It’s hard to make the decision of filing for personal bankruptcy; however, sometimes there’s no choice. If you are thinking about filing for bankruptcy, it’s best to be armed with as much information as possible. Keep reading for information that can help you get through this trying time.
You can find a wealth of information concerning personal bankruptcy by searching for websites which offer information about it. The United States Department of Justice, NACBA, and American Bankruptcy Institute websites are all great places to go for up-to-date information. Knowing as much as possible about bankruptcy gives you an advantage and will help you make the best decision possible.
Credit Cards
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. In most states, you will still owe money to the IRS and have to take care of the interest of your credit cards. The rule here is that if you can get the tax discharged then you can get the debt discharged. Therefore, you should not pull your credit card out for purchases if it is just going to be discharged during the bankruptcy.
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. Wherever you file, that court has to be made aware of all details regarding your finances, positive and negative. Never hide anything, and make sure you come up with a well devised plan for dealing with bankruptcy.
Keep with what you have decided to do. You might even be able to get back secured property that has been repossessed in the 90 days before filing. You should be able to get your possessions back if they have been taken away from you within 90 days before you filed for bankruptcy. Consult with a lawyer who can advise you on what you need to do to file a petition.
Never pay for a consult with a bankruptcy lawyer, and ask plenty of questions. Almost all lawyers will give a free consultation, so meet with more than one before making a decision on whom to hire. Do not make any final decisions until every question you have has been answered. After your consultation, take your time to make your decision. This will give you extra time to interview several attorneys.
Before proceeding with your bankruptcy, it’s a good idea to start spending ample time with the people you care about most. Bankruptcy proceedings can be extremely harsh. It is long, hard and sometimes leaves people feeling guilty or ashamed. There are a number of people who wish to go into seclusion while undergoing the process of personal bankruptcy. On the other hand, isolation of a self-imposed nature can only worsen your feelings, opening the door to mental depression to join your financial depression. Spend time with your family, talk about your problems and find things that relax you.
Bankruptcy Filing
If your paycheck is larger than your debts, avoid filing for bankruptcy. Remember that the record of your personal bankruptcy filing will be discernible on the report of your credit for as many as 10 years. For this reason, bankruptcy filing should not be taken lightly.
It is possible to obtain new vehicle and home loans while a Chapter 13 case remains active. It is more difficult. You must meet with a trustee to gain approval for a new loan. Document your budget to prove that you’re going to be able to make the payments. The odds are also good that you will be asked exactly why you’re purchasing a new item. Make sure you have a good reason.
Don’t let shame consume you during the bankruptcy process. A lot of people have a negative opinion of bankruptcy, mostly because they misunderstand this procedure. But, such emotions get you nowhere, and they can cause significant mental issues to emerge. These difficult financial times can easily take their toll on anyone. One of the best ways to cope with the situation is to maintain a positive attitude.
Bankruptcy laws are very exact and very important, so ensure that you’re well aware of all current laws before you file a petition. For instance, you are not allowed to move assets from your name to someone else’s for a year before you file. It is also illegal for someone who files for bankruptcy to drastically increase their debts on credit cards immediately before filing.
Do not forget to list each and every debt you have. Failing to disclose all of your financial information can cause your bankruptcy petition to be dismissed, or, at the very least, delayed. It is better to have something on there that you are unsure about, rather than not include it at all and risk a dismissal. This can include side jobs, any vehicles to be counted as assets, and any loans you may currently have.
Nobody enjoys filing for bankruptcy, but at times, you can’t avoid it. You should now have some excellent advice from people who have personally struggled with the bankruptcy process. You can take comfort in the fact that others have been in this situation before you, so take heed from their experiences to help you deal with your own.
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