Filing personal bankruptcy can be a somewhat complex process. There are multiple ways you can file for bankruptcy, and you may qualify for one or more.The advice in this article can be a good starting point for personal bankruptcy.
Be certain to gain a thorough understanding of personal bankruptcy via looking at websites on the subject. Department of Justice and National Association for Consumer Bankruptcy Institute are two such places to look.
Always be honest when it comes to your bankruptcy petition.
The Bankruptcy Code contains a list of various assets considered exempt from bankruptcy. If you neglect this important step, you could lose some assets that you value.
The person you choose to file with needs to know both the good and accurate picture of your finances.
Learn all the newest bankruptcy laws before you file bankruptcy. Bankruptcy law evolves constantly, so just because you knew the law last year doesn’t mean that the laws will be the same this year. Your state’s website will have the information about these changes.
Be sure you know how Chapter 7 and Chapter 13 bankruptcy. Chapter 7 bankruptcy is intended to wipe out your debt. You will be removed from any money that you have with your creditors. Chapter 13 bankruptcy though will make you work out a five year repayment plan that takes 60 months to work with until the debts go away.
Filing bankruptcy does not necessarily mean you will lose your house. Depending on whether the value of your home has decreased or if you have a second mortgage on the home, you may very well end up being able to keep your home. You may also want to check out the homestead exemption either way just in case.