No one wants to need to go through the process of filing for bankruptcy. Life can change in an instant, which can cause bankruptcy to be your only choice. Therefore, knowing how you can deal with this is vital. If you’re in this boat, read on for some helpful advice.
Never lie about anything in your bankruptcy petition. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
After a bankruptcy, you may not be able to receive any credit cards. Secured cards can be a great way to get started if this happens to you. This demonstrates to creditors that you are making a good faith effort to repair your credit. If you pay your secured card off on time, you’ll eventually find that companies will start offering you unsecured credit.
No good will come of trying to conceal your assets or your liabilities in the bankruptcy process; you want to be scrupulously honest when you declare bankruptcy. Penalties may include fines, imprisonment or denial of the filing. Telling the truth will allow you reach a solution that is feasible, given your current situation.
Most bankruptcy lawyers give free consultation, so try to meet with these types of lawyers before deciding on hiring one. Be certain that the person you meet with is really a lawyer. Avoid meeting with paralegals or legal assistants because they cannot give you legal advice. Searching for the best lawyer will help you located the comfort you need during this time.
There are circumstances where you are able to keep your car during a bankruptcy so be sure to ask your lawyer about possibly reducing the payments. Chapter seven bankruptcy often provides for the lowering of payments. It is necessary for you to have bought your car prior to the 910 days preceding your filing, your loan must carry a high rate of interest and you must be employed in order to get such a modification, however.
Act at the right time. The timing of your filing could be important to its success. In some situations it is best to file as soon as possible, but in other situations it is best to wait until after you’ve gotten through the worst of it. Speak with a bankruptcy lawyer to see when is the best time for you to file bankruptcy.
See to it that you are aware of the laws concerning bankruptcy before you consider filing. For example, it is against the law to transfer any assets from the filer to another for a year before filing. It’s also prohibted to run up debt on credit cards just prior to filing.
Create a list of all of your finances before filing for bankruptcy. Forgetting anything can cause a delay, or even a dismissal. Even small amounts of money contribute to your overall financial picture, so do not exclude them. This might take the form of odd jobs, extra cars and outstanding personal loans.
Make a quick decision to be more responsible fiscally before filing. Avoid taking on more debt right before you file for bankruptcy. Creditors and judges look at your current and past financial history when they make a decision about your personal bankruptcy. Your current spending behavior should show that you are making a real effort to modify your financial habits.
Even if you start a new job prior to declaring bankruptcy, do not change your plans! Bankruptcy could still be your best option. The timing of your bankruptcy is important. If you file your bankruptcy before you receive new income, your ability to repay will be evaluated as if you did not have a job.
One common contributing factor for bankruptcy is the financial consequences of filing for divorce, so make sure to consider your plans carefully. A lot of individuals get a divorce and file for bankruptcy immediately because they did not plan for the troubles that they will be experiencing financially. Rethinking a plan to get divorced is always a good choice.
Chapter 13
If after filing for Chapter 7 you aren’t qualified for Homestead Exemption, there is a possibility you can file Chapter 13. In some cases, it may be best to convert your entire Chapter 7 case into a Chapter 13 case, so you should talk to your attorney about your next step.
Speaking with others who have gone through bankruptcy can help you feel better about the process. Going through bankruptcy is extremely stressful. This can cause you to feel isolated from other people. The Internet gives you a place to talk about your hardships and seek advice from those who’ve previously filed for bankruptcy.
If you have decided that your only option is filing for personal bankruptcy, you’ll want to know exactly the right steps to take to proceed . When it comes to filing for bankruptcy, knowledge really is power. Now that you have read the advice shared here with you, you can move forward on the right financial path for you.
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