How To Rebound After You File Bankruptcy
There are many different reasons why the debt could have piled up on you and became overwhelming. What’s important now isn’t how it happened but rather what you intend on doing in order to handle it. The point of bankruptcy is to have a clean slate and a fresh start. This article will show you how you can make the best of bankruptcy rather than dwelling on the circumstances that got you there in the first place.
Try going to a personally recommended bankruptcy lawyer instead of using a phone book or the Internet. There are so many dime-a-dozen companies out there who make it a practice of preying on financial desperation. You need to make sure your bankruptcy goes smoothly, so find someone you know you can trust.
A critical tip in filing personal bankruptcy is to steer clear of making payments to creditors, in advance of filing a petition, in an attempt to satisfy individual debts in full outside of bankruptcy court. Payments to family members and creditors made within defined periods of time prior to a bankruptcy filing can be voided and can jeopardize the chances of receiving a discharge of all debts in the case.
Be brutally honest when you file for bankruptcy, as hiding assets or liabilities, will only come back to haunt you. Penalties may include fines, imprisonment or denial of the filing. Divulge all of your information so that you and your lawyer can devise the best strategy for dealing with your situation.
As tempting as it may be, do not run up credit cards right before filing for bankruptcy. Many times, people purchase expensive items, like jewelry, appliances and furniture right before they know they are going to file for bankruptcy. Most of the time, they are still going to be responsible for paying back this debt.
Find out what the homestead exemption limit is in your state before filing for Chapter 7 bankruptcy. If you have too much equity in your home to qualify for the exemption, you could lose your house in the bankruptcy. You can’t change your mind once you’ve begun the process, so make sure you will be able to keep your home before you file.
Before you decide to file for bankruptcy, be sure to obtain a free consultation with a bankruptcy attorney. Depending on where you live, you have the right to speak to an attorney before filing. Any good attorney will offer a first appointment free. This is an important consultation, as you will need the answers to many questions. These may include: attorney fees, what type of bankruptcy to file, and what types of information, paperwork you will need to provide. Most importantly, an attorney will be able to determine if filing for bankruptcy is the right decision for you.
As mentioned, the events that cause bankruptcy are not happy. Even though that is the case, you should not allow it to depress you in any way. Actually, if you use the advice and ideas from this article, you will be able to turn bankruptcy into a turning point for your life.