Hard Time Understanding Bankruptcy? Read This Information
It is an unfortunate fact that the topic of bankruptcy is quite common nowadays. Not only the economy, mind you, but people's spending habits are also to blame for the increase in claims filed. However, before you make the decision to file for personal bankruptcy, you should understand the filing process and thoroughly investigate whether it is the right choice for you. Keep reading for the knowledge you need.
Learn as much as you can about bankruptcy by going to informational websites. The US Department of Justice, NACBA, and American Bankruptcy Institute websites are all great places to go for up-to-date information. The greater your body of knowledge, the better prepared you will be to make the decision of whether or not to file and to make certain that if you do file, the process is a smooth one.
Click here When you feel certain that you must file for personal bankruptcy, refrain from squandering your life savings to pay off unsecured debt. Unless there is no other choice a retirement account should not be used. You may have withdraw from your savings every now and then, but try to leave yourself some financial security for the future.
It should go without saying, but refrain from lying in your bankruptcy filings. You must avoid the temptation to conceal any valuables, money or other assets from the courts. If they find that you have lied, you may be faced with fines, penalties or the inability to file in the future.
Make sure you keep reminding your attorney about any important details in your case. Don't assume that they'll remember something important later without having a reminder. Remember that you're the boss. You're paying your lawyer, so you should not be afraid to have your say. After all, the quality of your life hangs in the balance.
Be honest when filing for bankruptcy. Don't hide liabilities or assets, as they'll come back and haunt you. Penalties may include fines, imprisonment or denial of the filing. Put everything out on the table and craft a wise plan for handling the situation the best you can.
Understand the differences between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy. There is a wealth of information online about each type of bankruptcy and their respective pluses and minuses. Once you have done your own research, be sure to review your findings with your lawyer, who is the expert. This way, you can be sure of making a well informed choice.
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. With a consistent income source and less than $250k in debt, try filing for Chapter 13. This allows you to keep possession of your real estate and property and repay your debt through a debt plan. Generally, this stays in effect for up to 5 years. Afterwards, your unsecured debts clear from your accounts. However, if you were to miss a payment, the court would dismiss your case right away.
If you are going to be filing for bankruptcy, think about filing Chapter 13. In most states, Chapter 13 bankruptcy law stipulates that you must have under $250,000 of unsecured debt and a steady income. This lets you keep any real estate and personal property while you repay all your debts through a consolidation program. This plan usually lasts from 3 to 5 years, after which, you will be discharged from all unsecured debt. Keep in mind that missed payments will trigger dismissal of your case.
As stated in the article from above, bankruptcy is in the news a great deal because the economy is in such a poor state. So, use what you learned today so that you know what decisions to make while you contemplate filing for bankruptcy.