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Why Personal Bankruptcy Is The Wrong Thing For Some

Filing for bankruptcy is not a pleasant experience. Bankruptcy can be a bad sign and can be embarrassing to tell others about in regards to your financial status. Follow the steps presented here to determine whether or not you need to file for personal bankruptcy at all.

Consider all options before deciding to file for personal bankruptcy. You have other options available like consumer credit counselling services. Bankruptcy leaves a permanent mark on your credit history, so before you take such a large step, you want to exhaust all other options so that the future effects on your credit history are as minimal as possible.

Make sure you are aware of all your options before you file for bankruptcy. One option to consider is credit counseling. Various non-profit companies are out there to give you assistance. These organizations can work with creditors to lower your payments and interest rates. You pay them and then they pay the creditors.

After your initial filing, take time to enjoy yourself a bit and get your mind off of it. Many debtors stress-out during the time of filing. Depression can ensue from the stress if action isn’t taken. Once your petition is in the hands of the judge, all you can do is wait.

Do some research about laws and legislation before filing. Bankruptcy law has changed substantially in recent years, and therefore you must understand how such changes may affect your situation. To know what these changes are, go to your state’s website or contact the legislative offices.

Do your research ahead of time to find out if you permitted to get a Homestead Exemption with Chapter 7. If you don’t, the possibility may exist for you with Chapter 13. Your attorney should be able to tell you whether it is advantageous for you to convert your Chapter 7 filing into a Chapter 13.

You do not need to lose all your assets just because you file for bankruptcy. You get to keep your personal property. This includes items, such as jewelry, clothes, household furnishings, electronics, etc. This depends on the laws in your state, the bankruptcy type for which you file, and your unique finance situation, but it may be possible to retain your home, car and other large assets.

Most bankruptcy lawyers give free consultation, so try to meet with these types of lawyers before deciding on hiring one. Make sure that you meet with an actual lawyer and not an assistant or paralegal, as these people are not allowed to provide legal advice. By meeting with several attorneys through a free consultation you will be able to choose which attorney you feel more comfortable with.

Make sure that everything in your bankruptcy petition is completely accurate. Hiding things from the court can get your case dismissed with no option to refile. Make sure all assets and income sources are accounted for when you file your petition. This shows the court that you are working to resolve the matter as quickly as possible.

Before filing a bankruptcy claim, make sure that your home is well protected. Bankruptcy filings don’t necessarily have to end in the loss of your home. It may be possible to keep your home if the value has depreciated, or there is a second mortgage. You are still going to want to check into homestead exemption either way just in case.

You do not have to surrender to bankruptcy. Using the tips you just read, you can create a financial plan that will help you avert this terrible financial fate. Begin today with what you learned here and soon you will see positive changes in your financial situation, so you can avoid the harmful process of filing for bankruptcy.