When you’re indebted to people or institutions, it’s only a matter of time before they show up at your door to collect. Sometimes literally. Stop getting debt collector calls and figure out your finances by considering filing for personal bankruptcy. Continue ahead for some excellent tips that will ease you through the bankruptcy process.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. In many areas of the country, this debt will not be dischargeable, and you could be left owing a significant amount to the IRS. Transferring the debt to another medium (e.g. a credit card) won’t magically make a tax debt discharagable, either. 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.
Don’t hesitate to give your attorney a heads-up about something she has missed. Don’t just assume that the attorney will remember it automatically. This is your future in their hands, so don’t be scared to mention it.
Unsecured Credit
After you have declared bankruptcy, you may have a hard time being approved for unsecured credit. This being the case, look at secured card options. By doing this, you will be letting people know that you want to fix your credit score. After a time, you are going to be able to have unsecured credit cards too.
Use a personally recommended bankruptcy attorney instead of one found through the Internet or phone books. There are way too many people ready to take advantage of financially-strapped individuals, so you must ascertain that your attorney can be trusted.
Prior to filing your bankruptcy petition, go over the list of assets that cannot be seized by creditors. The Bankruptcy Code includes a list of the types of assets that are exempt from the bankruptcy process. It is important to be aware of this list so you will know what assets are saved. If you neglect this important step, you might be blindsided when a possession that is important to you is taken to repay creditors.
Take advantage of free consultations with lawyers and the ability to sift through and find the right one. Ensure that you have a meeting with a real lawyer instead of an assistant, since they can provide the best advice. It will be important to work with a bankruptcy lawyer that you feel comfortable with; a little comparison shopping will help you find the right one.
It is important to protect your home when filing bankruptcy. You do not have to lose your home in the process of a bankruptcy. It may be possible to keep your home if the value has depreciated, or there is a second mortgage. If you meet certain criteria, you may be able to retain ownership of your home even after filing for bankruptcy.
If you are making more money than you owe, bankruptcy should not even be an option. Bankruptcy may appear like the easier way to avoid paying your old bills, but it is a huge mark on your credit score and remains there for up to 10 years.
Do not wait until things go from bad to worse before filing bankruptcy. Lots of people turn the other shoulder towards their financial woes and hope that they’ll disappear eventually. However, you should never do this. Debts can multiply very quickly, and can result in you losing money to wage garnishment, or even losing assets that are part of a secured loan. As soon as you find yourself experiencing financial problems, take action and discuss your options with a bankruptcy attorney.
Be certain to be transparent about all of your financial information when the filing of for personal bankruptcy. If you forget any items, your filing could be rejected. The most meaningless, innocuous finance or expenditure needs to be listed when you file a claim. Some things to be included are: current loans, valuable vehicles and side jobs.
Bankruptcy Filing
Exercise some caution in repaying your debts when you know a bankruptcy filing in your future. Bankruptcy rules generally outlaw repayment of creditors in the 90 days leading up to a bankruptcy filing, a period that is extended to one year when it comes to payments made to family members. Do not make a decision about filing until you are aware of all the current rules regarding bankruptcy.
Adopt a positive attitude toward filing for bankruptcy and researching the topic. Although it may be tough to admit you are in financial trouble, the more you wait the higher the debt becomes. Take responsibility to talk with a bankruptcy expert sooner, rather than later. The longer you wait, the more difficult the situation can become.
Remember that just because you have filed for personal bankruptcy it will not cause you to lose everything you own. You will be able to keep personal property. You may keep personal items like jewelry, household furnishings, clothes and electronics. The personal items that you are allowed to keep will depend on your home state’s individual bankruptcy laws, your personal financial situation and the specific bankruptcy that you are filing for.
Check out every other possible solution before settling upon the idea of filing for personal bankruptcy. Be aware that some debt consolidation companies could cause you even more debt. Keep these tips in mind so you can avoid debt in the future.
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