Important Tips And Tricks On Filing For Bankruptcy
Filing for bankruptcy can be an emotional and trying time for anyone involved especially with the negative connotation that is often linked to people who file for bankruptcy, but there are times that filing is the right decision for a person. In this article I will go over some tips and tricks about filing for bankruptcy and help you with deciding if you should consult a lawyer to file for bankruptcy. As one that has gone through bankruptcy personally, seeing my mom go through two versions, and my best friend I have run into the process quite a few times therefore I feel I can give some advice on what to know and what can be useful if one is considering bankruptcy.
I will be breaking this down to a few different sections of information. First, I will go over important information you are going to need before filing for bankruptcy. Second, I will go over some of the basic information you will want to know about the main two bankruptcies on the pros and cons of each bankruptcy in order to make an informed decision. Third, I will go over what to look for when it comes to finding a lawyer for the bankruptcy. Fourth, I will go over the sage advice and conclusion on everything covered in this article.
Important Information
If you are even considering filing for bankruptcy there is information you are going to need before you do so. One of the main pieces of information you are going to need is a list of all those that you owe money to, the balances, the APR if any, and the payment every month or however often you pay it. This is not only required when you do see an attorney, but you will be asked when you do the pre-filing of bankruptcy class that you will have to do online as well. Having it before you do the online class and seeing an attorney will save you time and energy later.
Another important pieces of information you will need to have put together is your bank statements, tax returns, paychecks and/or other sources of income, and any other source of information that has proof of your income and your expenses your lawyer will need this information to put together your actual case for the bankruptcy, and you will need some of the information on expenses while doing the online class. You will need to have at least the money to pay for the online class, although some lawyers will work with a payment structure to help pay the fees to attain them, you will need the money for the online class as it is a requirement to even be able to file bankruptcy.
Always remember to have a free consultation do not agree to pay for anything as one of your rights is to talk to an attorney about the possibility of filing bankruptcy before actually doing so. I will talk more about what to look for when it comes to finding a lawyer to represent you if you choose that route will be gone over the third section of this article. Remember that you can also file bankruptcy on your own without paying for an attorney and during that section about finding an attorney I will give you some of the pros and cons of both. Now, I will go over some of the main information you should know about chapter 7 and chapter 13 bankruptcies which are the two main types of bankruptcy that individuals file.
Chapter 7 And Chapter 13 Pros And Cons
In this section I am going to go over the two main chapters of bankruptcy an individual usually files, although there are a few others as well and ones for companies I feel that since these are the two most common they are the most important to go over. You can Google and than if needed to consult your attorney if you need more information on other chapters. I also suggest that although this is an overview of each chapter to consult your attorney and do your own reading before fully deciding which chapter to file even with the information given.
A chapter 7 bankruptcy is the wiping of all debts where you make no payments to a trustee; you make one full payment to the lawyer, and an ability to receive a fresh start quickly. In this case all debts one might have had in the past that they include in the bankruptcy are discharged, also known as being written off, in a matter of a few months. Be aware that although most of the time you will not lose any of your assets if you have anything to worry about than be sure to discuss it with your attorney once you have attained one.
A chapter 13 bankruptcy is a way for someone to be able to have the opportunity to repay some of their debts in better terms in which they are given a total of five years in order to pay back all the debts they include. They give a payment toward a trustee which handles paying the debts that are listed under the agreement to the creditors that they owe money to. This bankruptcy is usually used in cases of those that want to keep cars and homes that are not fully paid off. In this case as well when making the payments you end up paying your fees for your attorney through these means making it easier to not have to come up with as much money at once.
The pros of a chapter 7 bankruptcy would be the fact that once you are done with the hearing you would no longer have to make any payments toward your debts, you receive a discharge of all your debts quickly, and on most occasions you would not lose your assets. The cons of filing chapter 7 bankruptcy is having to pay all the fees at one time although there are lawyers that will work on doing a payment plan before they file your paperwork, even with a lawyer giving the ability to do a payment plan the costs of doing chapter 7 can be a lot to deal with at one time, and until you are able to file you still have to deal with your creditors until you have attained your lawyer. The pros of a chapter 13 bankruptcy would be the fact that you are able to make payments toward the debts including the fees for the lawyer giving you the ability to make it easier for you, you are able to make easier payments to your debts especially if you own a car or a house this chapter is usually better suited for this, and that you would still be able to get a discharge once your chapter 13 debts are all paid. The cons of a chapter 13 bankruptcy would be that it takes longer for your debts to be discharged, the fact that you have to make a payment to a trustee every single month, and it will take longer to get the fresh start you are looking for.
Remember in the end both you and your lawyer will need to figure out which chapter of bankruptcy is going to work the best for your situation. It is also important to listen to yourself on which chapter is going to work for you. Now, we are going to go over things to consider when one is looking for a lawyer for filing bankruptcy.
