Filing for personal bankruptcy is a serious decision.
Therefore, it is very important to understand what you are doing
when you file for bankruptcy. Use the tips written in this guide
to help you go in the proper direction. Whatever your particular
difficult situation entails, you can learn how to handle it with a
If you plan to seek bankruptcy protection, you must not transfer
any assets during the year prior to your filing. This will be
interpreted by the court as hiding assets and prevent you from
filing for bankruptcy. You may be tempted to hand off assets so
they're not seized, but they may not be seized to begin with. In
any case, hiding your assets is a bad idea, and if you have made
recent transfers, your filing will need to wait.
List all questions that are concerning you before speaking with
the bankruptcy attorney. Legal help is not cheap, and you need to
use the time your lawyer allots for your meeting wisely. Write out
anything you can think of ahead of time that you need to know
about the bankruptcy situation, and don't forget to take the list
with you. Be sure that you fully understand that is happening with
regards to your case.
Prior to filing for bankruptcy, purge from your vocabulary the
word "shame". You may need to get credit counseling or simply
learn how to balance your budget. Wallowing in these emotions
benefits no one, and only serve to harm your own mental health.
These difficult financial times can easily take their toll on
anyone. One of the best ways to cope with the situation is to
maintain a positive attitude.
You should not have to pay for a consultation with a bankruptcy
attorney. Make sure you ask lots of questions. Most attorneys
offer free initial consultations, and you should take advantage of
the chance to interview multiple practitioners. Choose to file
only if your lawyer has convinced you that this is the best
decision. You can think about your decision before making a
commitment. You could even go to different lawyers for advice.
Keep track of everything your attorney does throughout your
bankruptcy. It is important to keep informed, so don't be afraid
to call and ask any questions you may have. Lawyers are not exempt
from making occasional mistakes. Contrary to popular opinion,
lawyers do make mistakes.
Find a bankruptcy lawyer with a wonderful reputation. Once you
have a short list of attorneys, ask if they give free
consultations. If that is their policy, collect all your financial
information and make an appointment to see them. A good lawyer can
review the whole process with you and can help you understand what
Make wise decisions when choosing a lawyer. This area of law
attracts some inexperienced amateurs. Investigate the attorney you
are considering hiring and review his references. If you want to
check for a proper lawyer, you can use the Internet, ask your
friends, or look for a popular lawyer via the Yellow Pages. The
idea is that you want to ensure your lawyer's competency on the
Do some research about bankruptcy laws before filing for
bankruptcy. For instance, a filer cannot transfer assets to
someone else for at least a year before filing. Also, you must
never incur significant new obligations must prior to filing for
Although it may be difficult to get financing after filing for
bankruptcy, it will not be impossible by any means. That may be
the case; however, it may also be an improvement on your credit
rating prior to filing. Going forward, make sure to pay all bills
on time for a positive credit history.
Obtaining secondary employment is one way you can avoid
bankruptcy. Talk to your creditors about getting extensions
instead of filing bankruptcy. Hopefully, they will make some
concessions for you and you can avoid bankruptcy.
Don't be embarrassed about having to file for bankruptcy. It is
common for people to suffer from depression and feelings of
failure if they end up needing to file for bankruptcy. If you are
well-informed and have made a conscious and logical decision to
file for bankruptcy, look at it as a way to move forward and gain
financial independence with a clean slate.
Don't hide assets or liabilities when filing for bankruptcy. The
lawyer representing you when you file needs to have full knowledge
of your financial situation. Being honest is both the right thing
to do and, moreover, it is required by law.
If the bulk of your financial problems includes your student
loans, bankruptcy may not be the simplest option for you. This is
because most student loans come from government, and you better
believe that the government wants its money back, plus interest!
You may have to demonstrate undue financial hardship to get
student loans discharged.
In order to properly assist you with a bankruptcy filing, your
lawyer needs to know about every significant debt that you
currently have. You must provide them with information on lenders,
hospitals, credit card companies, and even money you owe friends
Make sure that you act at the appropriate time. Timing is
everything, especially in personal bankruptcy filings. While there
are times that it is ideal to file soon, there are other times in
which you should wait. The professional advice of a bankruptcy
lawyer can help you pin down the best time to file given your
current financial state.
As you've read, you can file bankruptcy several ways. Do not be
overwhelmed by the voluminous information available. Take a minute
to think about the tips you learned here. That way, you'll make
the best decisions.