assume that they'll remember something important later without having a reminder. All information submitted to the court with your signature needs to be double checked.
Be completely honest whenever you file for personal bankruptcy. Hiding any asset or liability is a risk that will bite you in the end. Whomever you use to file with must know everything there is to know about your finances, both good and bad. Do not hold anything in secret and create a strategy on how you will deal with the things you are facing.
Don't throw in the towel. Once bankruptcy has been filed, you may be able to regain possession of items such as electronic goods or cars that were taken away from you. If you have property repossessed less than ninety days prior to filing your bankruptcy, you may be able to get it back. Consult with a lawyer who is able to assist you in the filing of your petition.
Avoid paying for a consultation with the bankruptcy attorney, but do ask many questions. Almost all lawyers will give a free consultation, so meet with more than one before making a decision on whom to hire. Make your decision after all of your questions have been answered. You can think about your decision before making a commitment. You can take as much time as you need to meet with different lawyers.
Make sure your home is safe. Bankruptcy filings don't necessarily have to end in the loss of your home. It depends what your home value is and if there is a second mortgage, as all this stuff comes into play when determining if you can keep the home. Otherwise, look into the homestead exemption which may allow you to stay in your home if you meet financial threshold requirements.
Consider Chapter 13 bankruptcy, if you chose to file. If you owe an amount under $250,000 and have a consistent income source, Chapter 13 may be right for you. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. It usually takes three to five years to fulfill this plan. When the time is up, you're unsecured debts will be discharged. Bear in mind that if you miss a single payment that is due under your plan, the entire case will be dismissed by the Court.
It is not unusual for people to be worried about bankruptcy; the process is nerve-wracking. You might have been worried about it before, but this article can put those fears to rest. Use the bankruptcy information in this article to make your financial life yours again.
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