What To Look For In A Lawyer
One of the most important things to look for in a lawyer is accountability. Is there a record of the lawyer being one that will not only take cases but will do what is needed for the filing. Is it a person you can trust? Although there is no for sure way to know if the lawyer will represent you, however if you know others in your state that have filed bankruptcy and used a lawyer getting a referral is one of your best bets.
Another important thing is will the lawyer be honest with you. Will they tell you about your rights when you have a free consultation. Will they tell you that you can also do this on your own. Will they disclose all the important information such as how much it is going to cost, what is going to happen when you have the hearing, and what will be expected of you afterwards.
Something that cannot be stressed enough when it comes to finding a lawyer you can use for the bankruptcy is if it is someone you feel in your mind that they will be the best representation for you during the process. They also need to be someone you can trust as they are going to be handling a very important part of your life since there is that emotions that will be part of the process. Bankruptcy even when you know that you have to do it, is a very emotional process one that is hard and some will shun even in today’s age. Having a lawyer that can understand what you are feeling in even a small regard is a blessing and a plus. Now, I will go over the sage advice I have learned from dealing with bankruptcies and the conclusion of this article.
Sage Advice And Conclusion
Deciding to file for bankruptcy is one that can be confusing, hard, mind numbing, difficult, and one to not be taken lightly. Remember that nothing in life even a credit score that can always be changed back to positive is worth your health. Although filing bankruptcy does damage your credit for a time so does being late on payments, having too many debts, and even debt reconstruction programs that are out there that give you another alternative to filing bankruptcy. Health issues that can be caused from high amounts of stress can be worse not to mention depression that can happen from being stressed about money.
If you have a car that you owe money to and tend to keep it I have found that it is usually better to file chapter 13 than a 7 as you will have to deal with extra steps in doing so. When filing a chapter 7 with a car usually you will have to go through a reaffirmation agreement which puts you through another hearing for discharging that particular debt. Usually reaffirmation agreements are also for the benefit of the creditor and not the debtor, do know if you go through that route that as long as you continue to make timely payments they will not repossess your property if you the judge does not reaffirm your debt with the creditor. Do not feel pressured to choose one lawyer over another it is important that since you will be paying fees for this lawyer that you do so with your free will.
Remember that you are not alone although you might feel that you are going through the situation. There are people that have gone through the same situation. Do not feel that you cannot get support or have someone that is able to be there for you through this difficult situation. Do not feel bullied into not filing just because of how certain people might see you many do not always understand the hardship that comes with filing bankruptcy and the feeling of hopelessness that can come when one comes to this point. In the end, be true to yourself and what is right for your situation.
I will be breaking this down to a few different sections of information. First, I will go over important information you are going to need before filing for bankruptcy. Second, I will go over some of the basic information you will want to know about the main two bankruptcies on the pros and cons of each bankruptcy in order to make an informed decision. Third, I will go over what to look for when it comes to finding a lawyer for the bankruptcy. Fourth, I will go over the sage advice and conclusion on everything covered in this article.
Important Information
If you are even considering filing for bankruptcy there is information you are going to need before you do so. One of the main pieces of information you are going to need is a list of all those that you owe money to, the balances, the APR if any, and the payment every month or however often you pay it. This is not only required when you do see an attorney, but you will be asked when you do the pre-filing of bankruptcy class that you will have to do online as well. Having it before you do the online class and seeing an attorney will save you time and energy later.
Another important pieces of information you will need to have put together is your bank statements, tax returns, paychecks and/or other sources of income, and any other source of information that has proof of your income and your expenses your lawyer will need this information to put together your actual case for the bankruptcy, and you will need some of the information on expenses while doing the online class. You will need to have at least the money to pay for the online class, although some lawyers will work with a payment structure to help pay the fees to attain them, you will need the money for the online class as it is a requirement to even be able to file bankruptcy.
Always remember to have a free consultation do not agree to pay for anything as one of your rights is to talk to an attorney about the possibility of filing bankruptcy before actually doing so. I will talk more about what to look for when it comes to finding a lawyer to represent you if you choose that route will be gone over the third section of this article. Remember that you can also file bankruptcy on your own without paying for an attorney and during that section about finding an attorney I will give you some of the pros and cons of both. Now, I will go over some of the main information you should know about chapter 7 and chapter 13 bankruptcies which are the two main types of bankruptcy that individuals file.
Chapter 7 And Chapter 13 Pros And Cons
In this section I am going to go over the two main chapters of bankruptcy an individual usually files, although there are a few others as well and ones for companies I feel that since these are the two most common they are the most important to go over. You can Google and than if needed to consult your attorney if you need more information on other chapters. I also suggest that although this is an overview of each chapter to consult your attorney and do your own reading before fully deciding which chapter to file even with the information given.
