When you are thinking about filing bankruptcy, there are a lot of things you need to consider. Bankruptcy laws have changes a few times in the past few years, so it can be hard to know what to expect. Here are some helpful tips so that you have a better idea of how to deal with bankruptcy.
Don’t charge up your credit cards knowing you are going to file bankruptcy, if you have already started the process or made recent purchases for luxury items. While this type of purchasing is still part of your “�debt,’ it is likely that you’ll still be responsible for repaying the money for those items. In most cases, what you are attempting to do is obvious.
You should be able to meet with a specialized lawyer for free to ask your questions. It is a good idea to consult several attorney before deciding on one. Decide which lawyer you like best buy reviewing all of the lawyers’ answers to your questions. Choose the lawyer who addressed your issues the best. You do not need to make a decision immediately after the consult. You can take as much time as you need to meet with different lawyers.
If you are unsure about the paperwork that you need to bring with you when you meet with an attorney, ask. Also, inquire as to whether the lawyer you are meeting with offers free consultations. You do not want to be surprised by a large fee just for them taking a look at your case.
You do not need to be bankrupt to file for personal bankruptcy. In 1898 the term was changed from “bankrupt” to “debtor” so that people could more readily understand that an inability to pay bills is the main qualifying factor in filing for personal bankruptcy. Most people who file are not, in fact, completely bankrupt.
You could see about filing for Chapter 13 personal bankruptcy. With a consistent income source and less than $250k in debt, try filing for Chapter 13. This allows you to keep possession of your real estate and property and repay your debt through a debt plan. This plan normally lasts from three to five years, in which you’ll be discharged from unsecured debt. Keep in mind that even missing one payment can be enough for your whole case to get dismissed.
Once you determined that you want to file for bankruptcy, it is important that you figure out which kind is best for you to file. For instance, with Chapter 7 most of your debts will be relieved, and you can keep certain aspects. With Chapter 13 your debt gets reconstructed, and you are given a certain amount of time to pay it off.
There are a lot of things to know if you want to file for bankruptcy, especially if you are not a lawyer and don’t know all of the bankruptcy laws. Use the tips in this article to keep you on the right path. Find out as much as you can, so you can start to improve your finances soon.