Filing for bankruptcy is always a hard thing to do. When you start the procedures to file for bankruptcy, you start thinking about all of the wrong things that you did. If you have not filed yet, there is still time to make things right, look through this article and figure out what you can do.
Learn as much as you can about bankruptcy by going to informational websites. The US DOJ, the NACBA, and the ABI all have useful information. The more you know, the better equipped you’ll be to make the wise decisions needed for a successful bankruptcy.
Don’t be afraid to remind your lawyer about important aspects of your case. Many times a lawyer may forget a key detail; therefore, it is important to remind your lawyer of any key information. It is in your best interest to speak out. You are in control of the outcome of your bankruptcy.
If you are meeting with a lawyer to discuss bankruptcy, the initial consultation should be free so ask every question you have. You can meet with a few lawyers before deciding on one. Most lawyers provide a free initial consultation. You should make a final decision only once all of the questions or concerns are sufficiently attended to. Take your time before you decide to file after you meet with your lawyer. Consulting with several attorneys will also help you find someone you trust.
Before meeting with a lawyer, start compiling all of the documentation and paperwork you will need to provide an accurate picture of your finances. Gather six months’ worth of pay stubs, bank statements, bills and credit card statements. Create a list of property and assets that you own. Having this entire information ready from the beginning can save you trouble when it’s time to file.
If you choose to file Chapter 13 bankruptcy, be sure that the amount of your monthly payments is within your reach. If you set a payment that is more than you can afford, you may face a court order of liquidation of all of your assets. You will lose everything by falling behind on payments.
Before deciding to file for bankruptcy, you may want to look into other options. Remember, when you file for bankruptcy, you are greatly hurting your credit score, which in turn, can prohibit you from buying a house, car, and other big purchases. Consider safer, alternative methods first, such as consumer credit counseling.
Think carefully before filing Chapter 7 bankruptcy. While Chapter 7 bankruptcy (irreversible insolvency) will effectively get rid of all your debts, allowing you to start afresh, it will also be on your credit report for 10 years. This will greatly reduce your chances of getting any type of credit in the future. Consult with a bankruptcy attorney – he or she may be able to suggest a different form of debt relief that won’t have such a damaging effect on your credit.
Make sure that you do everything in your power to avoid bankruptcy. Avoid financial disaster and make sure that you are not going to be embarrassed around friends and family, the next time they talk about their finances and credit history. Hopefully, this article has helped you out.