Many individuals who find themselves in a difficult financial situation with a large amount of debt, may be able to benefit and improve their situation, by filing for personal bankruptcy. This article is loaded with tips on filing for personal bankruptcy and will help you decide whether or not filing for bankruptcy is the right thing for you to do.
Learn as much as you can about bankruptcy by going to informational websites. The United States Department of Justice and American Bankruptcy Institute are both sites that provide free advice. The more you know, you can be confident you are choosing the right thing and that you are taking the right road to make sure your bankruptcy proceeds as easily as possible.
Once you have filed for bankruptcy, you need to go over your finances and do your best to come up with a manageable budget. You want to do this so that you will not end up so deep in debt again that you will have to file for bankruptcy, again.
Decide whether you want to file for Chapter 7, or Chapter 13 bankruptcy. As an individual, you may do either one. Find out as much as you can about each type of bankruptcy, so you are able to make a choice that you can live with in the future.
See what you can find out. Each state does have varying laws on the subject of bankruptcy. Because of this, it is important that you meet with a specialized lawyer to discuss whether bankruptcy is right for you. Generally, initial consultations are free to you so you are able to determine which path you should head down at no cost.
Talk to other professionals before talking to a bankruptcy lawyer. Talk to financial advisers and credit counselors to see if bankruptcy is, in fact, your best option. A bankruptcy lawyer has a conflict of interest, so they are less likely to dissuade you from filing for bankruptcy. Finding an impartial, knowledgeable thirty party will give you the complete picture.
Many times, when a debtor files for Chapter 7 bankruptcy, their home can be protected. This is because of the homestead exemption. This exemption can protect the home, if the debtor owes below a certain threshold. Laws concerning this exemption do vary between states. Be sure to consult with a bankruptcy attorney before, assuming your home is safe from liquidation.
Always hire an experienced bankruptcy attorney before filing for bankruptcy. Bankruptcy is a lengthy, stressful process. A good attorney can make the process as fast, and painless as possible. Opting to file for bankruptcy without first seeking legal advice from a good attorney, could result in your bankruptcy petition being thrown out of court by a judge.
Filing for personal bankruptcy is a major life decision. Hopefully, armed with the knowledge you have learned from this article, you now know whether or not filing for bankruptcy is the right thing for you to do. Re-read this article several times to learn everything about bankruptcy, and you should be able to improve your financial situation.
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