Coping with the realization that you have to file bankruptcy is not any easy thing to do. When you notice you are in money troubles, you also notice that you might not have many financial options. Even if your credit score isn’t good, you may still find that there are ways to get a home loan or a car.
Make sure that you understand everything you can about personal bankruptcy by visiting websites that offer information. The U.S. Run a quick Internet search to find out all the different agencies you should be contacting or visiting via the web to find out what you can. The greater your body of knowledge, the better prepared you will be to make the decision of whether or not to file and to make certain that if you do file, the process is a smooth one.
Credit Card
Don’t think that loading up your credit card with tax debt and then filing for bankruptcy is an answer either. Generally speaking, taxes are not a dischargeable debt. The delays caused by this sort of tactic could leave you owing the IRS a great deal in interest and penalties. Transferring the debt to another medium (e.g. a credit card) won’t magically make a tax debt discharagable, either. Therefore, you have no reason for use of a credit card, if the amount is to be discharged in due process of the bankruptcy.
Don’t feel bad if you need to remind your attorney about any specifics of your case. Many times a lawyer may forget a key detail; therefore, it is important to remind your lawyer of any key information. Speak up. This is your life, and your future depends on it.
You should never give up. When you file for bankruptcy you may be allowed to recover property like your car, electronics or jewelry that might have been repossessed. If the property you own has been repossessed under 90 days before the bankruptcy filing, you may still be able to get it back. Talk with an attorney who can guide you through the process of filing a petition.
Familiarize yourself with the bankruptcy code before you file. Bankruptcy laws are in constant flux, so just because you knew the law last year doesn’t mean that the laws will be the same this year. To find out about these changes, you can look at your state’s legislation website or contact their office.
Talk to a lot of different bankruptcy lawyers; most of them will give you a free consultation. Make sure that you meet with an actual lawyer and not an assistant or paralegal, as these people are not allowed to provide legal advice. Take some time to talk to different lawyers to find one that fits your needs, and meshes well with you.
Your most important concern is to protect your home. Bankruptcy filings do not necessarily mean that you have to lose your house. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. There are also homestead exemptions which, depending on your other finances, may allow to remain in your home.
Loved Ones
Always make your loved ones a priority. The process of bankruptcy can seem brutal. It takes a long time, it can be stressful, and people feel unworthy, guilty and ashamed. It can be hard to face the world while the bankruptcy process is taking place. This isn’t true though because when you isolate yourself you will just start to feel worse and may become depressed. It’s imperative that you spend as much time with loved ones as you can, even in the midst of your financial dilemma.
Even though you may have filed for bankruptcy, you hopefully realize that it does not doom your forever. By demonstrating responsible financial management, (saving money, making payments on time) you can impress creditors and rebuild your credit rating. You will receive more favorable treatment when you apply for a loan if you start saving now.
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