Techniques For Getting The Most Out Of Filing Bankruptcy
If you have been put into the position of needing to file for bankruptcy, you are likely not to be very happy about it, but it does not lead to your life ending. Once you have completed the bankruptcy process you can begin anew with a clean slate. Continue to read this article to learn how good a bankruptcy can end up being for your life.
Watch your lawyer fill out your paperwork carefully. They, most likely, have multiple cases going on at the same time and may not be able to keep up with every detail of your case. Be sure to carefully read all of that paperwork, in order to make sure that everything is filled out correctly.
Decide whether you want to file for Chapter 7, or Chapter 13 bankruptcy. As an individual, you may do either one. Find out as much as you can about each type of bankruptcy, so you are able to make a choice that you can live with in the future.
If you have student loan debt, you’ll need to prove that paying your student loans would constitute an undue hardship in order to get it discharged. Gather all of your financial documents and draw up two budgets: one that includes student loan payments and one that does not. That way you can more easily demonstrate that paying your student loans would interfere with your financial recovery.
Before meeting with a lawyer, start compiling all of the documentation and paperwork you will need to provide an accurate picture of your finances. Gather six months’ worth of pay stubs, bank statements, bills and credit card statements. Create a list of property and assets that you own. Having this entire information ready from the beginning can save you trouble when it’s time to file.
Stay up to date with any new bankruptcy filing laws. Bankruptcy law has changed substantially in recent years, and therefore you must understand how such changes may affect your situation. Your state’s legislative offices or website will have up-to-date information about these changes.
Before deciding to file for bankruptcy, you may want to look into other options. Remember, when you file for bankruptcy, you are greatly hurting your credit score, which in turn, can prohibit you from buying a house, car, and other big purchases. Consider safer, alternative methods first, such as consumer credit counseling.
If you are sure that you are going to file for bankruptcy, you should stop making any payments towards debts, that will be discharged during the bankruptcy process. Since you will not be liable for these debts in the near future, it is of little benefit to you to keep making payments towards them. It would be more beneficial for you to save any spare cash, that you have for future needs.
As stated before, unhappy events may have led you to declare bankruptcy. However, once this chapter is written it is done and you can begin to start fresh. Using the advice you have found here, bankruptcy can be the beginning of a new, exciting chapter in your life!