Feeling sad and frustrated are a couple of the many emotions people feel when going through bankruptcy. Those who find the need to file often worry about how they will be able to pay debts and live their daily life. They think they are stuck, but they really aren’t, and neither are you, thanks to the following tips.
Before making the decision to file for bankruptcy, be sure to do some research and learn all you can about the subject. There are many websites available that offer this information. The U.S. D.O.J., the A.B.I and the N.A.C.B.A. are all useful organizations willing to provide educational material. The more you know, you can be confident you are choosing the right thing and that you are taking the right road to make sure your bankruptcy proceeds as easily as possible.
If you are thinking about paying off your tax obligations with a credit card and then filing bankruptcy, think again. In many areas of the country, this debt will not be dischargeable, and you could be left owing a significant amount to the IRS. A common rule is that dischargeable tax means dischargeable debt. It is pointless to use credit cards if they can be discharged.
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. You might feel tempted to not declare certain assets in your bankruptcy in order to protect them from forfeiture, but if you’re found out, the process could take longer, or worse, you might be banned from filing for bankruptcy completely.
After filing for bankruptcy, you could have trouble acquiring unsecured credit. Look into getting a secured credit card in order to get back on your feet with building credit. This will prove that you want to improve your credit score. If you do well with a secured card and make strides to repair your credit, you will ultimately be able to receive an unsecured card.
Ask those you know if they have an attorney to recommend, instead of finding one on the Internet or in the phone book. Don’t be taken in by some fly-by-night company that exists only to profit from the suffering of others. Check out any lawyer you are considering thoroughly before engaging him or her.
No matter what, don’t give up! Bankruptcy might help you get back things you thought you’d lost and had repossessed, such as electronics, vehicles and jewelry. You may be able to recover repossessed property if the repossession occurred fewer than 90 days ago. Interview and research attorneys before choosing one to help you with your bankruptcy.
Learn the newest bankruptcy laws before filing. Laws are subject to change, and it’s important that you’re educating yourself about current code only. To know what these changes are, go to your state’s website or contact the legislative offices.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Read up on the topic and familiarize yourself with the benefits and drawbacks of both variations. If you do not understand what you are reading, talk to your attorney before making that serious decision.
Chapter 13
Research Chapter 13 bankruptcy, and see if it might be right for you. If you owe an amount under $250,000 and have a consistent income source, Chapter 13 may be right for you. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. This plan normally lasts from three to five years, in which you’ll be discharged from unsecured debt. Just ensure that you take necessary precautions, as missing one payment can result in the court dismissing your case.
Do not forget to be around those you love. Going through bankruptcy is a lot of stress. It is long, stressful and makes people feel like losers. A lot of people become depressed and withdrawn until their bankruptcy is discharged. You shouldn’t do this, though, as staying away from the world can amplify any emotional issue you are having, and they could even morph into full-blown clinical depression. Therefore, it is important that you continue to spend quality time with your loved ones despite, in spite of your current financial situation.
If you have fears that you will lose your car, ask your lawyer about the possibility of lowering your car payments. In many cases, Chapter 7 bankruptcy can lower your payments. You need to have bought your car 910 days before you file, have a loan with high interest and you’re also going to need a good work history.
Car loans or mortgage loans are still a possibility when you have filed for Chapter 13. It is much harder. You will have to get this loan approved by your trustee. When you meet with your trustee or financial adviser, make sure that you come up with a sound budget proposal. Also, you need to be ready to say why you’re going to need the item.
Bankruptcy is a difficult and stressful process, and you will need all the help you can get. In order to keep things together and protect yourself from excess stress, be sure to hire a competent attorney. Make your hiring decision based on several criteria, not just on price. It is not necessary to engage the lawyer who charges the highest fees; all you need is a lawyer of high quality. Make sure people who have experienced bankruptcy give your referrals. You might want to visit a court hearing and observe lawyers handling their cases.
After reading, you can see you do have options available, and bankruptcy does not signal the end of the world. Bankruptcy is a serious matter, but it can be managed. Using the tips you have learned here, you can start to pull yourself out of the financial hole you are in.
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