What To Know Prior To You File For Personal BankruptcyPersonal bankruptcy can be a difficult situation for debtors, as they may be facing repossession. Filing a claim for bankruptcy is not the end of the world. It is possible to spring back. Read this article for more tips on how to handle this situation.
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 https://www.investopedia.com/terms/d/debtconsolidation.asp 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.
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.
Visit your primary care doctor for a complete physical prior to filing for bankruptcy. If you wait until after you begin the process, you will not be able to claim your medical bills on your bankruptcy. This is especially helpful if you do not have any kind of health insurance.
Protect your wages to live on. Bankruptcy is an important way to do just that. If you owe enough money that creditors are threatening to file lawsuits against you, it's time to seek legal counsel. If a creditor sues you, they can obtain their money by garnishing your wages, taking a large chunk of change from your paychecks. This can put you in even more debt and make your situation worse. Filing bankruptcy will put a stop to any lawsuits and protect the money you need to survive. If the situation becomes dire, you can also ask for an emergency filing, so you don't have to wait a couple of weeks for the attorney to compile all the information he or she needs.
Prior to filing for bankruptcy, research which assets will remain exempt from creditors. To find an itemized list detailing assets exempt from bankruptcy, find the Bankruptcy Code. Prior to filing for bankruptcy, it is critical that you go over this list, so that you know if you can expect any of your most valuable possessions to be seized. If you don't read it, you could have nasty surprises pop up later due to your prized possessions being seized.
Do not file for bankruptcy if your income is greater than your bills. Filing for bankruptcy can really damage your credit in the long run, by staying on your report for up to ten years.
If you are planning to file for bankruptcy, be certain not to transfer any of your belongings or valuables to another person. This includes taking your name off of joint bank accounts or other financial assets. The court will be looking for anything of value in order to repay creditors, and you will be asked under oath whether you have left anything out. If you do not tell the truth, you may be charged with perjury and could possibly spend time in jail. Remember, honesty is the best policy.
See what your options are. Just because you stop receiving bills when you file for Chapter 7 bankruptcy, doesn't mean you are off the hook for paying them. Although you don't have to pay every bill if you cannot afford to, it is especially important to keep up with payments for any possessions you hope to keep, like your home and auto.
Knowing that you are required to disclose anything that you have sold, given away or transferred in the two years prior to filing can help you avoid a costly mistake. Full disclosure is required. Not disclosing everything can land you in jail or a discharge of your personal bankruptcy petition.
Do not neglect your health. During the bankruptcy process, it can often feel like you are losing everything and many people see no reason to continue looking after their body and mind. While it is true that, during the process, you might lose your home, your car and the family jewels, you need to remember that neither your creditors nor a bankruptcy judge can take away your health.
Clean up your credit record after ten years. When you file Chapter 7 bankruptcy, it remains on your credit report for ten years. However, the credit bureaus are not required to remove the information. In order to get rid of the bankruptcy record, write a letter to the credit reporting agencies, along with a copy of your discharge notice. Follow this up with a phone call to make sure that they have removed the bankruptcy record.
Have a credit report done before you file for bankruptcy. This will give you a list of debts that you have, and therefore give you a place to start when listing your debts for your bankruptcy filing. Make sure that there are no mistakes on it, and make sure to give it to your bankruptcy lawyer.
There are two common types of personal bankruptcy. One in which all your assets are liquidated and the other creates a plan to pay off debts within a few years. It is recommended that you meet with an attorney to determine which type of bankruptcy is best for your particular situation.
When selecting a lawyer for personal bankruptcy, do not be afraid to ask questions. Bring a written list to your first consultation so that none of your questions go unanswered. It can be intimidating to speak to an attorney, and having a list will ascertain that you don't forget to ask certain questions.
Once you file bankruptcy, you will need to create a budget and follow it. A budget will help you see what money you have coming in and what money you have going out. This will hopefully help you manage your money better so you are not in this situation again.
Put the date for your 341 meeting with creditors on your calendar as soon as you get it, so that you don't forget this meeting. You need to attend the 341 meeting and answer all of the trustee's questions as honestly as possible, in order to get your debts discharged.
Always be honest in reporting all income, assets and debts when filing bankruptcy. If you hide any financial information, whether it is intentional or accidental, you run the risk of being barred from filing bankruptcy on those debts listed in your original bankruptcy petition in the future, which means you will have no relief from your financial burdens.
The specter of personal bankruptcy is something countless individuals dread and strive to avoid, no matter what. The truth is that a little bit of knowledge goes a long way toward making bankruptcy a less mysterious, more accessible opportunity for those who need it. Apply the advice contained in this piece, and you may find that bankruptcy represents a good solution for your circumstances.