Always take the bankruptcy process seriously. You need to be as well-informed as possible when you make bankruptcy decisions. The advice in this article will get you off to a good start. Deciding whether or not to file for bankruptcy is a big decision. Proper and thorough research can alleviate some of that pressure.
Credit Cards
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. In most states, you will still owe money to the IRS and have to take care of the interest of your credit cards. If the tax has the ability to be eliminated, the debt can be too. Therefore, you should not pull your credit card out for purchases if it is just going to be discharged during the bankruptcy.
It is essential that you are honest and forthright in the documentation you provide for your bankruptcy filings. To avoid problems, penalties and future re-filing bans, resist the urge to hide documentation or assets.
Be sure to bring anything up repeatedly if you are unsure if your lawyer is focusing on it. Chances are that you may have forgotten to tell them about certain specifics that may be important to your filing. It’s your financial future that is in his hands; don’t hesitate to speak up.
Stay positive. Certain property cannot be repossessed while you are in the process of filing for bankruptcy so be sure to learn about the laws in your state. If you have property repossessed less than ninety days prior to filing your bankruptcy, you may be able to get it back. Get help from your lawyer to file a petition so you can get your items back.
If you are considering filing for bankruptcy you definitely need to hire an attorney. You might not understand all of the various aspects to filing for bankruptcy. A bankruptcy attorney can advise you on how proceed properly.
Do some research about laws and legislation before filing. This area of law is in constant flux and it is imperative that you know where the law stands at the time you file for your bankruptcy. If you are not sure about the current laws all you have to do is look into what laws have been passed.
Take steps to ensure your home is protected. Filing for bankruptcy doesn’t automatically involve losing your home. You might be able to keep your home, contingent on certain factors, such as your home decreasing in value or having a second mortgage. You are still going to want to check into homestead exemption either way just in case.
Debt Repayment Plan
Filing for bankruptcy should not be done on a whim. Talk to a bankruptcy lawyer to see if a debt repayment plan or reduction in interest rates is a viable option for you instead of bankruptcy. If foreclosure looms, think about getting your loan plan modified. Your creditors will be willing to work with you to allow you to pay off your debts. They may be able to take late fees off of your account, cut down your interest, or even extend the loan’s repayment period. At the end of the day, creditors want to get paid, and sometimes a debt repayment plan is preferable to dealing with a bankrupt debtor.
Before you file for personal bankruptcy, become more fiscally responsible. Avoid incurring new obligations or allowing existing debt to grow in advance of your bankruptcy. Creditors and even judges look at your current and past history when they are going through your bankruptcy paperwork. Your current spending behavior should show that you are making a real effort to modify your financial habits.
List any debt you have. You will need this list when you file, so it is important for it to be as compete as possible. Always go through your statements and get exact numbers. Take your time and make sure all the numbers are correct.
When it comes to filing for bankruptcy, never lie, no matter what your financial situation is like. Lying or hiding information about your finances is a very bad mistake. Aside from that, it’s against the law. You could even spend time in prison for lying about this information.
Some attorneys offer a phone service for free where creditors will be referred to when they wish to contact you regarding an account that’s delinquent. If you receive a call from a debt collector, simply provide them with this phone number and any relevant information to prove that your bankruptcy has cleared your debt. Just be sure that they are a legitimate business to safe guard your personal information. Then, you won’t have to worry about any further harassing phone calls.
Before you file for personal bankruptcy, check to make sure that all your problem debts will be cleared by bankruptcy. Certain classes of debt, including taxes, child support, and student loans, are not eligible for bankruptcy. For that kind of debt, attempt going to a loan consolidation service or credit repair agency.
You may have your case dismissed because of errors. Normally you can re-file in this case. But, generally speaking, the automatic stay will apply for 30 days only if you have already received a prior dismissal. If you can prove to the court that it was an honest error that couldn’t be avoided, it may be possible to get that 30-day stay pushed out further to give you more time.
A lot of people do not realize that there is more than one type of bankruptcy before they read this article. Don’t stress about the amount of information before you. Take some time to figure things out. Take your time and think carefully about your decision before taking action.
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