The sheer volume of information available on the topic of personal bankruptcy can leave those contemplating filing a petition, feeling overwhelmed and without hope. However, by taking some time to separate relevant facts from unnecessary discussion, it is possible to gain a comprehensive understanding of how bankruptcy protection can help you. By using the tips and ideas in this article, you will have what it takes to proceed confidently toward a fresh financial start.
If you are filing bankruptcy mainly because of credit card debt, you may want to consider debt settlement. Credit card companies know that if a person files bankruptcy, they will get little or no re-payment for the debt that person owes. However, if you ask to settle with them for 50 per cent of the total debt, they will at least get some of their money back. It’s worth a try!
Prepare yourself prior to filing or hiring a lawyer to pursue bankruptcy. You should gather all of your records pertinent to filing such as an itemized list of your assets, lists of bank accounts, property deeds, and other financial information. You should also have your last three years tax returns handy for reference.
Don’t repay personal debt to friends and family before filing for bankruptcy. Although you may feel obligated to pay these people back first, it is not a wise decision. Because you must reveal this information when you file for bankruptcy, the trustee can legally ask for this money back or sue for it.
A great personal bankruptcy tip is to take care of your monetary problems sooner, rather than later. You can always seek the help of counselors for free if you’re worried about your finances. Dealing with bankruptcy when it’s a bigger problem is not a situation you really want to be in.
When you are thinking about filing bankruptcy, always be honest about everything. Do not think that hiding assets or income will help your case for bankruptcy. It could turn out that the court may just dismiss your petition, and you will not be able to file again to have those debts listed.
Before you meet with a bankruptcy lawyer, make a complete list of all of your assets. Any assets that are not listed in your bankruptcy case can be seized to pay for your debts. Your lawyer needs to see a list of every asset you own to properly advise you on which type of bankruptcy is best for your unique situation, as well as, to protect as many of your assets, as possible.
A good personal bankruptcy tip is know where you stand when you’re marrying someone who’s in a rough financial situation. A lot of times, spouses think they’ll be liable for the other’s debt, but this is only so when they’ve made a voluntary agreement to be responsible for the spouse’s debt.
Consider filing Chapter 13 rather than Chapter 7, if you are facing foreclosure. A Chapter 13 bankruptcy allows you to create a restructured payment plan which includes your mortgage arrears. This will allow you to get your mortgage payments current, so that you won’t lose your home. Chapter 13 doesn’t require you to turn over property, so you don’t have to worry about the homestead exemption, either.
In recent years, the topic of personal bankruptcy has taken on increased significance, as a result of the financial crisis. An incredible amount of discussion and debate has centered around how, when and why an individual consumer might consider filing a bankruptcy petition. Investing the time necessary to sift through the noise and educate yourself about the process can be the smartest financial decision you can make. Apply the concepts in this article to your circumstances, and you may be able to begin anew with a clean financial slate.
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