Whatever leads you to bankruptcy is a sad tale, but that need not mean that’s the only story to tell for the rest of your life. The main purpose of filing is to start a new and improved financial situation. Don’t look at it as the end of the world; read this article to help you determine how your life will be enhanced by bankruptcy.
Do not pay your taxes with credit cards that will be canceled when you file for bankruptcy. Generally speaking, taxes are not a dischargeable debt. The delays caused by this sort of tactic could leave you owing the IRS a great deal in interest and penalties. One thing that you should remember is that if your tax is dischargable, your debt will also be dischargeable. There isn’t any reason to use a credit card to pay the tax bill since the bill can be discharged anyway.
As filing bankruptcy becomes more of a reality, don’t use your entire savings or your retirement funds to pay creditors or attempt to resolve insolvency. You should always keep money saved for worse times. Of course you will have to touch some of your savings to get through all of the hearings, but do not put out any money that you do not have to by law.
Always remind your lawyer of specifics that are important to your case. Don’t assume that they will recall every detail that you go over with them without a friendly reminder. Speak up if something is troubling you, as this is your future we are talking about here.
Prior to putting in the bankruptcy paperwork, determine what assets are protected from seizure. The Bankruptcy Code provides a list of all the different kinds of assets that you can exclude. You can determine exactly which of your possessions are at risk by consulting this list before you file. If you neglect this important step, you might be blindsided when a possession that is important to you is taken to repay creditors.
You must be entirely candid when it comes to declaring assets and obligations in your bankruptcy petition. It is important that you are completely transparent, showing everything financial that needs to be known. Do not hold back anything, and form a sound plan to make peace with your reality.
Don’t pay for an attorney consultation and ask him or her anything you want to know. Most attorneys offer free initial consultations, and you should take advantage of the chance to interview multiple practitioners. Decide which lawyer you like best buy reviewing all of the lawyers’ answers to your questions. Choose the lawyer who addressed your issues the best. Take your time before you decide to file after you meet with your lawyer. That gives you the chance to speak to a number of lawyers.
Chapter 7
You need to educate yourself on the differences between Chapter 7 and Chapter 13. If you file using Chapter 7 bankruptcy, you will get all your debts eliminated. Any ties you have concerning creditors will definitely be dissolved. If you file for Chapter 13 bankruptcy, however, you will enter into a 60 month repayment plan before your debts are completely dissolved. It is worth while to take your time to research both types of bankruptcy to decide which option works best for you, and your financial situation.
It’s a good idea to meet with a number of bankruptcy lawyers before settling upon one. The majority of them offer free initial consultations. It is important to meet with the actual lawyer, because paralegals or assistants cannot give you legal advice. Look for an attorney until you find one you feel comfortable with.
Put forth the effort to grasp the distinctions between Chapter 7 and Chapter 13 bankruptcies. Spend time researching the advantages and disadvantages of filing for each one of these. If you have trouble understanding the wealth of information, talk to your lawyer so he or she can help you make an informed choice.
Remember that your Chapter 7 filing may affect other people in your life as well. When you file under Chapter 7, you will no longer be legally responsible for any debts that were signed by yourself and a co-debtor. Creditors, however, will hold the co-signer liable for the entire balance of the debt.
Do not use the word “shame”, if you go bankrupt. This process is less that glamorous, and it makes most people lose their self-esteem. These feelings can cause you to make rash decisions and cause psychological problems. Try to keep a positive attitude during this tough time and you will be able to better cope with bankruptcy.
When filing for bankruptcy, ensure you have listed all of your financial obligations. Forgetting to add these may cause your petition to be delayed, or even dismissed. Even if you think a sum is insignificant, add it into your documentation. When it comes to the types of things you might not be thinking about adding, just think about any automobiles you have, any money under the table you’re making, etc.
Review bankruptcy rules before you file your petition. You want to understand what is going to happen when you file for your specific case. Some mistakes in your papers can cause your case to be dismissed. Before you go forward, make sure you thoroughly research personal bankruptcy. This will make things easier in the long run.
As you read in the beginning of this article, bankruptcy is not something anyone looks forward to. Nonetheless, filing for personal bankruptcy can be a watershed moment. Actually, if you use the advice and ideas from this article, you will be able to turn bankruptcy into a turning point for your life.
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