Filing for bankruptcy is a huge decision in anyone’s life. Before you go through with it, you need to understand the gravity of the situation. It is crucial you educate yourself on the entire bankruptcy filing process. What you’ll read in the article below can help you tremendously when filing a claim. No matter which decision you make, knowledge is essential.
Check out your state and local laws on bankruptcy prior to filing. Review your situation and see how many of your debts you can have discharged. Certain debts, such as credit card debt for non-essential items, may not be discharged if they were incurred within 90 days of declaring bankruptcy. Have a look at what laws are applicable within your state.
If you are thinking about filing for bankruptcy, one of the first things you should do is look into the laws of your state. As an example, it is prohibited for someone to transfer assets from the filer’s name for one year prior to filing. Also, you must never incur significant new obligations must prior to filing for bankruptcy.
Keep an eye on any progress made by your attorney. It is important to know the status of your case and you should not be hesitant to ask questions. Mistakes can unintentionally occur in busy law firms, which is why it is important to keep on top of things yourself, just in case. Contrary to what many of us believe, attorneys are human too!
Consolidate a list of what you owe. You will need this list when you file, so it is important for it to be as compete as possible. Remember to go through all of your records and try to determine the exact amount. It can be difficult or even impossible to discharge your debts if you report them inaccurately; be sure that you double check your figures.
Protect your home. Filing for bankruptcy does not mean you have to lose your home. Depending on if your home’s value has gone down or if it has a second mortgage, you might be able to keep it. Otherwise, try looking into house exemptions that may let you remain in the home if you meet certain financial threshold requirements.
This article outlined a few different types of personal bankruptcy. Do not let the wealth of information become overwhelming. Think back on what you just read. Take your time and think carefully about your decision before taking action.
If you realize that you do not qualify when it comes to the Homestead Exemption when you file for chapter 7 bankruptcy, then you might be able to use chapter 13 bankruptcy when it comes to your mortgage. Sometimes it is better to switch the whole Chapter 7 case to the Chapter 13 case. Speak with your attorney for advice on this.
Do you want to pay off your debt and be financially free for the first time in a long time? If so, the most critical factor to make that happen is to adjust your mindset. Orrin Woodward is one of the foremost authority in balancing different areas of life to build stronger, sustainable, and repeatable profitable business from home. He is also a co-founder of the LIFE business.