Are you having trouble with money? Are you starting to consider the possibility of bankruptcy? You’re in good company. Many people, over the past few difficult years, have found that bankruptcy is the only way to get out from under their mountain of debt. This article can help you make sure the process starts properly.
Be certain to gain a thorough understanding of personal bankruptcy by using online resources. The US 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, the better equipped you’ll be to make the wise decisions needed for a successful bankruptcy.
Credit Cards
Do not pay your taxes with credit cards that will be canceled when you file for bankruptcy. In most states, you will still owe money to the IRS and have to take care of the interest of your credit cards. Generally speaking if you can discharge the tax, you can discharge the debt. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.
Always remind your lawyer of specifics that are important to your case. Do not assume that if you’ve already told him or her something important once, that they will remember it later without a reminder. Do not hesitate to speak up; this is your hearing and your future is on the line.
After a bankruptcy, you may not be able to receive any credit cards. If this happens to you, think about applying for a couple of secured credit cards. 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.
Find out what you exemptions are prior to filing bankruptcy. The Bankruptcy Code includes a list of the types of assets that are exempt from the bankruptcy process. You need to compare this list to the assets you own so that you are not surprised when certain assets are seized. If you aren’t aware of this, you could lose some assets that you value.
When filing for bankruptcy it is crucial that you are candid and not concealing any liabilities or assets, as it will only show up in the future. Good or bad, you must tell your bankruptcy attorney everything about your financial situation. Be completely honest in your paperwork to avoid a situation that may end in severe punishment.
Since the majority of attorneys are willing to provide no-cost initial consultations, it is smart to meet with more than one before you make a selection. Make sure that you meet with an actual lawyer and not an assistant or paralegal, as these people are not allowed to provide legal advice. Take some time to talk to different lawyers to find one that fits your needs, and meshes well with you.
Put forth the effort to grasp the distinctions between Chapter 7 and Chapter 13 bankruptcies. Read up on the topic and familiarize yourself with the benefits and drawbacks of both variations. Do not hesitate to have your lawyer explain any details that seem difficult to grasp. This will help ensure you make the right choice when filing.
When your income surpasses your bills, you should not be filing bankruptcy. Although bankruptcy may feel like a simple method of getting out of your large debt, it leaves a permanent mark on your credit history for up to 10 years.
Think about all your options before pulling the trigger. There are many other options including debt consolidation and making payment plans with your creditors. If you are about to lose your house, talk to your lender about a loan modification. Your lender can help you get current on your loan by offering you one of a number of modifications, such as getting rid of late charges, lowering interest rates, or extending the length of the loan. 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.
As mentioned before, you are not alone in your bankruptcy journey. However, thanks to the piece above, you are better prepared to face the challenges that may come your way. Use the information here to help see you through a smooth bankruptcy.
This is a limited-time offer. We are not able to guarantee availability if you wait!
