Personal Bankruptcy: Tips For Starting Over With A Clean Slate

Just thinking about bankruptcy is a scary thought for many people. The piling on of debt and not being able to support their family is an awful situation for many to ponder. If these circumstances sound familiar, you stand to benefit from the tips that follow.

Make sure you’ve exhausted all other options prior to declaring bankruptcy. Look into other options, such as consumer credit counseling. Bankruptcy is a permanent part of your credit, so before you make such a big decision, you might want to explore all other choices so that your credit history is affected as minimally as possible.

Always be honest and forthright when it comes to your bankruptcy petition. Not hiding any assets or income is essential for avoiding possible penalties and your ability to re-file at some point in the future.

Always remind your lawyer of specifics that are important to your case. It is wrong to assume that your lawyer will remember every word you ever utter! Speak up. This is your life, and your future depends on it.

There are two types of personal bankruptcy: Chapter 7 and Chapter 13. Make sure you know what each entails so you can make the right choice. In Chapter 7 bankruptcy, your debts are all eliminated. Your ties with all creditors will get dissolved. With a chapter 13 bankruptcy, a 60 month period of time will be established in which you will repay the as much of your debt as possible. Following the 60 month period of time, the remainder of your debt will be excused. Both options have advantages and drawbacks, so do your research before deciding.

As you can see, you are not alone in your need to fix your finances by choosing bankruptcy. The difference is, you are arming yourself with good knowledge with articles like this. Put the tips you learned into action so that you can ensure your bankruptcy process moves along without trouble.