When you’re indebted to people or institutions, it’s only a matter of time before they show up at your door to collect. Sometimes literally. When your debt situation gets serious enough, you may want to consider personal bankruptcy as a way to save yourself. This article has tips that can help you through this complicated journey.
Once a person’s debts outstrip his or her ability to repay them, bankruptcy may be the only option left. If you are in this position, you need to be familiar with the laws in your area. Bankruptcy rules vary by jurisdiction. Your home is safe in some states, but in others it’s not. Be sure to have some familiarity with the law in your jurisdiction.
As filing bankruptcy becomes more of a reality, don’t use your entire savings or your retirement funds to pay creditors or attempt to resolve insolvency. Leave your retirement accounts untouched unless there is absolutely no other alternative. If you do have to dig into your savings, make sure that you leave enough to sustain you and your family for a couple of months.
Ensure that you are providing genuine details when filing a bankruptcy petition, because honesty is the best policy when dealing with bankruptcy. You may be tempted to try to hide income and personal assets from discovery, but doing so often leads to major complications, monetary penalties and the possibility that your case will be thrown out of court.
Research what assets are exempt from seizure before you decide to declare bankruptcy. The federal statutes covering bankruptcy can tell you exactly which assets are exempt from forfeiture to pay off creditors. Prior to filing for bankruptcy, it is critical that you go over this list, so that you know if you can expect any of your most valuable possessions to be seized. You wouldn’t want to unexpectedly lose any possessions you treasure.
Keep working to improve your situation. Filing for bankruptcy may allow you to get back property, such as an auto, jewelry, or electronics, that you may have had repossessed. If you have property repossessed less than ninety days prior to filing your bankruptcy, you may be able to get it back. Talk to a lawyer for help with the petition filing process.
Of course you could decide to file bankruptcy, but learn of your other choices first. You must remember that some debt consolidation services really are just a scam, and using them will result in even more debt for you. The tips you have found here can help you to make the choices that are right for you, and help you steer clear of debt in the future.