How To Avoid The Pitfalls Of Personal Bankruptcy

No one thinks they will ever come face to face with bankruptcy. In some situations, this is the only choice, and learning about the process is crucial. If you discover that you are faced with bankruptcy, you can help yourself with the knowledge provided below.

Be as honest as you possibly can when filing for bankruptcy; hiding liabilities or assets will only hurt you in the long run. It is important that you are completely transparent, showing everything financial that needs to be known. Bankruptcy can be a chance to simplify your finances, but any schemes you employ to conceal the truth can ruin that chance for you.

A good tip to get creditors to leave you alone directly is to contact an attorney that will handle creditors for you via a phone service. You will be given a phone number where they can call to get information regarding your bankruptcy. You should receive no more calls from them.

Remember to do your homework. If you can’t afford to hire a lawyer to handle your bankruptcy proceedings, it can be tempting to do-it-yourself. Make sure you learn everything about this topic first. Realize, however, that people who file on their own often make mistakes that prevent the process from going forward. Double check every step you take to ensure this does not occur.

TIP! If you cannot qualify for a Homestead Exemption when filing for Chapter 7 bankruptcy, it is possible you might also be able to do Chapter 13 too, simply for your mortgage. There are some times when your best option will be to change your case from a Chapter 7 filing to a Chapter 13 filing.

If a personal recommendation comes your way, this should be a lawyer you focus on. There are lawyers out there who will take advantage of your financial state and not deal honestly with you. Make sure your filing process goes as well as possible by finding a trustworthy lawyer.

Financial Situation

If you are a position where you are considering bankruptcy, take a moment to reflect on how your financial situation got this bad. Unexpected medical bills is one thing, but blowing money on shopping is another. If you’re having trouble spending money correctly, then you have to get help with that so you’re not going to end up in the same financial situation again after you complete your bankruptcy.

In the event your case for bankruptcy is dismissed due to an error you made, you may be able to file again. But, most of the time, you only get an automatic stay for thirty days after filing if the case was previously dismissed. It is possible to extend the stay, provided you can show just cause for the error and need for re-filing.

TIP! Research Chapter 13 bankruptcy, and see if it might be right for you. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you.

Before you file for bankruptcy, carefully consider if it is the right option for you. You have other options, including consumer credit counseling help. Bankruptcy permanently affects your credit, so avoid filing until you have exhausted all of your other options.

You should understand that you need to speak with a bankruptcy attorney about what you should and should not do when it comes to bankruptcy. The more knowledge you gain, the simpler the process becomes. Much of the information you need was provided to you in the article above.

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