The process of filing for bankruptcy can bring both stress and relief into your life. A lot of people will go over your finances and find out details about your personal life. On the other side, you will no longer receive calls from bill collectors and you can work on your finances. This article will give you some great tips to help ease the bankruptcy process.
If you are thinking about paying off your tax obligations with a credit card and then filing bankruptcy, think again. In most states, you will still owe money to the IRS and have to take care of the interest of your credit cards. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. This makes using a credit care irrelevant, since bankruptcy will discharge it.
After you have declared bankruptcy, you may have a hard time being approved for unsecured credit. If you find yourself in this situation, you may want to think about getting a secured card or two. This will show people that you are serious about getting your credit record back in order. After a certain time, you will then be able to acquire credit cards that are unsecured.
Be brutally honest when you file for bankruptcy, as hiding assets or liabilities, will only come back to haunt you. When you file make sure whoever is handling the process is fully aware of each and every financial detail. You are in this situation, now help them to give you the best assistance possible to deal with it. You do that by giving full disclosure and holding nothing back.
Never pay for a consult with a bankruptcy lawyer, and ask plenty of questions. Most attorneys offer free initial consultations, and you should take advantage of the chance to interview multiple practitioners. Only choose an attorney once all your concerns are answered to your satisfaction. Take your time before you decide to file after you meet with your lawyer. That gives you the chance to speak to a number of lawyers.
60 Month Period
Before filing for bankruptcy, determine whether Chapter 13 or Chapter 7 is appropriate for your financial situation. If you file using Chapter 7 bankruptcy, you will get all your debts eliminated. You will be removed from any contracts you have with your creditors. With a chapter 13 bankruptcy, a 60 month period of time will be established in which you will repay the as much of your debt as possible. Following the 60 month period of time, the remainder of your debt will be excused. Look into both types of bankruptcy before deciding which one would suit your particular needs.
If you’re unsure, then you need to learn what a Chapter 7 bankruptcy can do for you, as opposed to what Chapter 13 does. Investigate the benefits and pitfalls of both. Online resources may be able to provide all the information you need. Engage your attorney in a conversation about each type, and ask him to answer any questions you may have before deciding which kind is right for you.
If you are making more money than you owe, bankruptcy should not even be an option. Filing for bankruptcy can really damage your credit in the long run, by staying on your report for up to ten years.
Before you decide to file for Chapter 7 bankruptcy, consider how it could affect other people on your credit accounts, such as family members or business partners. When you file a Chapter 7, your debts will be dissolved. However, if you had a co-debtor, they will be required to pay the debt.
Don’t file for bankruptcy without knowing your rights. Occasionally, debt collectors will attempt to convince you that your debt isn’t eligible for bankruptcy. There are only three main classes of debts that are non-dischargable: taxes, child support and student loans. Should you face a creditor like this, and you are informed that the debt is not valid under the bankruptcy. These types of infractions should be reported.
Don’t wait until the last minute to file bankruptcy. Some people think that by ignoring financial problems, they will just disappear. This kind of thinking could prove to be a mistake. It is very common for personal debts to snowball suddenly. When this happens, terrible consequences, such as wage garnishment and foreclosure result. When you make the connection that your debt level is too high, contact an attorney that specializes in bankruptcy as soon as possible, to see what can be done.
Do not omit any information about your finances, assets or debts when filling out your bankruptcy paperwork. Forgetting to add these may cause your petition to be delayed, or even dismissed. You might think some asset or debt isn’t worth bothering with, but you should disclose it just to be on the safe side. Don’t forget about side jobs, loans you’ve taken out or vehicles that might count as assets.
Bankruptcy is both a good and a bad thing; it depends on perspective. Remember that whatever reason you have for taking this step, education is your best weapon during the process. This article should help you learn more about personal bankruptcy. Utilize these tips and let them guide you towards a stress-free financial future.
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