Bankruptcy is a painful experience for anyone who must face it. Bankruptcy can indicate financial troubles, and is a generally embarrassing topic to discuss with others. Don’t give into it and be sure to use this advice to figure out what you need to know to avoid bankruptcy.
Be certain to gain a thorough understanding of personal bankruptcy by using online resources. The U.S. Some valuable resources include the U.S. Dept of Justice and American Bankruptcy Institute. The more knowledgeable you are, the more you can be sure that you are making the right decision and that you are taking the right steps to ensure your personal bankruptcy goes as smoothly as possible.
Avoid paying for a consultation with the bankruptcy attorney, but do ask many questions. When you arrive at a consultation ask plenty of questions. You should also seek free consultations from several attorneys prior to choosing one. Make your decision after all of your questions have been answered. There is no need to offer an immediate hire, so take your time. After your consultations, do some additional research on each attorney you consider qualified for the job.
Take advantage of the opportunity to consult with a number of bankruptcy lawyers who offer the first visit at no charge. Ensure that your meeting is actually with the attorney, not with a paralegal or an assistant. People in these positions are unable to offer legal advice. Look for a lawyer who you can relate to.
Make sure you know how to differentiate between Chapter 13 and Chapter 7. Go to a reputable website and research the benefits and detriments of each type of bankruptcy. If you’re really not sure how this all works after your research, meet with your lawyer and ask them prior to making a decision.
You could see about filing for Chapter 13 personal bankruptcy. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. Filing for this type of debt will ensure that you can hold onto your real estate and personal property, and will let you develop a consolidation plan to pay off your debts. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. Remember that if you fail to make any of the payments on time, the court may dismiss your case.
You do not have to surrender to bankruptcy. Take the information provided here and avoid filing if at all possible. Apply what you’ve learned here to make changes in your life that will not hurt your credit.