List each of your debts clearly and efficiently. This is what you will use when you file for bankruptcy, so make sure every debt you owe is on the list. You want to be as exact as possible about the amounts you owe; examine your records carefully. It is important that you take your time here; you need to ensure your figures are correct if you want to get these amounts discharged.
TIP! Before you file, make the choice to be fiscally reliable. This includes borrowing money from friends, you want to create a clean slate when you file for bankruptcy.
Whenever you file a petition for bankruptcy, do not leave out any information about your finances or assets. Forgetting to add these may cause your petition to be delayed, or even dismissed. The most meaningless, innocuous finance or expenditure needs to be listed when you file a claim. Anything, like a job on the side, assets, like cars, and any outstanding loans should be included.
There are two types of personal bankruptcy: Chapter 7 and Chapter 13. Make sure you know what each entails so you can make the right choice. In Chapter 7 bankruptcy, your debts are all eliminated. Any ties that you have with creditors will be dissolved. If however you enter Chapter 13, you will go into a five year repayment program prior to your debts dissolving entirely. You need to be aware of the pros and cons of each type of bankruptcy so you can correctly select the best choice for your situation.
TIP! Do not be afraid to remind your attorney of important specifics of your case. Many times a lawyer may forget a key detail; therefore, it is important to remind your lawyer of any key information.
If you are faced with the choice of filing for bankruptcy or using your emergency fund or retirement accounts to pay creditors, opt to file for bankruptcy. You shouldn't dip into your IRA or 401(k) unless there is nothing else you can do. Of course you will have to touch some of your savings to get through all of the hearings, but do not put out any money that you do not have to by law.
Do not take too long deciding that it is time to declare bankruptcy. Although it may be very difficult to admit that bankruptcy is the answer for you, it will be much harder to continue spiraling into a debt quagmire. The time to seek out professional advice on bankruptcy is as early as possible. Your financial situation will get complex very quickly, so wise counsel is more valuable the earlier you get it.
Filing bankruptcy has its good and bad points. No matter why you are filing, good information is needed. The information in this piece can make bankruptcy easier to handle. Use these tips during the process and feel a little better about it
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