One common contributing factor for bankruptcy is the financial consequences of filing for divorce, so make sure to consider your plans carefully. Many people find themselves filing for bankruptcy after a divorce. Rethinking a plan to get divorced is always a good choice. Look at all the alternatives to bankruptcy before filing. There are many recouses available to help you lower your payments and get back on track. If foreclosure is imminent, see if your loan can be altered at all through a modification plan. The lender is able to help you in a number of ways, such as reducing interest rates, eliminating late charges, and even lengthening the loan, giving you more time to pay. When push comes to shove, creditors want their money, and they are willing to make concessions to get it and prevent the debtor from declaring bankruptcy.
No good will come of trying to conceal your assets or your liabilities in the bankruptcy process; you want to be scrupulously honest when you declare bankruptcy. Whomever you use to file with must know everything there is to know about your finances, both good and bad. Being honest is both the right thing to do and, moreover, it is required by law.
Think about the different types of bankruptcy, and choose the one that suits your situation. You may have more than one bankruptcy option available to you. Study and research all of the different bankruptcies before deciding which one is best for you. Weight the positives and negatives of each one, along with getting a second opinion from a financial pro before choosing one.
It is important to know how Chapter 7 filings differ from Chapter 13 filings. Take the time to learn about them extensively, and then figure out which one will be best for your particular situation. Do not hesitate to have your lawyer explain any details that seem difficult to grasp. This will help ensure you make the right choice when filing. Find a bankruptcy lawyer with a wonderful reputation. Once you’ve found one, ask if they offer a free consultation. Put your financial records together and bring them to this lawyer. Once you arrive your attorney can advise you on the proper steps to take to file for bankruptcy.
Find out more about Chapter 13. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. This lasts for three to five years and after this, your unsecured debt will be discharged. Remember that if you even miss one payment that’s due under this plan, the court could dismiss the whole case. When you speak with a bankruptcy attorney, it is important that you tell him everyone that you owe significant amounts of money too. That means you need to tell him about credit cards, lenders and hospitals, but you also have to mention money you need to repay to friends and family.