Mention of the word, “bankruptcy” is enough to terrify many. The piling on of debt and not being able to support their family is an awful situation for many to ponder. If this troubles you, or if you are dealing with this nightmare now, the following information is required reading.
It is essential when going through bankruptcy that all of your income and assets are reported openly and honestly. 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.
Before filling for bankruptcy, determine which assets will be exempted from seizure. The kinds of assets which may be exempted during bankruptcy proceedings are listed in the Bankruptcy Code. It is crucial to read the list before you file for bankruptcy so you know whether your favorite items will be taken. If you fail to go over this list, you may be unpleasantly surprised sometime down the road if any of your most valued items are seized.
Before pulling the trigger on bankruptcy, be sure that other solutions aren’t more appropriate for your case. For instance, a consumer credit counseling program may be a better bet if your debts are relatively small. It may also be possible to get lower payments, but if you do, be sure to obtain records for any consensual debt modifications.
File when the time is perfectly right. When you time things right, it does you good, especially when you’re filing for personal bankruptcy. Sometimes, it is good to file immediately, but sometimes it is smarter to wait until you have passed through the worst of things. Discuss your particular situation with your bankruptcy attorney to determine the best time to file.
Bankruptcy should not be put off until the very last second. Lots of people turn the other shoulder towards their financial woes and hope that they’ll disappear eventually. However, you should never do this. If you have failed to make payments for several months but have continued making purchases on credit, your petition may be denied. As soon as you see your debts getting out of control, seek the counsel of a good bankruptcy attorney to see what your options are.
Do not get sizable cash advances from credit cards before filing for bankruptcy because you think the debt from the cards will be erased., This is illegal. It’s fraud, and you can still be responsible for paying it back even after declaring bankruptcy.
Realize that bankruptcy may be better for you when it comes to your credit. Continuing to miss your payments can be really bad on your debt. The good news here is that, even though the bankruptcy claim will leave a decade-long stain on your credit score, you can still work to repair your credit. The best aspect of bankruptcy is the fact you can have a new start.
If you’re thinking about filing bankruptcy, also think about hiring a lawyer. Skilled lawyers have the ability to counsel you on whether you ought to file for bankruptcy and can also handle court appearances. Also, a lawyer can assist you with paperwork and give you the answers you are looking for.
Include all of your debts that you wish to be erased on the bankruptcy filing papers. Any debts omitted from the paperwork will not be covered in the discharge. Double-check the paperwork before you file it. Otherwise, you might be liable for debts that you could have gotten rid of during bankruptcy.
If you’re thinking of getting divorced, evaluate the financial consequences of doing so. Many people who divorce must immediately file bankruptcy because of unforeseen financial difficulties. Divorce is not always the best option and should be carefully considered before proceeding.
Don’t lie when you file for bankruptcy, even if you situation is pretty dire. Lying concerning your financial situation will not help you out of this situation. Not only will it affect your filing, it is illegal. Lying about your assets and debts could get you a lengthy prison stay.
Credit Card Debt
If it looks like you’re in for a big hit on your taxes, don’t necessarily assume bankruptcy is a way out for you. Filing for bankruptcy does not exempt you from paying your taxes. The assumption they are working under is that all of their credit card debt will be treated equally, allowing them to get their tax payment discharged. But, this practice is prohibited by the bankruptcy code, and you will be responsible for the tax bill as well as the credit card debt.
People who are afraid of bankruptcy have good cause to be; the process can be scary and stressful. If you understand all of the ins and outs of personal bankruptcy, you need not fear it. Use the bankruptcy information in this article to make your financial life yours again.
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