There is no one that goes through life expecting to experience bankruptcy. In some situations, this is the only choice, and learning about the process is crucial. If you’re in this boat, read on for some helpful advice.
Instead of getting your lawyer from the yellow pages or on the Internet, try your hardest to find one with a personal recommendation. To handle your bankruptcy, you need a trusted attorney, not a shady one that is out to take your money.
Don’t hide assets or liabilities when filing for bankruptcy. The professional that helps you file for bankruptcy has to have a complete and accurate picture of your financial condition. Do not hold back anything, and form a sound plan to make peace with your reality.
When you do meet with a lawyer make sure that they answer all of your questions and that they do not charge you for consultation alone. Seek free consultations from a handful of lawyers, before deciding which one to hire. Choose to file only if your lawyer has convinced you that this is the best decision. It is not necessary to come to a decision immediately following the meeting. After your consultations, do some additional research on each attorney you consider qualified for the job.
When a bankruptcy is imminent, retain a lawyer immediately. Filing for bankruptcy is a complicated procedure, and you may not be aware of all the ins and outs. A personal bankruptcy attorney can help and guide you along through the bankruptcy process.
Weigh all of your options before declaring bankruptcy. For example, consumer credit counseling programs can help if your debt isn’t too large. You can also talk to creditors and ask them to lower payments, but be sure to get any debt agreements in writing.
Be certain to grasp the distinction between Chapter 7 and Chapter 13 bankruptcy cases. In Chapter 7 most of your outstanding accounts will essentially be erased. All the things that tie you to creditors will go away. If you file for Chapter 13 bankruptcy, however, you will enter into a 60 month repayment plan before your debts are completely dissolved. Look into both types of bankruptcy before deciding which one would suit your particular needs.
It is important to look at your financial situation from all possible angles before you decide to file for bankruptcy. You may qualify for alternatives such as debt repayment plans or interest rate reductions. Ask your bankruptcy attorney about these options. Look into loan modification plans if you need to deal with an imminent foreclosure. There are many ways in which a lender can make adjustments that will be helpful to you. Among them are extending the loan, forgiving late charges and reducing the interest rate. Creditors want their money. Often, they are willing to work out repayment plans with you in order to get it.
Speak with an attorney about any fears you have about losing your car. You may even be able to get your monthly payment reduced. It is possible to get your car payment lowered if you file using Chapter 7. There are a few requirements that you have to meet to be eligible, though. You have to have bought the car more than 2.5 years ago, your loan’s interest rate needs to be over a certain amount, and your employment history has to be good.
Once you make the decision to file bankruptcy, you need to start learning about it. Your process will be much simpler if you have a large knowledge base. This guide has given you a lot of information in order for you to approach your finances with a stress-free state of mind.