Many people look down on people who have to file for bankruptcy, and then find themselves in the same situation. Changing circumstances, like losing a job or divorce, can create a situation where claiming personal bankruptcy is the only choice possible. If you find yourself in this position, the following article will be of great assistance.
Do some research to find out which assets you could lose by filing for personal bankruptcy. The Bankruptcy Code provides a listing of the various asset types that are not included in the bankruptcy process. You can determine exactly which of your possessions are at risk by consulting this list before you file. If you do not read this list, you could be in for some nasty surprises in the future, if some of your most prized possessions are seized.
Honesty is of utmost importance during your filing, even though it may be tempting to “pad” your answers a little. You might feel tempted to not declare certain assets in your bankruptcy in order to protect them from forfeiture, but if you’re found out, the process could take longer, or worse, you might be banned from filing for bankruptcy completely.
Don’t pay for an attorney consultation and ask him or her anything you want to know. Free consultations are standard practice among bankruptcy lawyers, so interview multiple candidates before making a final decision. Only make a decision after you have met with several attorneys and all of your concerns and questions have been addressed. You need not decide right away. So you have sufficient time to speak with a number of lawyers.
Learn about teh differences between Chapter 13 and Chapter 7 bankruptcy. Take the time to learn about them extensively, and then figure out which one will be best for your particular situation. If you are confused by what you find, be sure to ask your attorney to explain anything that is unclear before you make your decision about filing.
Now you should be aware that there is plenty of available help when thinking about filing for bankruptcy. If you open your mind to this process and think clearly, it can lead to better financial situation and leave you in a much better position than before.
