If you are faced with the threat of repossession of valuable assets, you may become terrified of the IRS. Declaring personal bankruptcy can stop harassment from debt collection agencies and provide you with a fresh start for getting your finances on the right track. Continue reading for some useful tips to help guide you through this potentially stressful process.
The most important tip a person filing for personal bankruptcy can remember and follow is to be completely transparent in all dealings. You can lose the right to file bankruptcy now or in the future if you try to withhold information about your assets and income. So it is critical that you disclose everything honestly to to avoid that and any other penalties the trustee might impose if he discovered your attempt to hide information from the court.
Find a bankruptcy attorney who offers free consultations, and ask lots of questions. Most lawyers will meet with you for free and give you helpful advice, so meet with several. Make your decision after all of your questions have been answered. It’s isn’t necessary to make a choice right away. This offers you the opportunity to speak with other attorneys.
Chapter 13 Bankruptcy
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. You can keep personal possessions, as well as real estate, while paying into a debt consolidation system. This lasts for three to five years and after this, your unsecured debt will be discharged. Remember that if you even miss one payment that’s due under this plan, the court could dismiss the whole case.
Never forget that you still deserve to enjoy life while you go through the bankruptcy process. After filing, many people find themselves stressing over their situation and how to fix it. You do not want to have to deal with depression in addition to your financial troubles, so you should take steps to keep yourself happy. Once the process if over, your life will improve.
Bankruptcy can be overwhelming to most people, and can be quite stressful. To have a reliable and trustworthy guide through the process, find a highly qualified attorney. Don’t let cost be the sole factor in who you hire. Your attorney does not need to cost a lot, but they do need to have a lot of experience. Ask for referrals from folks who have filed and check reputations with the BBB. Try to get a referral from a trusted friend or family member.
Learn about the personal bankruptcy rules before petitioning. When it comes to the code of personal bankruptcy, a large number of loopholes exist that could be troublesome. It is even possible to make the sorts of errors that can cause your case to be dismissed. Before continuing, research personal bankruptcy. This will make the bankruptcy process much simpler.
Think about other options before you file for bankruptcy. Consider credit counseling. There are non-profit organizations that you can use. They will negotiate with your creditors in order to reduce your payments and interest rates. You can even pay your creditors through them.
Don’t drag your feet figuring out if bankruptcy is the right thing to do. Although it may be tough to admit you are in financial trouble, the more you wait the higher the debt becomes. 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.
Understand that in the long run, a bankruptcy filing may be better than continued missed paymsent when it comes to your credit score. Although your credit will take a big hit, you can begin to repair it immediately after filing bankruptcy. One of the nicest things about bankruptcy is that it gives you a fairly fresh start.
Credit Cards
After filing bankruptcy, many people refuse to use credit cards or get loans. This is not a good decision on their part because credit cards help in building good credit. If you don’t use your credit, you won’t be able to make big purchases on credit in the future. You can rebuild your credit slowly, beginning with just one credit card.
Before you file for personal bankruptcy, become more fiscally responsible. Don’t go on a spending spree or increase your debt right before you file. Creditors and judges look at your current and past financial history when they make a decision about your personal bankruptcy. Show that you are making a positive change to your current financial situation.
After a few months have passed since your bankruptcy finished, go to the credit reporting agencies and get your credit report. You should double-check all the information on those reports to ensure their accuracy. If you notice any errors, address them immediately so you can start rebuilding your credit.
Be sure the lawyer that you choose is very experienced in bankruptcy law. Rest assured, however, that you can find an ample selection of qualified attorneys. You may also want to check with your state’s bar association and the better business bureau to make sure your attorney is in good standing.
If a mistake causes your case to be dismissed, you may re-file. However, if this is the case, the automatic stay will only cover you for 30 days the second time you file. It is possible to get an extension if you can prove to the judge that there was a good reason for your mistake and your re-filing.
While filing for bankruptcy protection can be a useful option, make sure you also investigate other alternatives. Be aware that some debt consolidation companies could cause you even more debt. Keep the tips here in mind as you navigate through your financial challenges, and prepare yourself for a more successful financial future.
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