Current economic conditions are tough for many people. When there is a bad economy there are a lot of people losing their jobs and having problems with debt. Rising personal debt leads, in many cases, to increased bankruptcy filings. If you or someone you know is in jeopardy of going bankrupt, then read this article to figure out how to get out of this situation.
Prior to filing for bankruptcy, be sure you have investigated all of your alternatives. You have other options, including consumer credit counseling help. Bankruptcy will leave a permanent scar on your credit report and before you take this huge step, you should search through every available option first, to help try and limit the damage to your credit.
Never shirk on the truth in your petition for bankruptcy. You must avoid the temptation to conceal any valuables, money or other assets from the courts. If they find that you have lied, you may be faced with fines, penalties or the inability to file in the future.
If a personal recommendation comes your way, this should be a lawyer you focus on. There are a number of companies who may take advantage of your situation, so always work with someone that is trustworthy.
Be persistent in researching information about filing for bankruptcy and consult a qualified personal bankruptcy attorney. You can often have property returned to you. Autos, jewelry and even electronics that have been repossessed, could be returned. If the repossession occurred within 90 days from your filing date, it is possible that some of your property can be returned to you. Talk to a lawyer for help with the petition filing process.
When a bankruptcy is imminent, retain a lawyer immediately. With all the ins and outs of bankruptcies, it can be hard to grasp all the knowledge. A personal bankruptcy lawyer will be able to help you and ensure you are doing things the proper way.
Make sure that you understand the difference between Chapter 13 bankruptcy and Chapter 7 bankruptcy. If you file using Chapter 7 bankruptcy, you will get all your debts eliminated. This type of bankruptcy ends any relationship you might have with creditors. In a Chapter 13, though, you’ll be put on a payment plan for up to 60 months before being free of your debts. It’s imperative that you know the differences among the various categories of bankruptcy so that you are able to choose the wisest one for you.
There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. Spend time researching the advantages and disadvantages of filing for each one of these. Learning about bankruptcy is not simple, so call a bankruptcy attorney to make an appointment to ask questions.
The economy is not in great shape right now, and although things are slowly getting better, there are still large numbers of people out of work and in debt. If you don’t have steady income, you might still be able to avoid bankruptcy. Hopefully, after reading this article, you picked up on a few of the things that will help you avoid filing for bankruptcy. Hopefully better things await you in the near future.