Going Through the Personal Bankruptcy Process

Anytime you are faced with the prospects of filing for personal bankruptcy, it is not a good situation, but there is some light at the end of the tunnel when you get through this process. Once the personal bankruptcy process has been completed you can start afresh with a clean slate. By following the tips presented here, you can transform your life through personal bankruptcy.

If you are planning to file for bankruptcy in the near future, don’t charge up your credit cards thinking that you won’t have to pay back the debt. In many states, there are rules about how much credit card debt and what kind, may be discharged in a bankruptcy. For instance, if you purchased luxury items such as an expensive new TV, within 6 months prior to filing, you may be obligated to pay that amount back. On the other hand, if you used your credit card to purchase groceries, or other necessities, the rules may be different. Be sure to ask your attorney for advice.

Make sure you carefully oversee your lawyer filling out all your paperwork. It is probably the case that they have many cases going on all at once and some of the smaller details of your case get lost. Of course, read all of the paperwork carefully, so that you can be sure that everything is completed and completed correctly.

Stay Positive During a Personal Bankruptcy

Stay positive. If you’ve had assets repossessed for non-payment, such as a house, a car, white goods, or even jewellery, you may be able to recover the assets after filing for personal bankruptcy. Should your personal property be repossessed within 90 days prior to your bankruptcy filing, there is a chance of reclaiming it. Consult with a lawyer who can advise you on what you need to do to file a petition.

Please note that the majority of bankruptcy lawyers offer some sort of free consultation. If it’s there; use it! Arrange meetings with a few of them and get a consensus. If you find that your appointment is handled within 10 minutes or less, or if have the appointment with the assistant and not the lawyer, or if you feel that you are being pressured to sign up straight away, go find somewhere else.

You need to understand which debts can be excused. You may be told that you need to pay a particular debt which cannot be discharged, however that information may be from a debt collector which is an unreliable source. Child support and Student loans cannot be discharged, but many others can.

Prepare a List of Debts and Creditors

Prepare a proper detailed list. Each and every one of your creditors and debts needs to be listed on your application. It doesn’t matter if a credit card is at zero and has no balance at all, it should still be listed. Any loans for recreational vehicles needs to be included also in your application. It is vitally important that there is full disclosure during this phase of your personal bankruptcy process.

As previously stated, the reasons for filing for bankruptcy are not generally a happy fairy tale. The initial process might be difficult and draining, especially after any debt consolidation process you may have already been through, but there’s something special waiting on the other side. Try using the tips in this article so you can make bankruptcy into the most positive experience possible.

Please follow and like us: