Filing bankruptcy is a bit complicated. Several different types or “Chapters” of bankruptcy are available to you. Depending on the state of your finances and the type of debt that you have accrued, you may qualify for one type of bankruptcy, but not another. That’s why you should research personal bankruptcy prior to deciding whether or not you should file. This article will give you some of the important facts about bankruptcy.
You should check with the personal bankruptcy resources available online to educate yourself thoroughly before you begin the process. The United States D.O.J., the A.B.I and the N.A.C.B.A. are all useful organizations willing to provide educational material. The more you know about it, the better you are able to make the best decision for your situation and to make sure that the bankruptcy proceedings move forward with minimal setbacks.
Before you proceed with your personal bankruptcy case, review your decisions to be certain that the choice you are making is the right. Alternatives do exist, including consumer credit counseling. Before you take the drastic move of filling for bankruptcy and living with a long lasting bad credit history, make sure to consider using another way that may not be as damaging to your credit.
Make sure you know how to differentiate between Chapter 13 and Chapter 7. Learn the benefits and drawbacks of each type before deciding which is right for you. If there is anything that you don’t understand, go over it with your lawyer so that you can make the best decision.
When your income surpasses your bills, you should not be filing bankruptcy. Although bankruptcy may feel like a simple method of getting out of your large debt, it leaves a permanent mark on your credit history for up to 10 years.
Take action when the time is right. When you time things right, it does you good, especially when you’re filing for personal bankruptcy. Sometimes, filing as soon as you can is best, while other times, it is wise to get past the worst problems first. A lawyer is in the best position to evaluate your case and figure out when you should file for bankruptcy.
Do not think of filing for personal bankruptcy as a shameful thing. Filing for bankruptcy leads people to feel all sorts of emotions like shame, guilt and feeling irresponsible. Continuing to let yourself feel that way can damage your emotional health and does not benefit you in your endeavors to deal with your financial situation. Keep a positive state of mind to deal with your tough financial situation.
Going through bankruptcy is tough and can be mentally and emotionally draining. Be certain that you hire a competent lawyer to minimize the stress and anxiety you are under. Do not choose your attorney based solely on price. The cheapest attorney may not be the best, but the most expensive may not be the best either. Speak with trusted people, check the BBB and take advantage of the free bankruptcy attorney consultations. Try attending a hearing to find out how bankruptcy attorneys handle the situation.
Know the laws and guidelines about bankruptcy before you formally file. There are many traps in the bankruptcy laws that could trip up your case. Not only could your case be dismissed, but it may also affect your ability to refile. Prior to filing any papers, learn about your rights and responsibilities when filing for personal bankruptcy. Doing this can make the process simpler.
Now after reading the above article you see that bankruptcy must be thought over extremely carefully before going through with it. Should you determine that it is a wise move considering your personal circumstances, you need to consult with a lawyer who has handled many other bankruptcy cases.