Filing bankruptcy is a bit complicated. Different bankruptcy filing types are available, and the right one for you will depend on the kinds of debts you have and your overall financial picture. Before deciding to file for personal bankruptcy, you should learn everything you can about it. The tips included in this article should give you some direction as you go through the process of deciding to file and filing for personal bankruptcy.
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. The fact is that the credit card debt will be ineligible for discharge, and your tax debt may increase. Remember that if you can discharge the tax you can discharge the debt. This means using a credit card is not necessary, when it will just be discharged.
Consider all options before deciding to file for personal bankruptcy. You have better options. For example, you could try credit counseling. Your credit score will be forever effected by bankruptcy, which is why you should do everything else in your power to resolve matters first.
When you feel certain that you must file for personal bankruptcy, refrain from squandering your life savings to pay off unsecured debt. You should never touch your retirement accounts, unless you have absolutely no choice. Although it is quite normal to use some of your savings, ensure that you leave enough in your account for emergencies.
It is essential when going through bankruptcy that all of your income and assets are reported openly and honestly. 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.
Unsecured Credit
After filing for bankruptcy, you could have trouble acquiring unsecured credit. If that’s the case, it is beneficial to apply for one or even two secured cards. This demonstrates to creditors that you are making a good faith effort to repair your credit. In time, you might be granted unsecured credit again.
Although you can find many bankruptcy attorneys listed in your local Yellow Pages or online, it’s best if you can find one through the personal recommendation of a friend, family member or acquaintance. Don’t allow yourself to be taken advantage of by predatory lawyers just because you are filing for bankruptcy. It is important to find someone trustworthy.
No good will come of trying to conceal your assets or your liabilities in the bankruptcy process; you want to be scrupulously honest when you declare bankruptcy. All of your financial information, be it positive or negative, must be disclosed to those in charge of filing your case. They need to know it all. Don’t hold anything back and formulate a smart strategy to deal with the reality you are facing.
It is important to understand your rights when filing bankruptcy. If you’ve had collateral, such as a car, electronics, or jewelry repossessed for non-payment, you might be able to recover the property when you file for bankruptcy. Any property repossessed within 90 days before filing bankruptcy, may be able to be returned to you. Consult with a lawyer who can advise you on what you need to do to file a petition.
Any bankruptcy consultation should be free of charge. It is a good idea to consult several attorney before deciding on one. Therefore consult with different lawyers and get a feel for them, then decide which one suits your needs You need not decide right away. Consulting with several attorneys will also help you find someone you trust.
Before you decide to file bankruptcy, be sure to check for any new laws that may apply to your case. 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. Your state’s website should have the information that you need.
Chapter 7
You may have heard bankruptcy referred to differently, either as Chapter 7 or Chapter 13. Learn the differences between the two before filing. The Chapter 7 variety can help you eliminate your debts almost entirely. You will no longer be liable for any money that you owe to your creditors. If you choose to file for Chapter 12 bankruptcy, you’ll be put into a 60-month plan for repaying your debts before they’re eliminated. When choosing the type of personal bankruptcy that is correct for you, it is very important that you know the differences.
Now you can probably see that filing bankruptcy is a decision that is best thought out carefully before pursuing. If you decide that it makes sens for your financial situation, you can benefit from working with an attorney who is experienced with personal bankruptcy, so that you can make the experience the beginning of your new, clean financial slate.
This is a limited-time offer. We are not able to guarantee availability if you wait!
