Some people think bankruptcy is an option for “losers”; those are usually the first people that think differently when bankruptcy affects them. Often filing for personal bankruptcy happens as the direct result of changing conditions (e.g. the dissolution of a marriage or the loss of a job). This article contains advice to help you if you are considering bankruptcy.
Be sure you’re doing what’s right before you file for 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.
The most important tip a person filing for personal bankruptcy can remember and follow is to be completely transparent in all dealings. You must avoid the temptation to conceal any valuables, money or other assets from the courts. If they find that you have lied, you may be faced with fines, penalties or the inability to file in the future.
Before you file for bankruptcy, find out which of your assets will be exempt from seizure. Certain assets, as listed in the local bankruptcy regulations, are immune from seizure during bankruptcy. Be sure that you study this list. Make yourself aware of any assets you have that could be seized. If you neglect this important step, you might be blindsided when a possession that is important to you is taken to repay creditors.
Learn of new laws prior to deciding to file for bankruptcy. These laws change regularly and you should stay up-to-date so you can make the best decisions. To learn about any changes, search the Internet or contact your state’s legislative office.
Learn the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Be sure you go on the Internet and do your research to see what’s best for you. If there is anything that you don’t understand, go over it with your lawyer so that you can make the best decision.
Keep in mind that filing for Chapter 7 bankruptcy may affect other people than just you, including family members, and in some cases, business associates. Once you have filed Chapter 7, you, by law, are not responsible for any of your debts that also include your co-debtor. However, if you had a co-debtor, they will be required to pay the debt.
Make sure you act at an appropriate time. Timing is everything, especially in personal bankruptcy filings. While there are times that it is ideal to file soon, there are other times in which you should wait. The professional advice of a bankruptcy lawyer can help you pin down the best time to file given your current financial state.
If you are considering bankruptcy, do not leave it until the last possible moment to do so. Many people simply try to ignore their financial troubles, hoping that they will somehow go away, but this is a huge mistake. All your personal debts will easily go haywire, building and collapsing very quickly. This often leads to foreclosures and garnishments. Once you realize that the debt you have is too much for you to handle, start thinking about talking to a bankruptcy attorney, they can guide you throughout the entire process.
Consider all available options before deciding to file for personal bankruptcy. Think about credit counseling, for example. There are even non-profit companies that may be able to help you. These companies work with creditors to reduce your payments and interest. They collect payments from your and then pay the creditors.
If you pick up a new job shortly before you file for bankruptcy, don’t slow down your filing plans! Bankruptcy may be the solution for you, even with your changed circumstances. Choosing to file can impact you well. Repayment can be evaluated without new income if the filing is posted earlier.
If divorce is in your future, perhaps you should make an effort to resolve the situation before finances become a problem. A lot of people get divorced and immediately have to file for bankruptcy because they didn’t foresee the troubles that were ahead for them financially. Rethinking a plan to get divorced is always a good choice.
Interview several attorneys before you hire one and ask questions about education and experience. There are lots of lawyers available who will be happy to take on your case. And make sure that you do not always go cheap, hire a quality lawyer, they may be better suited to help you.
If for some reason the bankruptcy case gets dismissed because there was a mistake, you are allowed to re-file. However, in most cases you will only have the benefit of the automatic stay for 30 days after you file if your case was already dismissed once. It may be possible for you to get an extension if you have the right documentation and reasoning behind any errors you committed.
Credit Card
Do not think bankruptcy is the answer to getting rid of taxes you owe. There are those filers for bankruptcy who have used a credit card to make tax payments and then filed for bankruptcy. The assumption they are working under is that all of their credit card debt will be treated equally, allowing them to get their tax payment discharged. However, this is already expressly forbidden in bankruptcy law, and you will be stuck with the taxes and the interest that is accruing on the credit card.
Bankruptcy is a valid option to consider once you begin to run out of ways to keep your debts under control. No matter how you arrived at this place, there is help available to reduce the stress you are under. Valuable information is awaiting your attention within the following paragraphs.
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