Bankruptcy can be stressful and it can also bring relief. On one hand, having people go through all of your personal financial information can be formidable. On the other, you get to enjoy the peace that comes when the bill collectors stop calling you. This article is filled with useful tips to help you get through bankruptcy.
You should avoid paying your taxes with credit cards and then immediately file for bankruptcy. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS. In most cases, you can use the adage that “a dischargeable tax is a dischargeable debt.” So it does not help you to put the tax bill on your charge card if you know the debt will be discharged anyway.
It should go without saying, but refrain from lying in your bankruptcy filings. You may be tempted to try to hide income and personal assets from discovery, but doing so often leads to major complications, monetary penalties and the possibility that your case will be thrown out of court.
Make sure you keep reminding your attorney about any important details in your case. You should not take for granted that your lawyer will remember every important detail that you have have told him earlier without a reminder. All information submitted to the court with your signature needs to be double checked.
Unsecured Credit
You may still have trouble receiving any unsecured credit after a bankruptcy. If you find yourself in this situation, you may want to think about getting a secured card or two. That will show lenders that you are committed to rebuilding your credit. When you have done well with secured cards for a while, you should be able to obtain an unsecured credit card.
Keep with what you have decided to do. There may still be way to get repossessed items back after you file for bankruptcy. If you have property repossessed less than ninety days prior to filing your bankruptcy, you may be able to get it back. Consult with a lawyer who can help you along with filing the petition.
You should not have to pay for a consultation with a bankruptcy attorney. Make sure you ask lots of questions. Free consultations are standard practice among bankruptcy lawyers, so interview multiple candidates before making a final decision. Choose to file only if your lawyer has convinced you that this is the best decision. It is not necessary to come to a decision immediately following the meeting. Take your time, and schedule consultations with more than one lawyer.
Make sure that you understand the difference between Chapter 13 bankruptcy and Chapter 7 bankruptcy. In Chapter 7 most of your outstanding accounts will essentially be erased. Your former ties with creditors will cease to exist. Chapter 13 is different, though. This type of bankruptcy entails an agreement to pay off your debts for five years prior to wiping the slate clean. Look into both types of bankruptcy before deciding which one would suit your particular needs.
Prior to choosing a bankruptcy attorney, seek a free consultation with at least three attorneys. Be certain to speak with an attorney, not their paralegal or law clerk, since they cannot give legal advice. Hiring a lawyer could help you become comfortable with the legal things that you will encounter.
Safeguard your most valuable asset–your home. Filing for bankruptcy does not mean you have to lose your home. Check your home’s current value to see if it has gained equity and get your first and second mortgage papers together. You could also check out the homestead exemption. This lets you continue living in your house, depending on whether you meet certain financial requirements.
Bankruptcy Process
Bankruptcy is both a good and a bad thing; it depends on perspective. No matter why or what put you in this situation, the best thing you can do right now is educate yourself on the bankruptcy process. The tips you have just read are a great guide to making the bankruptcy process go smooth. Using these tips in the process of filing can make you feel much better.
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