Frustration, sadness, anguish and anger are feelings that are felt by anyone who experiences personal bankruptcy. Many people are fixated on the question as to how they will repay their debts so much that they are unable to live their daily lives. There is always a way for someone work through personal bankruptcy, as will be shown through the following tips.
The primary catalyst for filing personal bankruptcy is having a large amount of debt that can’t be readily repaid. If this is happening to you, then learn about the laws where you live. Each state has their own bankruptcy laws. In some areas, your residence may be completely exempt, but in others, it will not be. Become acquainted with local bankruptcy laws before filing.
Do not attempt to pay your taxes with your credit cards and subsequently file for bankruptcy. In many parts of the country, you cannot get this debt discharged, and in the end you will be left owing the IRS a big sum of money. If the tax can be discharged, so can 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.
Credit History
Before you proceed with your personal bankruptcy case, review your decisions to be certain that the choice you are making is the right. You have better options. For example, you could try credit counseling. Bankruptcy is a serious negative on your credit history so make sure you have no other options before you file. It is important to keep your credit history as positive as possible.
Ensure that you are providing genuine details when filing a bankruptcy petition, because honesty is the best policy when dealing with bankruptcy. Resisting the temptation to hide income or valuable assets from the bankruptcy trustee is a smart way to avoid potential complications, penalties, and the possibility of being barred from re-filing in the future.
Don’t fear reminding your attorney of any specific details of your case. Just because you have told him something of importance that he will remember it. Do not hesitate to speak up; this is your hearing and your future is on the line.
If possible obtain a personal recommendation for a bankruptcy lawyer instead of randomly choosing one. There are a number of companies who may take advantage of your situation, so always work with someone that is trustworthy.
Don’t file for bankruptcy until your represented by an attorney. You may not know everything you need to know in order to have a successful outcome of your case. A personal bankruptcy lawyer will be able to help you and ensure you are doing things the proper way.
Chapter 13
Before filing for bankruptcy, determine whether Chapter 13 or Chapter 7 is appropriate for your financial situation. In Chapter 7 most of your outstanding accounts will essentially be erased. All the things that tie you to creditors will go away. Filing Chapter 13 differs by requiring you to agree to a 60 month plan to repay your debts before they are totally eliminated. Look into both types of bankruptcy before deciding which one would suit your particular needs.
If you are earning enough to cover your bills, don’t file for bankruptcy. Bankruptcy may appear like the easier way to avoid paying your old bills, but it is a huge mark on your credit score and remains there for up to 10 years.
Before you decide to file for Chapter 7 bankruptcy, you should consider what your bankruptcy might have on others, as your family and friends may be affected. You can relieve yourself of any liability for debts that you may share with someone else through a Chapter 7 filing. But, creditors will ask for the money from your co-debtor.
Make certain that you are fully aware of each and every bankruptcy law prior to even considering filing. For instance, you need to know not to shift assets into someone else’s name in the year leading up to your filing. Moreover, a filer is prohibited from spending or incurring extra debt prior to their bankruptcy filing.
Bankruptcy Laws
Research your state’s bankruptcy laws before filing your petition. There are many traps in the bankruptcy laws that could trip up your case. If you make an egregious mistake, the judge might even dismiss your case. Before you go forward, make sure you thoroughly research personal bankruptcy. This will make things easier in the long run.
Take a look at all of your financial options before filing for personal bankruptcy. Consider credit counseling. You can easily find non-profits that can assist you in your debt struggles. They can negotiate with each of your creditors to work out payments that you can afford, along with reduced interest rates. Once you pay them, they make the payments to your creditors.
It may be counterintuitive, but in some cases, pulling the trigger and filing for bankruptcy may have better credit consequences than continuing a pattern of credit delinquencies. While bankruptcy will show up in you credit file for the next 10 years, you can begin the process of making your credit situation better right away. A major benefit of the bankruptcy process is the ability to essentially start over.
Before you decide to file a bankruptcy claim, you need to first come to realization that it’s time to start living a more financially responsible life. Don’t boost current debt or get new debt before bankruptcy. When looking at your situation, a judge will take both your past and current credit history into consideration. Try demonstrating that your current behavior and financial habits have positively changed.
Now you can probably see that filing for personal bankruptcy protection does not mean your finances are doomed forever. It may be difficult at first, but you can overcome bankruptcy. Remember these tips so you can dig your way out of debt.
This is a limited-time offer. We are not able to guarantee availability if you wait!
