Filing for bankruptcy can be a difficult time in anybody’s life, and many aren’t sure what they should do to help them get through this time. They may not be sure what they are going to do next, and it can be horrible for a person’s credit score. Families might be in danger of losing some of their property. Successfully filing for bankruptcy can seem confusing, but a few simple tips and tricks can get people through.
Get A Lawyer
While it is possible to file for bankruptcy without an attorney, a legal professional will know all of the necessary steps to easily file. They will make the entire process less confusing, and make this a less frightening time for families. Many of them even offer pay as go options for those who have financial difficulties.
Organize Paperwork
Another important step is to get all of the financial paperwork organized, and keep everything from bank statements to credit card bills. These will come in handy when filing for bankruptcy, and they may be needed to prove the case.
Decide on a Type of Bankruptcy
When choosing between filing for chapter 7 and chapter 13 bankruptcy, people need to decide what works best for them. Chapter 7 will allow people to have all of their debt discharged, but they are going to lose their valuable property. With chapter 13 bankruptcy, they may be able to keep more of their property.
Never Lie
Nobody needs to lie when filing, as most people are going to qualify. Any property that is not listed will be seized, and leaving this information out is a crime. Always remember to disclose all important information, and avoid doing anything that could end in trouble.
Set Specific Goals
Remember that there are certain types of debt that can’t be discharged, such as student loan debt. Consider how this all going to play out, and what is going to be done different going forward. Those who are starting over fresh need to consider what they need to do in order to improve their situation.
Talk to Co-Signers
In many cases, those who are going through a bankruptcy aren’t the only ones involved. If there are other people who have co-signed on loans, they could be put in an uncomfortable situation during this bankruptcy. Talk to a lawyer about what the best option is, and how to create the best situation for both people.
Create a Complete List of Debts
Take the time to sit down and write out all of the current debts. That will let people know exactly what they are dealing with. It will be the basic basis for the bankruptcy in court, and it will make it easier to work everything else out. Always look into the rules regarding paying back creditors, as many states won’t allow it for ninety days.
This is always going to be a rough time, so take some time to deal with the stress as well. A lawyer could make this a less confusing process, and they will have your best interests in court. Always look for a lawyer who has a lot of experience in this field, and who has a good track record with other clients.
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