When someone has to file for bankruptcy, it is never a good thing. Many people feel embarrassed or ashamed if they have to tell other people that they are bankrupt. Use the tips in this article to help you avoid bankruptcy so you can save yourself from all that trouble.
If for some reason the bankruptcy case gets dismissed because there was a mistake, you are allowed to re-file. Generally, you are only granted an automatic 30 day stay if your case is dismissed. If the judge can understand your error and refiling, then then stay may be extended.
When you document your financial records, it is vital that you are 100% truthful in order to have a successful resolution to your bankruptcy process. You might feel tempted to not declare certain assets in your bankruptcy in order to protect them from forfeiture, but if you’re found out, the process could take longer, or worse, you might be banned from filing for bankruptcy completely.
Be certain that you can differentiate between Chapter 7 and Chapter 13 bankruptcy. Should you choose Chapter 7, your total debt load will be erased. The ties with the creditor will be broken. If however you enter Chapter 13, you will go into a five year repayment program prior to your debts dissolving entirely. You must know about the different bankruptcy types, and how each can affect you.
Don’t leave all the details in your lawyer’s hands. While your lawyer is your personal bankruptcy expert, it is still important to stay involved in the process. It might feel nice to leave everything to your attorney in the short run, but doing so could have long-term financial consequences.
You do not always need to give in and file bankruptcy. The information contained in this article can help you to avoid having to file for bankruptcy. Put this advice to work in your life so that you can avoid damaging your credit rating.