Mention of the word, “bankruptcy” is enough to terrify many. The thought of losing their homes and cars and being overcome by debt is something they rightfully fear. The following advice will greatly help you if bankruptcy is a fear of yours.
Visit web sites and read information to learn as much as possible about the topic of personal bankruptcy. The United States Department of Justice, the American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys, all provide valuable information. By having more knowledge, you can make the right decision, as well as be sure you are ensuring that your personal bankruptcy case goes smoothly.
Don’t look at bankruptcy as a first step. Look at all the other options you may have first. You can find services like counseling for credit that consumers can use. Before you take the drastic move of filling for bankruptcy and living with a long lasting bad credit history, make sure to consider using another way that may not be as damaging to your credit.
If you are truly faced with bankruptcy, avoid blowing your savings or retirement money, trying to pay off debts. You should not use your retirement savings unless the situation calls for it. While dipping into your savings is likely to be necessary, avoid wiping it out completely to prevent leaving yourself with little financial security in the future.
Ask those you know if they have an attorney to recommend, instead of finding one on the Internet or in the phone book. 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.
Any bankruptcy consultation should be free of charge. Seek free consultations from a handful of lawyers, before deciding which one to hire. Decide which lawyer you like best buy reviewing all of the lawyers’ answers to your questions. Choose the lawyer who addressed your issues the best. Take your time before you decide to file after you meet with your lawyer. Take the time to meet with a number of attorneys.
Before declaring bankruptcy, ensure that all other options have been considered. For example, consumer credit counseling programs can help you by renegotiating your debts with your creditors into payments that you can afford. You may have luck negotiating lower payments by dealing directly with creditors, but be sure to document any get and new agreement terms in writing from each creditor.
You can take steps to hang onto your house. Filing bankruptcy does not necessarily mean that you will lose your house. Depending on whether the value of your home has decreased or if you have a second mortgage on the home, you may end up keeping it. There are also homestead exemptions which, depending on your other finances, may allow to remain in your home.
Filing for bankruptcy can be a very scary and intimidating experience. That said, the best antidote to fear is information, and this article has given you that in spades. You can improve your life and safeguard your family by following the personal bankruptcy advice presented here.