It’s not uncommon for people to look down on others who choose bankruptcy, but one day find themselves in the same situation. A quick change in an life, such as a divorce, can cause a situation that can only result in bankruptcy. If filing for bankruptcy is your only choice, educate yourself on the process.
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. In many parts of the country, you cannot get this debt discharged, and in the end you will be left owing the IRS a big sum of money. The rule here is that if you can get the tax discharged then you can get the debt discharged. If you live in an area where tax can be discharged through bankruptcy, financing your tax bill is pretty pointless.
If you are feeling like you are seriously going to have to file for bankruptcy then do not clear out your savings. Avoid ever touching retirement funds until you have no other choice. You may need to tap your savings, but don’t empty your savings account, as this could leave you in a difficult situation down the road.
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. Remember that if you hide your valuable assets or income from your bankruptcy trustee, you may risk a number of penalties and complications. Among these is the possibility that you could be blocked from ever filing again.
When it comes to informing your attorney about your case, don’t be fearful. Don’t assume that they will recall every detail that you go over with them without a friendly reminder. All information submitted to the court with your signature needs to be double checked.
Keep working to improve your situation. You may be able to regain property like electronics, jewelry, or a car if they’ve been repossessed by filing for bankruptcy. If you have property repossessed less than ninety days prior to filing your bankruptcy, you may be able to get it back. A lawyer will be able to assist you with filing the paperwork to get the items back.
Seek a less serious option prior to filing for bankruptcy. If your debts are really not overwhelming, you may find the assistance you need by consulting a consumer credit counselor. You might also be able to negotiate lower payments yourself, but make sure that you get written records of any debt modifications to which you agree.
Safeguard your most valuable asset–your home. Bankruptcy filings do not necessarily mean that you have to lose your house. There are mitigating factors, such as lose of value, or multiple mortgages. Otherwise, look into the homestead exemption which may allow you to stay in your home if you meet financial threshold requirements.
Don’t file bankruptcy if you can afford to pay your debts. Though bankruptcy may appear to be a good way to escape your debts, it does affect your credit negatively for a fairly long time.
If keeping your vehicle is of great concern, ask your lawyer if you can secure a payment modification. Most of the time Chapter 7 bankruptcy will allow your payments to be lowered. But, your car has to have been bought at least 910 days before you file. Also, it must come from a high interest loan and you have to have been consistently working.
File at exactly the right time to maximize the effect of your bankruptcy. When it comes to filing for personal bankruptcy, timing is vital. Sometimes you should file immediately; however, there are times when it is better to delay until the worst has passed. Speak with a bankruptcy lawyer about when the best time is to file for your specific needs.
After you’ve exhausted every other option, you might determine that bankruptcy is the only way out of your debt crisis. If circumstances beyond your control have brought you to this place, you do not have to be stressed out. This article will offer you some helpful information.
This is a limited-time offer. We are not able to guarantee availability if you wait!