A chapter 7 bankruptcy is the wiping of all debts where you make no payments to a trustee; you make one full payment to the lawyer, and an ability to receive a fresh start quickly. In this case all debts one might have had in the past that they include in the bankruptcy are discharged, also known as being written off, in a matter of a few months. Be aware that although most of the time you will not lose any of your assets if you have anything to worry about than be sure to discuss it with your attorney once you have attained one.
A chapter 13 bankruptcy is a way for someone to be able to have the opportunity to repay some of their debts in better terms in which they are given a total of five years in order to pay back all the debts they include. They give a payment toward a trustee which handles paying the debts that are listed under the agreement to the creditors that they owe money to. This bankruptcy is usually used in cases of those that want to keep cars and homes that are not fully paid off. In this case as well when making the payments you end up paying your fees for your attorney through these means making it easier to not have to come up with as much money at once.
The pros of a chapter 7 bankruptcy would be the fact that once you are done with the hearing you would no longer have to make any payments toward your debts, you receive a discharge of all your debts quickly, and on most occasions you would not lose your assets. The cons of filing chapter 7 bankruptcy is having to pay all the fees at one time although there are lawyers that will work on doing a payment plan before they file your paperwork, even with a lawyer giving the ability to do a payment plan the costs of doing chapter 7 can be a lot to deal with at one time, and until you are able to file you still have to deal with your creditors until you have attained your lawyer. The pros of a chapter 13 bankruptcy would be the fact that you are able to make payments toward the debts including the fees for the lawyer giving you the ability to make it easier for you, you are able to make easier payments to your debts especially if you own a car or a house this chapter is usually better suited for this, and that you would still be able to get a discharge once your chapter 13 debts are all paid. The cons of a chapter 13 bankruptcy would be that it takes longer for your debts to be discharged, the fact that you have to make a payment to a trustee every single month, and it will take longer to get the fresh start you are looking for.
Remember in the end both you and your lawyer will need to figure out which chapter of bankruptcy is going to work the best for your situation. It is also important to listen to yourself on which chapter is going to work for you. Now, we are going to go over things to consider when one is looking for a lawyer for filing bankruptcy.
What To Look For In A Lawyer
One of the most important things to look for in a lawyer is accountability. Is there a record of the lawyer being one that will not only take cases but will do what is needed for the filing. Is it a person you can trust? Although there is no for sure way to know if the lawyer will represent you, however if you know others in your state that have filed bankruptcy and used a lawyer getting a referral is one of your best bets.
Another important thing is will the lawyer be honest with you. Will they tell you about your rights when you have a free consultation. Will they tell you that you can also do this on your own. Will they disclose all the important information such as how much it is going to cost, what is going to happen when you have the hearing, and what will be expected of you afterwards.
Something that cannot be stressed enough when it comes to finding a lawyer you can use for the bankruptcy is if it is someone you feel in your mind that they will be the best representation for you during the process. They also need to be someone you can trust as they are going to be handling a very important part of your life since there is that emotions that will be part of the process. Bankruptcy even when you know that you have to do it, is a very emotional process one that is hard and some will shun even in today’s age. Having a lawyer that can understand what you are feeling in even a small regard is a blessing and a plus. Now, I will go over the sage advice I have learned from dealing with bankruptcies and the conclusion of this article.
Sage Advice And Conclusion
Deciding to file for bankruptcy is one that can be confusing, hard, mind numbing, difficult, and one to not be taken lightly. Remember that nothing in life even a credit score that can always be changed back to positive is worth your health. Although filing bankruptcy does damage your credit for a time so does being late on payments, having too many debts, and even debt reconstruction programs that are out there that give you another alternative to filing bankruptcy. Health issues that can be caused from high amounts of stress can be worse not to mention depression that can happen from being stressed about money.
If you have a car that you owe money to and tend to keep it I have found that it is usually better to file chapter 13 than a 7 as you will have to deal with extra steps in doing so. When filing a chapter 7 with a car usually you will have to go through a reaffirmation agreement which puts you through another hearing for discharging that particular debt. Usually reaffirmation agreements are also for the benefit of the creditor and not the debtor, do know if you go through that route that as long as you continue to make timely payments they will not repossess your property if you the judge does not reaffirm your debt with the creditor. Do not feel pressured to choose one lawyer over another it is important that since you will be paying fees for this lawyer that you do so with your free will.
Remember that you are not alone although you might feel that you are going through the situation. There are people that have gone through the same situation. Do not feel that you cannot get support or have someone that is able to be there for you through this difficult situation. Do not feel bullied into not filing just because of how certain people might see you many do not always understand the hardship that comes with filing bankruptcy and the feeling of hopelessness that can come when one comes to this point. In the end, be true to yourself and what is right for your situation.
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