Whatever led you to declare bankruptcy is probably very sad, but that doesn’t mean that you can’t have a better life after bankruptcy. The bankruptcy laws allow you to have a second chance at building your credit and meeting all your financial responsibilities. Keep reading to see how bankruptcy can actually give you a new lease on life, rather than function as a permanent financial albatross.
Make sure that you have all of your financial paperwork with you when, you go to meet with your attorney about bankruptcy. They should tell you what you will need to bring. Generally, the paperwork will include car loan documents, home loan documents, and various financial records like credit card bills.
Do not hesitate to remind your lawyer of any details regarding your case. Don’t assume that he’ll remember something from a month ago; tell him again. Be as open as you can be to make sure your bankruptcy goes as well as possible.
If you have had to file for bankruptcy, you should assess the reasons why to make sure that you do not end up in that situation again. For example, if it was for paying too many bills late, you can set up automatic payments so you will not have that problem in the future.
When it comes time for you to hire an attorney to deal with your bankruptcy, be sure to find one that has a ton of experience with personal bankruptcy. Learn about the charges you will have to pay, and how many of their associates will be working on your case.
As tempting as it may be, do not run up credit cards right before filing for bankruptcy. Many times, people purchase expensive items, like jewelry, appliances and furniture right before they know they are going to file for bankruptcy. Most of the time, they are still going to be responsible for paying back this debt.
Include all financial information when filing for bankruptcy. Things that may not seem significant to you may be very important. Include all assets like: vehicles, every cent of income, retirement account, stocks and anything else that has value. Furthermore, include any lawsuits that are pending against you or other parties.
Find out as much as you can about the individual laws in your state. There is a lot of information about there, but every state has its particular laws that people are subject to. You may have a lawyer, but it is important that you know about this as well so you can make better decisions.
Be sure you know how Chapter 7 and Chapter 13 differ. In Chapter 7 most of your outstanding accounts will essentially be erased. All creditor relationships will be severed. In a Chapter 13, though, you’ll be put on a payment plan for up to 60 months before being free of your debts. Both options have advantages and drawbacks, so do your research before deciding.
Filing for bankruptcy does not wipe out all of your debts. It does not stop you from having to pay alimony, child support, student loans, tax debt and most types of secured credit. You will not be allowed to file if these are the only types of debt that you have on record.
It’s a good idea to meet with a number of bankruptcy lawyers before settling upon one. The majority of them offer free initial consultations. It is important to meet with the actual lawyer, because paralegals or assistants cannot give you legal advice. Interviewing multiple attorneys is a good way to find the best fit.
As stated in the above article, anytime someone is forced into bankruptcy is never a happy situation. Afterward, however, you can have an easier time. Actually, if you use the advice and ideas from this article, you will be able to turn bankruptcy into a turning point for your life.