Although unhappy circumstances in your life might have led you to file for bankruptcy, your life post-bankruptcy can be much better. Once you have completed the bankruptcy process you can begin anew with a clean slate. The article you’re about to read contains great information on bankruptcy and how you can proceed with filing a claim.
Be sure everything is clear to you about personal bankruptcy via looking at websites on the subject. The US DOJ, along with a number of other bankruptcy institutes and attorneys specializing in bankruptcy can give you invaluable information. The more you know, the better equipped you’ll be to make the wise decisions needed for a successful bankruptcy.
Don’t use credit cards to pay your taxes if you’re going to file bankruptcy. In a lot of places, the debt cannot be discharged, and you may still owe money to the IRS. In most cases, you can use the adage that “a dischargeable tax is a dischargeable debt.” So as you can see, in this situation there is no need to use the card when the debt will be discharged when you file for bankruptcy.
If you suspect that bankruptcy filing may be a reality, don’t try to discharge all your debt in advance by emptying your retirement or saving accounts. Unless there are no other options, your retirement funds should never be touched. Of course you will have to touch some of your savings to get through all of the hearings, but do not put out any money that you do not have to by law.
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. As long as you are not hiding income or assets from the courts, you can ensure that there are no difficulties with your petition. This will save you from having your petition dismissed and your debts dropped from re-filing.
Do not be afraid to remind your attorney of important specifics of your case. Don’t just assume they already know and that they have these important details committed to memory or written down. It is in your best interest to speak out. You are in control of the outcome of your bankruptcy.
If you are meeting with a lawyer to discuss bankruptcy, the initial consultation should be free so ask every question you have. Most attorneys offer a free consultation which you should take advantage of. Meet with a few before finalizing your plans. Only choose a lawyer if you feel like your questions were answered. You can think about your decision before making a commitment. This allows you time to speak with numerous lawyers.
Before declaring bankruptcy, be sure you’ve weighed other options. For example, if you only have a little bit of debt, you might be better off if you went through consumer credit counseling. You should also try negotiating a payment plan with your creditors; make sure you get a written agreement of the new payment plans.
60 Month Period
You may have heard bankruptcy referred to differently, either as Chapter 7 or Chapter 13. Learn the differences between the two before filing. Chapter 7 eliminates all debts. Your ties with all creditors will get dissolved. 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. In order to choose the right bankruptcy option, you need to know the differences between these kinds of personal bankruptcy filings.
A great tip to remember if you have filed for Chapter 13 is that you will still be able to receive a loan, so you shouldn’t refrain from trying. There will, however, be obstacles. You will have to see your trustee and the approval for this new loan. When you meet with your trustee or financial adviser, make sure that you come up with a sound budget proposal. You should also be prepared to explain why you need to purchase the item.
Don’t drag your feet when it comes to filing bankruptcy. Some people will just ignore their outstanding debts, hoping that someone or something will come and save them, but this never ends well. It is very common for personal debts to snowball suddenly. When this happens, terrible consequences, such as wage garnishment and foreclosure result. Speak with a bankruptcy lawyer as soon as you become aware that you cannot handle your debts.
If you are thinking about filing for bankruptcy, one of the first things you should do is look into the laws of your state. For instance, somebody cannot transfer assets from a filer’s name up to a year after they file. Also, it is illegal to load up your credit cards with debt right before filing occurs.
Don’t put off handling the research or procedures for the bankruptcy process if that is the route you’re taking. Although it may be very difficult to admit that bankruptcy is the answer for you, it will be much harder to continue spiraling into a debt quagmire. Speaking with a professional in a timely manner will allow you to receive sound advice that can help you before things get out of hand.
Judging from the information contained within the article alone, you can now see that there are ways to get out from under the piling debt. However, the story that gets written after bankruptcy does not have to be depressing too. In fact, if you apply the ideas and advice given in this article, you can truly make bankruptcy a turning point in your life towards better days.
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