5 Pointers on Filing for Personal Bankruptcy
5 Pointers on Filing for Personal Bankruptcy
Here are some personal bankruptcy filing recommendations that might make the process a bit less daunting if you have tried everything else and still can not get your finances back on track and feel like filing for bankruptcy is your last option.
Creditors can not contact you or repossess your property once you have filed for bankruptcy protection. After your bankruptcy has been discharged, your creditors will no longer have any reason to contact you since either all of your debt has been eliminated (Chapter 7), or you have a repayment plan in place (Chapter 13). During the bankruptcy process, creditors cannot lawfully contact you.
The necessary procedures are as follows:
First things first: figure out if you need legal representation. Bankruptcy laws are complex and vary from state to state, thus it is recommended for most people. Take advantage of the chance to visit with multiple attorneys before hiring one. Get a fee schedule; this is different from inquiring about the total cost of your case; it will just tell you how much they will charge each hour in addition to any other fees that may apply.
2. Collect a complete inventory of your assets and debts and duplicates of your three credit reports. This will cover all of your debts, including secured and unsecured loans, medical bills, and a full rundown of your bank accounts. If you have any investments, be careful to identify them all and their current values.
Leaving anything out is a bad idea. Be forthright; else, you may find yourself in hot water with the law. Your home and vehicle are examples of personal property that you may be able to retain in a number of states. Both the amount of equity you may have in your home and the state in which you live affect this. There is a cap on how much equity you can have in your house and still be able to keep it in many states.
3. When compiling your documents, remember to include your most recent income tax returns, as well as all of your pay stubs from the past few months.
4. After you have engaged a lawyer, it is important to have a frank discussion regarding whether to file under Chapter 7 or Chapter 13. There are benefits and drawbacks to each type; your attorney can advise you on the one that is most appropriate for your situation.
Make sure you take the initiative throughout the process, even if you decide to retain legal representation. To avoid any unpleasant shocks, it is essential that you maintain constant communication with your attorney. Despite how exhausting and difficult it may be, you must attend each and every hearing.
A lot of folks will really just retain legal representation and walk away from the situation. I would not recommend that. You would assume that a good attorney with dozens of clients would have all the information concerning your case at their fingertips, but the truth is that they can easily forget or ignore important details. Be sure to pay close attention so that you can inform your attorney of any mistakes. Everything that matters to you, including your future, is at stake here.
The aforementioned advice might alleviate some of the anxiety associated with filing for personal bankruptcy once the time comes. Knowledge is power, as the old adage goes; put it to use by drawing on what you know to ease the burden of this challenging period.
Creditors can not contact you or repossess your property once you have filed for bankruptcy protection. After your bankruptcy has been discharged, your creditors will no longer have any reason to contact you since either all of your debt has been eliminated (Chapter 7), or you have a repayment plan in place (Chapter 13). During the bankruptcy process, creditors cannot lawfully contact you.
The necessary procedures are as follows:
First things first: figure out if you need legal representation. Bankruptcy laws are complex and vary from state to state, thus it is recommended for most people. Take advantage of the chance to visit with multiple attorneys before hiring one. Get a fee schedule; this is different from inquiring about the total cost of your case; it will just tell you how much they will charge each hour in addition to any other fees that may apply.
2. Collect a complete inventory of your assets and debts and duplicates of your three credit reports. This will cover all of your debts, including secured and unsecured loans, medical bills, and a full rundown of your bank accounts. If you have any investments, be careful to identify them all and their current values.
Leaving anything out is a bad idea. Be forthright; else, you may find yourself in hot water with the law. Your home and vehicle are examples of personal property that you may be able to retain in a number of states. Both the amount of equity you may have in your home and the state in which you live affect this. There is a cap on how much equity you can have in your house and still be able to keep it in many states.
3. When compiling your documents, remember to include your most recent income tax returns, as well as all of your pay stubs from the past few months.
4. After you have engaged a lawyer, it is important to have a frank discussion regarding whether to file under Chapter 7 or Chapter 13. There are benefits and drawbacks to each type; your attorney can advise you on the one that is most appropriate for your situation.
Make sure you take the initiative throughout the process, even if you decide to retain legal representation. To avoid any unpleasant shocks, it is essential that you maintain constant communication with your attorney. Despite how exhausting and difficult it may be, you must attend each and every hearing.
A lot of folks will really just retain legal representation and walk away from the situation. I would not recommend that. You would assume that a good attorney with dozens of clients would have all the information concerning your case at their fingertips, but the truth is that they can easily forget or ignore important details. Be sure to pay close attention so that you can inform your attorney of any mistakes. Everything that matters to you, including your future, is at stake here.
The aforementioned advice might alleviate some of the anxiety associated with filing for personal bankruptcy once the time comes. Knowledge is power, as the old adage goes; put it to use by drawing on what you know to ease the burden of this challenging period.
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