Bankruptcy is a huge financial decision and should not be lightly considered. Look through the suggestions this article has to offer so you understand the ideas you should be thinking about when it comes to filing for bankruptcy. Then, you can make a decision based on what you learn.
Do not try to get clever by paying your taxes via credit card before you declare bankruptcy in an effort to dodge your tax burden. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. A common rule is that dischargeable tax means dischargeable debt. Because of this, transferring the debt to your credit card is pointless.
If you can, get a word-of-mouth referral for a lawyer. There are way too many people ready to take advantage of financially-strapped individuals, so you must ascertain that your attorney can be trusted.
Prior to filing your bankruptcy petition, go over the list of assets that cannot be seized by creditors. The Bankruptcy Code lists the kinds of assets which are exempted when it comes to the bankruptcy process. It is crucial to read the list before you file for bankruptcy so you know whether your favorite items will be taken. It is important to know what types of possessions may be taken away before they actually are seized.
It is important to list all your assets and liabilities during the bankruptcy proceeding. Failure to do so will only cause you problems in the end. Penalties may include fines, imprisonment or denial of the filing. Put everything out on the table and craft a wise plan for handling the situation the best you can.
You should be able to meet with a specialized lawyer for free to ask your questions. It is a good idea to consult several attorney before deciding on one. Make your decision after all of your questions have been answered. You do not need to make a decision immediately after the consult. So you have sufficient time to speak with a number of lawyers.
Learn all the latest laws before you file bankruptcy. The laws change a lot, so you need to look them up and have a better idea of how to properly approach the bankruptcy process. To stay up-to-date on these laws, check out your state’s government website.
There are two different kinds of personal bankruptcy you can file for: Chapter 7 and Chapter 13. Take the time to find out about each one online, and look at the advantages and disadvantages of each. If the information you read is unclear to you, take the time to go over the specifics with your lawyer before making a decision on which type you will want to file.
If you meet certain requirements, you may be able to get a lower monthly payment on your financed vehicle. Often, you can negotiate a lower payment through bankruptcy. Your car must have been purchased more than 910 days prior to filing, be a high interest loan, and you must have had a steady work history for this to work.
Make sure you are completely aware of bankruptcy laws before you consider filing. Here is one example, an individual who files for bankruptcy cannot transfer any assets for a year before the filing date. Also, a person cannot legally increase their debt amount on credit cards prior to filing.
Credit Counseling
Take a look at all of your financial options before filing for personal bankruptcy. One option to consider is credit counseling. You can get the help you need from a variety of non-profit credit counseling companies. They can work with the creditors to lower payments and interest. They act as intermediaries between you and your creditors; you pay the counselors and they pay the companies to which you owe money.
Before you decide to file bankruptcy, you should think of ways to become more financially responsible. Don’t boost current debt or get new debt before bankruptcy. In the course of a personal bankruptcy filing, your creditors and the court will examine your credit history right up to the filing date. Show that you are making a positive change to your current financial situation.
Organize your debts into an easy-to-read list. This will be included in your bankruptcy filing, so include every entity that you know you owe money to. Search your financial records to be certain that every amount on your list is exactly correct. Any inaccuracies or discrepancies can lead to a dismissal of your petition.
Do your research before hiring a bankruptcy attorney. Bankruptcy law seems to be a haven for new, inexperienced attorneys. Ensure that the attorney you choose is experienced and has the proper license. Go online and look up the attorney’s record and read up on any reviews, as well as any pertinent background information.
This article has probably helped you see that bankruptcy is a process that involves a lot of planning. There are a number of things to do, each of which deserves careful attention. If you apply the tips above, it is possible to be certain that your case is handled cleanly and thoroughly.
This is a limited-time offer. We are not able to guarantee availability if you wait!
