If you are severely in debt, the only viable option may be filing for bankruptcy. You can make this decision without any regrets if you are aware of certain factors.
Know the Benefits
You need to know the benefits of filing for bankruptcy because this helps you make an informed decision. Most importantly, filing for bankruptcy helps eliminate most, if not all, of your debt. There are some exceptions. This includes child support, student loans, secured debts, tax debts, and alimony, which cannot be cancelled out by bankruptcy filing. Knowing these exceptions helps you avoid confusion later on.
Even though you file for bankruptcy, you’ll still get to keep your home, personal property, and vehicle. This prevents debt from interfering too much with your daily routine. After filing, tax collectors and creditors will no longer be able to get in touch with you. This gives you some peace and quiet to get your financial situation fixed.
Filing for bankruptcy correctly is vital so that you don’t face serious legal consequences. On all of your documents, make sure the information is accurate and not misleading. This includes your assets, debts, income, and financial history. A bankruptcy lawyer can assist with the paperwork, saving you time and preventing you from leaving out important information.
Don’t Move Assets
During this time, you need to keep all assets where they are. Don’t try to sell them or transfer them to other people. You can, however, sell your home if you were trying to come up with money to lower your debt. Just make sure you are up front with the creditors.
Bankruptcy is an intimidating situation to face, but it is not all that bad. Consult with a bankruptcy lawyer right away so that he can take you through each step.