Personal BankruptcyIf you are in debt and on the verge of filing for bankruptcy, then do not worry any longer. The Internet can offer many options on how to avoid unwanted financial problems like bankruptcy. Peruse this article and pick up some tips on how to prevent a financial catastrophe that causes you to go bankrupt.

Any bankruptcy consultation should be free of charge. Nearly all attorneys offer free initial consultations, so you should be able to meet with a few before you make a final hiring decision. Make your decision after all of your questions have been answered. You can think about your decision before making a commitment. This offers you the opportunity to speak with other attorneys.

A great personal bankruptcy tip is to reconsider getting a divorce, if you’re finding yourself in a tough financial situation. Many people find they need to claim bankruptcy after divorce because they did not see the financial problems that were ahead of them. Thinking divorce through is the smart thing to do.

Before you file, make sure you understand the laws as much as possible. For instance, for 365 days before filing, no one is able to receive assets from the filer. It is also against the law to max out your credit cards before filing for bankruptcy.

Protect your house. Bankruptcy doesn’t always mean you’ll lose your home. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. If you meet certain criteria, you may be able to retain ownership of your home even after filing for bankruptcy.

Once you have met with an attorney, you may be given a telephone number for your creditors to confirm you are filing bankruptcy. You can just give them the number and they can call for confirmation that your debt is indeed part of a bankruptcy. This should put an end to their calls.

When you’re currently filing for bankruptcy, creditors will likely have less conversations with you. If you agree to anything with any lender, you need to get it in writing. Any flexibility that your creditors demonstrate, can have a huge impact on your bankruptcy process – as long as you have a record of it!

Don’t file for bankruptcy without knowing your rights. Certain unscrupulous creditors will try to convince you that certain debts can’t be discharged in bankruptcy. There are only three main classes of debts that are non-dischargable: taxes, child support and student loans. If a debt collector tells you this false information, seek the advice of your bankruptcy attorney. You may also want to report the bill collector to the attorney general’s office.

Do not take a large cash advance from credit cards prior to filing, knowing that bankruptcy erases all debts. This is illegal. It’s fraud, and you can still be responsible for paying it back even after declaring bankruptcy.

Consider filing for Chapter 13 bankruptcy. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. This lets you keep any real estate and personal property while you repay all your debts through a consolidation program. Expect to make payments for up to 5 years before your unsecured debts are discharged. Just know that missing one payment could cause your case to be dismissed.

Be aware that getting unsecured credit is going to be tough once you’ve gone through bankruptcy. If you find that to be the situation, consider requesting secured cards. This will be a demonstration of the seriousness with which you view rebuilding your credit rating. After a certain time, you will then be able to acquire credit cards that are unsecured.

Stay up to date with any new bankruptcy filing laws. Bankruptcy law evolves constantly, and it’s important to stay up-to-date to ensure that you file properly. Check the website of your state’s legislation or get in contact with your local office to learn more about these important changes.

Make a list of all your debts. This will be the basis for your bankruptcy filing, so make sure you include all the debts you are aware of. Remember to go through all of your records and try to determine the exact amount. Take your time during this process; don’t rush and make sure all of your figures are correct.

Do not put off filing for bankruptcy. Some folks ignore financial difficulties for a long time, and this can be disastrous. Debts can multiply very quickly, and can result in you losing money to wage garnishment, or even losing assets that are part of a secured loan. As soon as you’ve decided that you no longer have a handle on your debts, consult a bankruptcy lawyer to see if bankruptcy is right for you.

A great tip to implement before filing a bankruptcy claim is to seriously take some personal inventory. What you’re looking for are the bad decisions that led to this particular point in time. The loss of a job or surprise medical emergency bills may have been out of your control. But if you got to this point of obsessive shopping or being lazy about saving, those are problems. You may need some help after filing bankruptcy to change your ways so that you do not end up in the same spot again.

One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. To avoid problems, penalties and future re-filing bans, resist the urge to hide documentation or assets.

Always research first. If you want to file bankruptcy, but can not afford to pay a lawyer, you might want to do it yourself. It is possible to do this, but you need to be sure that you have the proper information to do it correctly. If your petition contains errors, it could be denied by the judge. Be sure you are doing things the proper way so this isn’t the case for you.

Planning properly can help you get on the right track. The more time you can obtain for yourself, the better off you will be. Every little bit helps when you are working to get out from under the threat of bankruptcy. Take the time now to plan for the future.