Personal bankruptcy–the process can be complex and confusing. There are many kinds of bankruptcy. They one you decide on should be based on your current debts and finances. Learn as much as you can about the topic before you make any decisions regarding filing. This article will help you learn more about personal bankruptcy.
One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. Don’t hide income or assets from your lawyer or the bankruptcy trustee or you may find yourself in legal trouble.
Before resorting to bankruptcy, contact your creditors in a good-faith effort to renegotiate your payment terms, or interest rate. If you get in touch with them early enough, they may be willing to waive fees or negotiate a new payment schedule. If they are it means they are more likely to receive the money that you owe.
A critical tip in filing personal bankruptcy is to steer clear of making payments to creditors, in advance of filing a petition, in an attempt to satisfy individual debts in full outside of bankruptcy court. Payments to family members and creditors made within defined periods of time prior to a bankruptcy filing can be voided and can jeopardize the chances of receiving a discharge of all debts in the case.
Prior to putting in the bankruptcy paperwork, determine what assets are protected from seizure. There are several assets which are exempt from bankruptcy; therefore, consult the Bankruptcy code. It is important to be aware of this list so you will know what assets are saved. If you aren’t aware of this, you could lose some assets that you value.
There is hope! When you file for personal bankruptcy, you may even be able to retrieve personal property that has been repossessed. For example you may be able to get your car, electronics and even jewelry returned to you. If the repossession occurred within 90 days from your filing date, it is possible that some of your property can be returned to you. Get help from your lawyer to file a petition so you can get your items back.
Be extra vigilant about your spending habits until your hearing. Judges take a look at your entire financial picture. They even look at the things you are doing right now, to see if you are trying to take advantage of the system. Show that you are now on the right track financially.
Be prepared to complete some mandatory courses. When you file for bankruptcy, the court will require that you successfully complete two mandatory courses, a credit counseling course and a debtor education course. Both of these courses can be completed online for a nominal fee, and while they are not too difficult, it is important that you are prepared for them.
Now you know why bankruptcy filing is a type of decision that needs to be carefully thought out before being pursued. If it seems to make sense in light of your financial problems, you should seek an experienced bankruptcy attorney who can guide you toward a fresh, clean start!