The decision to file for bankruptcy is very serious and should not be taken lightly. Use this article’s advice to learn what you are in for and how to make proper choices. Then, you can make a decision based on what you learn.
Individuals often seek to file for personal bankruptcy protection if their debts exceed their ability to repay them. When you are faced with this issue, begin to familiarize yourself with your state’s laws. Each state has its own set of rules regarding bankruptcy. Your home is safe in some states, but in others it’s not. See to it that you understand the bankruptcy laws in the area that you live prior to filing.
Don’t think that loading up your credit card with tax debt and then filing for bankruptcy is an answer either. You will find few states that discharge this kind of debt. You may also wind up owing a lot of money to the IRS. In most cases, you can use the adage that “a dischargeable tax is a dischargeable debt.” So it does not help you to put the tax bill on your charge card if you know the debt will be discharged anyway.
Be certain you are making the right choice before you file for bankruptcy. You have better options. For example, you could try credit counseling. Be sure to consider all options before filing for personal bankruptcy, as this will take a large toll on your credit score for the next ten years.
If filing bankruptcy is in your future, don’t waste any savings you may have attempting to pay off your debts. You should never touch your retirement accounts, unless you have absolutely no choice. While dipping into your savings is likely to be necessary, avoid wiping it out completely to prevent leaving yourself with little financial security in the future.
Always remind your lawyer of specifics that are important to your case. Never assume that they can remember all details without reminders. Don’t be afraid to speak up, as it is your case and your future will be affected by its outcome.
Be aware of recent changes, if any, in the bankruptcy code. Laws are subject to change, and it’s important that you’re educating yourself about current code only. A qualified bankruptcy attorney is the best source for the latest information regarding the laws in your state.
Initial Filing
After your initial filing, take time to enjoy yourself a bit and get your mind off of it. It can be several months between the initial filing and the final discharge of debts. That stress can lead to depression, if you don’t take the right steps in fighting it. Life will surely get better after you finish this process.
Find out about lowering the cost of the payment you pay monthly on your car, if you are afraid of losing it. Filing for Chapter 7 can help to lower your monthly payments on possessions such as your vehicle, helping to ease your financial load. You need to have bought your car 910 days before you file, have a loan with high interest and you’re also going to need a good work history.
Make sure you consider implications of bankruptcy before filing for Chapter 7. When you file under Chapter 7, you will no longer be legally responsible for any debts that were signed by yourself and a co-debtor. However, anyone sharing the loan with you may be forced to pay back the entire amount for the amount in full, which spell financial disaster for them.
Research your state’s bankruptcy laws before filing your petition. The bankruptcy code contains several provisions that can raise serious obstacles in your case. If you commit severe mistakes, your bankruptcy could be dismissed. Make sure you are fully aware about personal bankruptcy before you make any final decisions. Doing this will make the process easier.
The first step to making your bankruptcy successful is to turn over a new leaf and decide to manage money better. Avoid running up current debts or taking on new debt just before filing for bankruptcy. Filing bankruptcy should be your first sign that the way you’re living isn’t any good. Now’s the time to get your finances in order so that you can pull your credit out of the gutter. What responsible behavior will ultimately demonstrate is that you’re on the right path. The longer you’re able to show this, the more seriously you’ll be taken by creditors.
As is evident from the information you just read, the bankruptcy process takes time. There is a long list of items you need to do, and make sure they are done correctly. Hopefully, with what you learned today, you learned what it means to file for bankruptcy and you can avoid being in this situation in the future.
This is a limited-time offer. We are not able to guarantee availability if you wait!
