If you are facing the possibility of bankruptcy and are looking for information to help you in your decision, you’ve come to the right place. There are many effective ways to help yourself get back on your feet financially so you do not have to file for bankruptcy. The advice in this article may help you avoid bankruptcy.
Be sure everything is clear to you about personal bankruptcy via looking at websites on the subject. The United States Justice Department, the ABI (American Bankruptcy Institute), as well as the NABCA (National Assoc. Consumer Bankruptcy Attorneys) are excellent sources of information. 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.
Do not pay your taxes with credit cards that will be canceled when you file for bankruptcy. Most places will not consider the debt dischargeable, meaning you will have to pay the IRS a lot of money. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.
Unsecured Credit
After filing for bankruptcy, you could have trouble acquiring unsecured credit. If this happens, instead you should turn your attention to secured credit cards. Having a credit card of any type will allow creditors to realize that you’re attempting to work in the right direction to repair your credit. When you have done well with secured cards for a while, you should be able to obtain an unsecured credit card.
Learn all the latest laws before you file bankruptcy. Make sure to get the most up-to-date information concerning the bankruptcy laws in your state. Check the website of your state’s legislation or get in contact with your local office to learn more about these important changes.
Take advantage of the opportunity to consult with a number of bankruptcy lawyers who offer the first visit at no charge. Ask to speak with the licensed attorney and not a representative, who can not offer legitimate legal counsel. Comparing different lawyers makes it possible to find one with whom you work well.
If your earnings are higher than your expenses then filing for bankruptcy is a waste of time and money. The cost to your credit history far outweighs the simplicity of the easy-out bankruptcy. This is a hard pill to swallow for many.
Make sure bankruptcy is truely your only option before filing. There are many other options including debt consolidation and making payment plans with your creditors. If a foreclosure is your reason for filing look into your options with your bank first, such as a loan modification. A good lender will be able to assist you in a variety of ways, from getting rid of your late charges to reducing interest rates. You may even be able to get a loan extension, giving you the extra time you need to pay your debt off. When push comes to shove, creditors want their money, and they are willing to make concessions to get it and prevent the debtor from declaring bankruptcy.
If keeping your vehicle is of great concern, ask your lawyer if you can secure a payment modification. In many cases, Chapter 7 bankruptcy can lower your payments. There are qualifications, such as the loan being high interest and a good work record for this option.
Chapter 7 Bankruptcy
Think about any co-debtors you have prior to filing for Chapter 7 bankruptcy. A Chapter 7 bankruptcy will relieve you of your legal responsibility to pay any joint debts. Any co-debtor may well be held responsible for paying off the total remaining amount of the debt, though.
Know the bankruptcy code backwards and forwards before filing. Here is one example, an individual who files for bankruptcy cannot transfer any assets for a year before the filing date. In addition, it is unlawful for the filer to increase the amount of debt they are carrying on their credit cards right before they file.
Every single piece of financial information you have needs to be studied and properly listed when filing a bankruptcy claim. If you do not do so accurately, your petition could be dismissed, or at the very least delayed. No sum is too small to be included; err on the side of caution and include everything. This includes any jobs you have on the side, any vehicles you have and any outstanding loans.
Do not get sizable cash advances from credit cards before filing for bankruptcy because you think the debt from the cards will be erased., This fraudulent practice is a demonstration of bad faith. Debts you incur this way will likely not be discharged in a bankruptcy, and you will still have to repay them.
Many people who have filed for bankruptcy, resolve to never use credit or credit cards again. This may not be such a great idea because you still need credit to to help build better credit. If you never use credit, you won’t be able to rebuild the good credit that you will need to make future purchases. Start with one credit card to get your credit going in the right direction.
If you feel that bankruptcy filing may be right for you, seek some legal advice first from a specialist lawyer. A reputable lawyer can explain the bankruptcy process and be your representative in court on your behalf. Your lawyer also knows how to properly file the paperwork and can answer any questions that you have.
Your filing should include all debts and creditors you need to eliminate. Debts that you leave out of your filing paperwork will not be addressed during the bankruptcy proceedings. It’s your duty to be sure you have everything written down that is important because some debts that could have been discharged may be missed.
Proper planning is the best place to start. If you can give yourself more time, do it. The most important thing here is that you understand that knowledge is power in filing a claim. Now come up with a plan and put yourself in a good position going forward.
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