Filing for bankruptcy will be a very crucial decision, so don’t take it lightly. Read this article to find out more about personal bankruptcy and get the information you need to make an educated decision. Take the time to educate yourself before you make your choice.
It’s important that you understand what bankruptcy is and how it will change your life before you attempt to file a claim. The U.S. Department of Justice, NACBA, and American Bankruptcy Institute websites are all great places to go for up-to-date information. The more knowledgeable you are, the more you can be sure that you are making the right decision and that you are taking the right steps to ensure your personal bankruptcy goes as smoothly as possible.
Do not even think about paying your taxes with credit and petitioning for bankruptcy right after. Credit card debt is handled charge by charge during bankruptcy, and in most states, tax debt cannot be discharged through bankruptcy. A common rule is that dischargeable tax means dischargeable debt. So, there’s no reason to make use of a credit cards if it will not be discharged in bankruptcy.
Prior to filing for bankruptcy, be sure you have investigated all of your alternatives. Look into other options, such as consumer credit counseling. Bankruptcy permanently affects your credit, so avoid filing until you have exhausted all of your other options.
When it comes to informing your attorney about your case, don’t be fearful. Lawyers are people too, and sometimes they forget important information and need to be reminded. Be as open as you can be to make sure your bankruptcy goes as well as possible.
When choosing a bankruptcy lawyer, your best option is to find someone who is recommended by someone you know versus someone who you find online or in the phone book. Some companies just want to take advantage of you, so it is important that you have help from someone you trust.
Be honest when filing for bankruptcy, because hiding liabilities or assets can only cause trouble to you. It is necessary to be open regarding both the positive and negative aspects of your financial life. Put everything out on the table and craft a wise plan for handling the situation the best you can.
Many bankruptcy attorneys offer the first consultation with no charge, so consult with several before deciding on one. Ask to speak with the licensed attorney and not a representative, who can not offer legitimate legal counsel. Hiring a lawyer could help you become comfortable with the legal things that you will encounter.
Carefully consider filing for bankruptcy on loans that have a co-signer, especially if that co-signer is a business associate, close friend or relative. Speak to an attorney or read the bankruptcy laws in your state to find out if certain loans can be excluded from your filing. However, the creditors could come after your co-signer and demand full payment for the debt.
File when the time is right. When it comes to filing for personal bankruptcy, timing is everything. There are occasions where it pays to delay and others where a quick decision is the best option. Speak with a bankruptcy lawyer to discuss the proper timing for you to file bankruptcy.
Refrain from feeling shameful about your bankruptcy. It is not uncommon for bankruptcies to elicit feelings of guilt, remorse and embarrassment. Feeling like this will not help your situation and can actually do serious damage to your mental well-being. If you are filing for bankruptcy and you are thinking negatively about the situation, make an effort to stop that now.
Be certain you are totally aware of the laws of bankruptcy before you file. For instance, you need to know not to shift assets into someone else’s name in the year leading up to your filing. Also, you can’t go and max out your credit card just because you are about to file for bankruptcy.
Before you make the final decision to file bankruptcy, consider the other options you have. Credit counseling is one option you should consider. There are many non-profit debt counseling services available. They will work with your creditors to get your payments lowered and your interest lowered as wll. They collect payments from your and then pay the creditors.
Never take huge cash advances directly from your credit cards before you file for bankruptcy, since you know that all debts will be erased from these cards. Doing so constitutes fraud. You can easily be ordered to repay all of this money, by the courts.
Write down everything that you owe. Once you have an idea of who you owe and how much you owe, you can figure out if bankruptcy is really an option for you or not. Make sure you go through your records and be sure about the exact amounts. Don’t hurry through this task; the information needs to be correct for you to receive a discharge.
Regardless of how dire your situation may be, candor is critical. Lying concerning your financial situation will not help you out of this situation. And it is illegal. If you lie in the recording of your debts and assets, you may end up in prison for quite some time.
Check each debt to be sure everything can be cleared through bankruptcy to avoid any excessive filing. You will still be responsible for most student loans. For these kinds of debts, you can consult loan consolidation services or credit repair agencies. These services will help you manage and reduce your debts.
Hire a bankruptcy lawyer with experience in the subject. There are numerous attorneys available to assist you with your case. A lot of people filing claims will jump at the first available lawyer or the attorney charging the least amount of money. However, it’s in your best interest to go with the lawyer most qualified.
Taken Care
As you are aware from the previous paragraphs, bankruptcy is not something that just happens. There are many things that must be taken care of, and must be done right. If you use the advice from this article, everything will be properly taken care of when you file for bankruptcy.
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