Filing for personal bankruptcy is a serious decision. Therefore, it is very important to understand what you are doing when you file for bankruptcy. If you want to take the next right step, simply follow that tips presented here. Whatever tough decisions you must come to face with, research can help you find your way!
Once a person’s debts outstrip his or her ability to repay them, bankruptcy may be the only option left. When you are faced with this issue, begin to familiarize yourself with your state’s laws. Laws differ from one state to the other. In some areas, your residence may be completely exempt, but in others, it will not be. Make sure you know the laws where you live before you file.
Check the accuracy of all information before it is filed. Don’t assume that he’ll remember something from a month ago; tell him again. Speak up if something is troubling you, as this is your future we are talking about here.
Before declaring bankruptcy, be sure you’ve weighed other options. For example, you may want to consider a credit counseling plan if you have small debts. It may also be possible to get lower payments, but if you do, be sure to obtain records for any consensual debt modifications.
The two main kinds of bankruptcy are Chapter 7 and Chapter 13. Make sure you understand them so you know what is best for you. Under Chapter 7 type bankruptcy, all debts are forgiven. Your responsibilities to your creditors will be satisfied. Chapter 13 is different, though. This type of bankruptcy entails an agreement to pay off your debts for five years prior to wiping the slate clean. To make the wisest choice, you will need to understand the consequences of each of these two options.
Since it is possible to obtain a free consultation from the majority of bankruptcy lawyers, meet with a few of them prior to choosing one. Be certain to speak with an attorney, not their paralegal or law clerk, since they cannot give legal advice. Shopping around for a lawyer can help you find someone with whom you feel comfortable.
As you can see by now, there are different ways of filing for personal bankruptcy. Do not get overwhelmed by the plethora of information available to you. Take some time to figure things out. By taking your time, you will make the best decisions.