Learning more about the process of bankruptcy is, sadly, something that a lot more people have to do today. The economy has hit many people from all walks of life hard. Before you begin to file bankruptcy, it’s imperative that you know how it works so you can make wise decisions. This article will help you to make the best choices.
Don’t think that loading up your credit card with tax debt and then filing for bankruptcy is an answer either. In most states, this is not dischargeable debt. Therefore, you will end up owing the IRS a lot of money. Should the tax be dischargeable, the debt is often dischargeable as well. So, in short, do not use your credit cards to pay off debts right before you file for bankruptcy.
Don’t ever pay a bankruptcy attorney for a consultation, and ask a lot of questions. When you arrive at a consultation ask plenty of questions. You should also seek free consultations from several attorneys prior to choosing one. Only make your decision if all your questions and concerns are adequately addressed. You don’t need to decide what to do right away. You can take your time and check out several attorneys before making your final selection.
There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. Research them online to see the positive and negative aspects of each one. If something doesn’t make sense to you, go over it with your lawyer prior to choosing which one to file.
Don’t file for bankruptcy unless it’s absolutely necessary. You may find consolidating your debt may be simpler. Filling for bankruptcy could be a long and stressful process. In addition to the stress associated with bankruptcy, you will also have to deal with severely restricted credit in the future. Because of this, filing for bankruptcy should only be used as a last resort.
After you have filed for bankruptcy, enjoy your life. It’s easy to be stressed during this time. Depression and burn-out from pent of stress will do nothing to help your situation, so it is critical to let go a little. Once your petition is in the hands of the judge, all you can do is wait.
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. 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.
If you are considering bankruptcy, do not leave it until the last possible moment to do so. The judge reviewing your petition will consider your recent behavior, purchases, income and payments when making a decision. Personal debts can spiral out of control very quickly, and if you don’t take care of them, you may find yourself facing foreclosure or wage garnishment. The minute you realize that your debts are too big to take care of, contact a bankruptcy attorney to discuss your options.
See to it that you are aware of the laws concerning bankruptcy before you consider filing. For example, it is forbidden for an individual to transfer any assets away from the name of the filer within the twelve months preceding filing. Also, the filer can not increase their debt before filing.
As you are heading towards a bankruptcy filing, don’t be tempted to run up cash advances on your credit cards in the belief they will be erased in the legal proceedings. This is fraud, and even if your other debts are discharged, you will have to pay the money back.
An attorney who specializes in bankruptcy law can be a good investment if you find yourself thinking about filing. 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.
Do your research before hiring a bankruptcy attorney. This type of legislation is popular for the inexperienced. Be sure your lawyer has years of experience and is licensed properly. If you want to check for a proper lawyer, you can use the Internet, ask your friends, or look for a popular lawyer via the Yellow Pages. The idea is that you want to ensure your lawyer’s competency on the issue.
After a few months have passed since your bankruptcy finished, go to the credit reporting agencies and get your credit report. Check that your reports accurately reflect all your closed accounts and discharged debts. You want to start building up your credit score from an accurate base, so it’s important to address any errors you find in your reports immediately.
Be certain to create a list that displays all the debts you want discharged when you file. If you posses debts that aren’t listed in the paperwork, they wont be included in your discharge. It is up to you to ensure your debts are written down so you don’t need to pay bills that might have been discharged.
Regardless of how dire your situation may be, candor is critical. Lying about debts and assets is a huge mistake. This activity is illegal. If you fail to declare certain assets or debts, you may be held criminally liable for the omission if it was found to be intentional.
Most attorneys make a free service available to deal with creditors who are constantly calling about your debts. All you have to do is give the number for the attorney’s office, which allows them to confirm the validity of your bankruptcy. This should keep the collector from calling you again.
Clearly, the economy nowadays has had a dreadful effect on individuals and has caused bankruptcy to be a topic that is on everyone’s minds. Apply the tips from this article to make the best bankruptcy choices.
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