Sound Advice For Getting Through A Bankruptcy
Making the choice to file for personal bankruptcy is something that many find difficult, if not
excruciating. But, armed with the right knowledge and information, it is possible to view the
process as the best way to achieve a needed fresh start in your personal finance, and not
something that must be dreaded. Put the tips in this article to work today and gain new
perspective on what bankruptcy can do for you.
Laws regarding bankruptcy vary by state, so you need to find a lawyer that can walk you
through the entire process and help keep your rights protected. In several cases, you can keep
your car and your home, but it's your attorney that will tell you what rights you have, what you
can keep, and what you will need to surrender.
Be aware that there are two kinds of bankruptcy. There is Chapter 7, and Chapter 13. Chapter 7
can keep the filer from paying debts entirely. This option is generally for those that have debts
so high or income that is so low that, they cannot afford a payment plan. Chapter 13 lets the
filer get a payment plan so that they can repay all, or parts of their debt between three and five
Gambling losses are another thing that must be listed on your application for bankruptcy. Any
monies lost twelve months prior to filing must be disclosed. Failure to disclose could cause you
to face perjury charges. If you are found guilty, you could face time in jail and dismissal of your
Be aware of bankruptcy laws in your area. The requirements, and rules surrounding filing for
bankruptcy vary from state to state. Be sure to study the laws specific to your area before doing
anything. If necessary, take the time to hire a lawyer. It's important that you fully understand
If you are going through personal bankruptcy proceedings, take an occasional walk outside with
a friend or loved one. Remember that while you have been through tough financial times,
yourself worth is not based on your net worth. Keeping your wits about you will help you stay
composed enough to make sure that bankruptcy works for you instead of against you.
Before opting to file for personal bankruptcy, try to pay off all of your debts. Some creditors are
more than willing to work with you and you should do so before deciding to file for bankruptcy.
This way, you can avoid all of the problems that are associated with bankruptcy.
A great tip for filers of personal bankruptcy is to thoroughly prepare for the initial meeting with
the bankruptcy attorney. By assembling every piece of relevant financial documentation,
including mortgage documents, auto finance agreements, credit card statements, tax records
and bank statements, you can be certain that your bankruptcy petition and supporting
documentation includes all information required for a comprehensive filing.
Talk to friends and family about helping you avoid bankruptcy. For many people, bankruptcy is
the final option. However, a lot of people don't even bother to ask family and friends for help. If
you have a strong network of loved ones, they might want to help you out. Just ask them.
It is certainly true that the prospect of bankruptcy is a topic feared by many. Much of the worry
and hesitation surrounding the filing personal bankruptcy stems from insufficient knowledge on
the part of consumers. By studying the guidance and advice in the piece that follows, it is
possible to better understand what bankruptcy means and does for debtors, and how best to
optimize the process.