Making the decision to file for bankruptcy isn’t an easy one, but sometimes it can be the only way out of a mountain of debt. Going through this ordeal is easier when equipped with lots of solid advice. Continue to read this article to learn what has helped others who have filed for bankruptcy.
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. It is vital that you disclose all information about your assets and income so there are no delays or penalties, such as a court barring you from filing again later in the future.
It is important to understand clearly the benefits of a Chapter 7 or 13 bankruptcy. Go to a reputable website and research the benefits and detriments of each type of bankruptcy. Learning about bankruptcy is not simple, so call a bankruptcy attorney to make an appointment to ask questions.
Make sure that you really need to file for bankruptcy. You may be able to get away with going through debt consolidation to help make the payments easier to deal with. Bankruptcy is a stressful process. It will also make it tough for you to secure credit after your filing is complete. Because of this, filing for bankruptcy should only be used as a last resort.
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. If you currently have some income and don’t have more than $250k in debt, you can declare bankruptcy. This allows you to keep possession of your real estate and property and repay your debt through a debt plan. The length of the plan is generally up to five years, and when this is over, you will be free of unsecured debt. Remember, though, that if you fail to make even one payment, the case will be thrown out and you’ll be right back where you started.
A great tip to remember if you have filed for Chapter 13 is that you will still be able to receive a loan, so you shouldn’t refrain from trying. But, it could be harder. Your trustee can help you acquire a new loan. Create a budget and prove you can afford a new loan payment. It will also be necessary to show why a new purchase needs to be made.
See to it that you are aware of the laws concerning bankruptcy before you consider filing. Did you know that in some areas, you cannot transfer assets from yourself to another person in the year previous to filing occurring? It is also illegal for someone who files for bankruptcy to drastically increase their debts on credit cards immediately before filing.
When filing for bankruptcy, ensure you have listed all of your financial obligations. Overlooking any information can result in a delayed or rejected petition. Even small amounts of money contribute to your overall financial picture, so do not exclude them. That may include secondary jobs, any cars or trucks you want to be considered assets and any current loans.
Avoid large cash advances from credit cards when considering bankruptcy. You may think these debts will just be washed clean, but you are wrong. Not only is this fraud, but you could end up having to pay back the money, even once you have filed for bankruptcy.
Be careful how you pay off any debts prior to filing for personal bankruptcy. You may find that bankruptcy law prohibits you from paying back some types of creditors for 90 days before you file, and a year for family members. Before making important decisions in regards to your finances, be sure you understand the laws.
Bankruptcy Process
Don’t put off handling the research or procedures for the bankruptcy process if that is the route you’re taking. It can be hard to ask for help but it’s not recommended for you to get further into debt. Speaking with someone knowledgeable as soon as you can helps get you started on the bankruptcy process before your situation becomes any worse.
The first step to making your bankruptcy successful is to turn over a new leaf and decide to manage money better. Do not take on more debt or use more of your current credit. Judges and creditors consider current history, as well as past history when adjudicating personal bankruptcy. You need to show the court that you have changed and are ready to act in a financially responsible manner.
Don’t believe the myth that declaring bankruptcy means you lose everything you own. You can keep personal property. This includes some jewelry, clothing, household furnishing, electronics and more. This will depend on your state’s laws, the type of bankruptcy you file for, and your financial situation, but you may be able to retain large assets like your home and car.
Write down everything that you owe. This will be where you start your bankruptcy filing. Be sure you’re including every debt. Include your exact balance on each account. Take your time during this process; don’t rush and make sure all of your figures are correct.
Nobody wants to file for bankruptcy, but in some cases the situation becomes necessary. Now, equipped with the information from this article, you can handle the process much more completely. Spending some time learning for others who have gone through the same thing reduce some of your stress.
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