It’s not uncommon for people to look down on others who choose bankruptcy, but one day find themselves in the same situation. A simple change of circumstances, such as job loss, can quickly change a life to the point where bankruptcy may be the only way out. No matter how you found yourself looking at bankruptcy as an option, continue reading so that you can learn how to move forward.
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. Withholding or lying about certain information can seriously worsen your financial situation. It could lead to being unable to file for bankruptcy or even legal trouble.
Be completely honest whenever you file for personal bankruptcy. Hiding any asset or liability is a risk that will bite you in the end. Good or bad, you must tell your bankruptcy attorney everything about your financial situation. Do not leave anything out and come up with smart plan to manage the situation you are dealing with.
Investigate any new laws before deciding to file a bankruptcy. Bankruptcy laws change a lot and before making the decision to file, you need to know what you are getting yourself into. All of these changes will be addressed on the state’s legislative site. You can also contact them directly by phone or office visit.
Protect your house. Losing your home is thought of as common in bankruptcy cases, but it is by no means inevitable. Depending on if your home’s value has gone down or if it has a second mortgage, you might be able to keep it. It can be worthwhile to understand the homestead exemption law to see if you qualify to keep living in your home under the financial threshold requirements.
If you are going to be filing for bankruptcy, think about filing Chapter 13. If your source of income is regular and your unsecured debt is less than a quarter million, Chapter 13 bankruptcy is something you are able to file for. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. Lasting anywhere from three to five years, this plan will allow you to be discharged from unsecured debt. Bear in mind that if you miss a single payment that is due under your plan, the entire case will be dismissed by the Court.
If you have tried everything to save your finances but have been unable to find a solution, it might be necessary for you to file bankruptcy. Don’t carry the weight of the world on your shoulders. If the circumstances that brought you here were not within your ability to control, let go of the stress and guilt associated with them. You may be better prepared for the bankruptcy process after you’ve taken taken a look at this article.
