Anytime you are faced with the prospects of filing for bankruptcy, it is not a good situation, but there is some light at the end of the tunnel when you get through this process. Wiping the slate clean means having a new lease on life. Keep reading to handle the bankruptcy process in a way that is a rebirth and not a financial Armageddon.
You should check with the personal bankruptcy resources available online to educate yourself thoroughly before you begin the process. The US Department of Justice and American Bankruptcy Institute are two such places to look. The more you know, you can be confident you are choosing the right thing and that you are taking the right road to make sure your bankruptcy proceeds as easily as possible.
Prior to filing for bankruptcy, determine which assets, if any, are exempt from being seized. The Bankruptcy Code contains a list of various assets that are excluded from bankruptcy. You need to read the exemptions for your state, so you know what property you can protect. If you don't read this list, there is a chance that you might get nasty surprises when they take your things away.
Need A Fresh Start? Read These Tips Now! Never shirk on the truth in your petition for bankruptcy. Don't hide income or assets from your lawyer or the bankruptcy trustee or you may find yourself in legal trouble.
Make certain that you comprehend the differences between Chapters 7 and 13. In Chapter 7 most of your outstanding accounts will essentially be erased. Any debts that you owe to creditors will be wiped clean. With a chapter 13 bankruptcy, a 60 month period of time will be established in which you will repay the as much of your debt as possible. Following the 60 month period of time, the remainder of your debt will be excused. You need to be aware of the pros and cons of each type of bankruptcy so you can correctly select the best choice for your situation.
Be sure you know what the difference between Chapter 13 and Chapter 7 bankruptcy is. Weigh all the information you can find on- and off-line to make an educated decision. If there is anything that you don't understand, go over it with your lawyer so that you can make the best decision.
If you are earning enough to cover your bills, don't file for bankruptcy. Sure, bankruptcy can get rid of that debt, but it comes at the price of poor credit for 7-10 years.
If you really want to keep your vehicle, speak with your lawyer about possible choices. In many cases, Chapter 7 bankruptcy can lower your payments. You need to have bought your car 910 days before you file, have a loan with high interest and you're also going to need a good work history.
Make sure you understand your rights as you file for bankruptcy. Bill collectors can try to scare you into believing that your debt will not be cleared. You should know that only a few debts cannot be erased, including student loans and child support. If a bill collector attempts to say their bill cannot be discharged, look it up. If they are wrong, report them.
The road to personal bankruptcy is a sad and difficult one. Yet after bankruptcy, you can be happy again. Using the advice you have found here, bankruptcy can be the beginning of a new, exciting chapter in your life!