Is Personal Bankruptcy The Right Choice For Me
Filing for personal bankruptcy may seem like the best way to deal with a mountain of debt.
However, if the debt is due to uncontrolled spending, the problem will not go away, just
because of a bankruptcy filing. Continue reading for some insights on personal bankruptcy to
help educate yourself on what this legal tool can and cannot do.
Be prepared to complete some mandatory courses. When you file for bankruptcy, the court will
require that you successfully complete two mandatory courses, a credit counseling course and
a debtor education course. Both of these courses can be completed online for a nominal fee,
and while they are not too difficult, it is important that you are prepared for them.
Consider filing Chapter 13 rather than Chapter 7, if you are facing foreclosure. A Chapter 13
bankruptcy allows you to create a restructured payment plan which includes your mortgage
arrears. This will allow you to get your mortgage payments current, so that you won't lose your
home. Chapter 13 doesn't require you to turn over property, so you don't have to worry about
the homestead exemption, either.
Be safe and hire an attorney for help. There are many websites these days that claim to walk
you through the process of filing bankruptcy on your own. It is cheaper than using an attorney
to get you through this time, but it leaves a lot of room for error. This is not something that you
want to take chances on.
A good personal bankruptcy tip is to be, careful about what you post online. Something as
harmless as Facebook can came back to haunt you if, you're planning on filing for bankruptcy.
Lawyers have been known to check Facebook profiles in an effort to determine whether they're
committing adultery, or have hidden assets.
If you have made the decision of filing for personal bankruptcy, don't run off and try to
purchase a bunch of things, such as clothing and jewelry, with your credit card before filing. You
can't cheat the system. You will oftentimes still be required to pay off the debt that you have
A good personal bankruptcy tip is, to not only focus on filing for bankruptcy if you're in a tough
situation. Think ahead, so that you can prevent this from happening in the future. You need to
change your spending habits so, that you don't end up knee deep in debt again.
As you are working to make the decision to file for personal bankruptcy, remember that it will
affect your life for at least the next ten years. Bankruptcy should be used as a last resort and
the decision to file not taken lightly. Carefully weigh your options before you make any
When you plan on filing for bankruptcy, you want to protect any assets you can legally protect.
During the process, your creditors are likely to liquidate assets of yours whenever possible to
fulfill your financial obligations to them. Some assets are untouchable though, so make sure
you take the proper steps to protect them. Your retirement account and your home are both
untouchable when it comes to liquidation.
When you are about to file for bankruptcy, be sure you have all the financial information at
hand. Even things that you do not use, should be listed in a bankruptcy filing. These could
include, income from even small jobs, any vehicles listed in the filer's name whether or not they
use them, and any pending lawsuits.
As you can probably see, personal bankruptcy is not a magic pill that makes all of your debts
just vanish. However, in certain situations, it is a viable option. Managing your finances takes
discipline and a certain amount of financial knowledge. Hopefully, this article has shed some
light on personal bankruptcy, and whether it makes sense for you.