Bankruptcy is very common in today’s economic climate. There are many who recognize the role the economy has played in this epidemic. Before filing for personal bankruptcy, take some time to understand the entire process and applicable laws so that you can make wise decisions. The following article will get you up to speed on all things concerning bankruptcy.
Once you have filed for bankruptcy, you will have to do your best to build your credit all over again. Do not be tempted to allow your credit account to have nothing on it, so it will appear to be fresh. This will send a bad signal to anyone who is looking at it.
Do not hesitate to remind your lawyer of any details regarding your case. You cannot expect your lawyer to remember every important detail without some reminder from you. Remember that you’re the boss. You’re paying your lawyer, so you should not be afraid to have your say. After all, the quality of your life hangs in the balance.
Include all financial information when filing for bankruptcy. Things that may not seem significant to you may be very important. Include all assets like: vehicles, every cent of income, retirement account, stocks and anything else that has value. Furthermore, include any lawsuits that are pending against you or other parties.
Consider other alternatives before filing for bankruptcy. For example, you may want to consider a credit counseling plan if you have small debts. You might also be able to negotiate lower payments yourself, but make sure that you get written records of any debt modifications to which you agree.
If you choose to file Chapter 13 bankruptcy, be sure that the amount of your monthly payments is within your reach. If you set a payment that is more than you can afford, you may face a court order of liquidation of all of your assets. You will lose everything by falling behind on payments.
Put forth the effort to grasp the distinctions between Chapter 7 and Chapter 13 bankruptcies. There is a wealth of information online about each type of bankruptcy and their respective pluses and minuses. Do not hesitate to have your lawyer explain any details that seem difficult to grasp. This will help ensure you make the right choice when filing.
If you have a credit card with your local credit union, it may be one that does not have to be given up due to bankruptcy. Check with your credit union to find out if the line of credit will continue after the bankruptcy is final. You still must be sure to include it on your application with your other debts.
Learn about adversarial proceeding. This is what results when you take out cash advances or make big ticket purchases on credit cards within ninety days of your filing date. You could very well be held responsible for the funds that have been withdrawn or purchases made once the bankruptcy is final.
As you are no doubt aware, bankruptcy is much talked about in today’s economy. In order to ensure the best decisions are made, use the tips in this article.