1. Are You Looking To Avoid Bankruptcy? Try These Tips! It's hard to make the decision of filing for personal bankruptcy; however, sometimes there's no choice. When going through this process it is best you have a lot of knowledge on what is about to take place. Keep reading for some solid wisdom from people who have themselves gone bankrupt. Individuals often seek to file for personal bankruptcy protection if their debts exceed their ability to repay them. If this sounds familiar, you should read up on the bankruptcy laws in your state. When it comes to bankruptcy, states have varying laws. For instance, in some states, you can't lose your home to bankruptcy, while in other states, you can. It is important to be cognizant of the laws in your state before filing for bankruptcy. Make sure you are always providing honest documentation whenever you have to file for personal bankruptcy. Not hiding any assets or income is essential for avoiding possible penalties and your ability to re-file at some point in the future. Know the differences between Chapter 7 and Chapter 13 bankruptcy. Every one of your debts will be gone if you decide to go with Chapter 7. All happenings with creditors will disappear. 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. If you are considering filing for personal bankruptcy, be certain that this is really the right course of action for you. It might be possible to consolidate some of your debt instead. There is not easy process associated with personal bankruptcy. It will also limit your ability to get credit for the next few years. Personal bankruptcy should be undertaken as a last resort when no other workable options are available to you. Bankruptcy should not be filed by anyone who makes more than their bills cost. Although you may see bankruptcy as a free pass to eliminate your debt, if you can slowly whittle away at your debt with your income, it will be much better than killing your credit score with a bankruptcy filing. It is important to look at your financial situation from all possible angles before you decide to file for bankruptcy. Instead of rushing into bankruptcy, a good idea is too speak with an attorney who may be able to get your interest rates reduced or help get you on a debt repayment program. If a foreclosure is your reason for filing look into your options with your bank first, such as a loan modification. This type of plan allows your lender to work with you eliminating charges, extending your loan, and lowering interest rates to help you pay back the loan without drowning in debt. When all is said and done, creditors want their money and find repayment plans preferable to not getting paid at all. Talk with your lawyer about getting lower payments for any car you wish to keep. In many cases, Chapter 7 bankruptcy can lower your payments. There are qualifications, such as the loan being high interest and a good work record for this option. Before you make the decision to file Chapter 7 personal bankruptcy, take time to think about anyone it could affect. Speak to an attorney or read the bankruptcy laws in your state to find out if certain loans can be excluded from your filing. However, your creditors will be able demand that your co- debtor pays the debt off in full.
2. Know the bankruptcy code backwards and forwards before filing. For instance, you are not allowed to move assets from your name to someone else's for a year before you file. Maxing out your credit cards immediately before filing is also illegal. When filing for bankruptcy, ensure you have listed all of your financial obligations. Failing to disclose all of your financial information can cause your bankruptcy petition to be dismissed, or, at the very least, delayed. It does not matter what you think of your financial situation, put the sum amount either way. Include any income from jobs that you do on the side or assets, such as property and vehicles. Consider all available options before deciding to file for personal bankruptcy. Think about credit counseling, for example. May non-profit companies are available to help you. They will liaise with those you owe money to and try to get better payment options opened to you. The payments you make go to the credit counseling company, and they send that money to your creditors. In difficult financial situations, filing for bankruptcy is sometimes unavoidable. After reading this article, you now know how people who have actually experienced bankruptcy got through the process. You will find this experience less difficult knowing that others have done it before you and survived by following these tips.