Professional Advice For Dealing With Personal Bankruptcy

If you have considered filing for bankruptcy, you are probably stressed out and upset. It can be hard to figure out what to do and what steps you should take. Here are some smart tips that you can use to guide you through this difficult time and take the actions that are right for you.

If you are being faced with home foreclosure, wage garnishments or other situations that make it necessary to file for bankruptcy quickly, you may want to explore an emergency filing. Regular bankruptcy filings entail approximately 50 pages of paperwork and one to two weeks for an attorney to pull everything together. In an emergency filing, your attorney can file just the first 2 necessary pages and keep creditors from continuing foreclosure or garnishment proceedings. The rest of the work will be completed afterward.

You should look into and understand which debts are eligible to be written-off under bankruptcy. There are certain loans, such as student loans, that do not qualify. By understanding which debts you can write-off, you can make a better decision when trying to figure out if bankruptcy is the right choice for you.

When you file for bankruptcy you limit your options for many future loan options. Many banks do not forgive bankruptcy and it shows on your credit report for 10 years. Think twice before making the decision to file for bankruptcy. You might want to defer your bills for a couple of months, instead of hurting your credit for 10 years.

When it gets time to think about bankruptcy, avoid using your retirement or savings to pay off the creditors or even make attempts to settle the debt. Retirement accounts should never be touched if it can be helped. If you have to use a portion of your savings, make sure that you save some to ensure that you are financially secure in the future.

It should go without saying, but refrain from lying in your bankruptcy filings. Resisting the temptation to hide income or valuable assets from the bankruptcy trustee is a smart way to avoid potential complications, penalties, and the possibility of being barred from re-filing in the future.

No good will come of trying to conceal your assets or your liabilities in the bankruptcy process; you want to be scrupulously honest when you declare bankruptcy. Regardless of the agency you file with, ensure that you tell them all they should know about your current financial situation, regardless of how good or bad it is. Keeping secrets or trying to outsmart everyone is not a wise move.

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.

Now that you have read this article, you know that there are things you can do to ensure your financial well-being, even if you should choose to file for bankruptcy. Bankruptcy can be stressful and upsetting, but now that you have the information to make smart decisions about your actions, you can start to rebuild your financial life.