Is your debt growing and it’s looking like you may need to file for bankruptcy? Don’t worry, you are not alone. Many people, over the past few difficult years, have found that bankruptcy is the only way to get out from under their mountain of debt. This article can help you make sure the process starts properly.
Consider hiring an attorney who specializes in personal bankruptcy. Although most states allow you to file for bankruptcy without a lawyer, your case could be dismissed if you don’t fill out your paperwork correctly, and you may need to file additional motions to protect your property or discharge certain debts. A bankruptcy attorney can help ensure that you get the outcome you hope for when you file.
If you are planning to file for bankruptcy in the near future, don’t charge up your credit cards thinking that you won’t have to pay back the debt. In many states, there are rules about how much credit card debt and what kind, may be discharged in a bankruptcy. For instance, if you make purchases for luxury items, such as an expensive new TV, within 6 months prior to filing, you may be obligated to pay that amount back. On the other hand, if you used your credit card to purchase groceries, or other necessities, the rules may be different. Be sure to ask your attorney for advice.
After a bankruptcy, you may not be able to receive any credit cards. If this happens to you, think about applying for a couple of secured credit cards. Having a credit card of any type will allow creditors to realize that you’re attempting to work in the right direction to repair your credit. Once creditors see that you are making an effort to restore your credit, they may allow you to get an unsecured card in the future.
If you are planning to file for bankruptcy, you do not need to lose your home, car or other items that you have loans for. If you wish to keep them, however, you must make the payments on a timely basis in order to avoid repossession. If the payments are too much to handle, your bankruptcy attorney may be able to arrange for an evaluation of your loan and negotiate a lower monthly payment. In the case of a home, you may look into a loan modification or refinance to reduce your payment amount.
See what you can find out. Each state does have varying laws on the subject of bankruptcy. Because of this, it is important that you meet with a specialized lawyer to discuss whether bankruptcy is right for you. Generally, initial consultations are free to you so you are able to determine which path you should head down at no cost.
Find out what you exemptions are prior to filing bankruptcy. The federal statutes covering bankruptcy can tell you exactly which assets are exempt from forfeiture to pay off creditors. It is important to be aware of this list so you will know what assets are saved. This will ensure that you do not have any surprises once you have filed bankruptcy.
It is important to understand your rights when filing bankruptcy. You can often have property returned to you. Autos, jewelry and even electronics that have been repossessed, could be returned. If the property you own has been repossessed under 90 days before the bankruptcy filing, you may still be able to get it back. Get help from your lawyer to file a petition so you can get your items back.
As mentioned previously, countless others have also experienced financial problems that have driven them to bankruptcy. However, you can be better armed by using the tips you have found here. The tips in the article above will help you get through your bankruptcy.
