If your valuable items are facing repossession, it can leave you feeling anxious or fearful. You can stop calls from debt collectors and resolve your financial issues if you consider filing for bankruptcy. This article will provide you with information to help you through this rough time.
One of the best ways to learn more about the bankruptcy process is to hit the Internet and look up reputable bankruptcy websites. The United States Department of Justice, the American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys, all provide valuable 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.
Always be honest when filling out paperwork. You can lose the right to file bankruptcy now or in the future if you try to withhold information about your assets and income. So it is critical that you disclose everything honestly to to avoid that and any other penalties the trustee might impose if he discovered your attempt to hide information from the court.
Don"t fear reminding your attorney of any specific details of your case. You cannot expect your lawyer to remember every important detail without some reminder from you. This is your future in their hands, so don"t be scared to mention it.
Before declaring bankruptcy, be sure you"ve weighed other options. For example, if you only have a little bit of debt, you might be better off if you went through consumer credit counseling. You may also find people will allow you to make lower payments. If that happens, get records of the debt modifications.
Learn the differences between Chapter 7 and Chapter 13 bankruptcies. If you file using Chapter 7 bankruptcy, you will get all your debts eliminated. Any ties you have concerning creditors will definitely be dissolved. 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. You need to determine which type of bankruptcy is right for you given your unique financial situation.
A free consultation is standard for bankruptcy attorneys, so shop around before settling on one. Be certain to speak with an attorney, not their paralegal or law clerk, since they cannot give legal advice. By meeting with several attorneys through a free consultation you will be able to choose which attorney you feel more comfortable with.
Understand the rights you have as a bankruptcy filer. Some bill collectors will tell you that your debts can"t be bankrupted. Only a few kinds of debt, like student loans or child support, are ineligible for bankruptcy. If you are told differently by a collector, research the information yourself. If you find they are in error, get the name of their company, phone number and any identifying info so you can report it to the attorney general in your area.
Filing bankruptcy should only be considered after the other options have been exhausted. Keep in mind that services that promise debt consolidation are usually scams that make your financial problems worse. Remember to use the tips from this article, and make good financial choices to avoid future debt.