These days, the process of bankruptcy is an all to common occurrence. This is due to the current financial climate. Find out about all the personal bankruptcy laws in your state before filing. Keep reading for the knowledge you need.
Millions of Americans file for bankruptcy each year because they can not pay their bills. When you are faced with this issue, begin to familiarize yourself with your state’s laws. Bankruptcy laws vary from state to state so it is important to do your research. For instance, in some states you can keep your home and car, while other states prohibit this. Be sure to have some familiarity with the law in your jurisdiction.
As bankruptcy appears on the horizon, don’t take your savings or retirement accounts to try to pay off all your bills. You shouldn’t dip into your IRA or 401(k) unless there is nothing else you can do. Your savings accounts offer valuable financial security so try to leave them intact.
Never lie about anything in your bankruptcy petition. Do not try to shield some assets or income from your creditors. This can get you in serious trouble and prevent your bankruptcy petition altogether.
Make sure you keep reminding your attorney about any important details in your case. Many times a lawyer may forget a key detail; therefore, it is important to remind your lawyer of any key information. Be as open as you can be to make sure your bankruptcy goes as well as possible.
Before you decide to file bankruptcy proceedings, determine which assets will be safe. The Bankruptcy Code has lists of various asset types that are exempt during the process. You need to read the exemptions for your state, so you know what property you can protect. You wouldn’t want to unexpectedly lose any possessions you treasure.
There is hope! There may still be way to get repossessed items back after you file for bankruptcy. If your property has been repossessed less than 90 days prior to your bankruptcy filing, there is a good chance you can get it back. Speak with a lawyer that will provide you with guidance for the entire thing.
Learn the differences between Chapter 7 and Chapter 13 bankruptcies. Chapter 7 bankruptcy is intended to wipe out all outstanding debts. Any ties you have concerning creditors will definitely be dissolved. A Chapter 13 filing involves a repayment plan, though. Typically, you will make a partial payment against your debts over the next 60 months before the balance of the debts is lifted. It’s important to know what differences come with every type of bankruptcy. This will let you find out what’s best for you.
It is important to protect your home when filing bankruptcy. Filing for bankruptcy does not mean you have to lose your home. You might be able to keep your home, for instance, if you have two mortgages or if your home has lost its value. Additionally, some states have homestead exemptions that might let you keep your home, provided you meet certain requirements.
As said previously, bankruptcy is a popular topic due to the declining economy. So, use what you learned today so that you know what decisions to make while you contemplate filing for bankruptcy.