You shouldn’t decide to file for bankruptcy on a whim; the choice can be life changing. By reading this article, you will have a better understanding of all that filing for bankruptcy entails. Take the time to educate yourself before you make your choice.
Do not pay your taxes with credit cards that will be canceled when you 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. Bear this in mind; if the tax can be discharged, then the debt can be as well. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.
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. Don’t be afraid to speak up, as it is your case and your future will be affected by its outcome.
One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. You must avoid the temptation to conceal any valuables, money or other assets from the courts. If they find that you have lied, you may be faced with fines, penalties or the inability to file in the future.
It is wise to meet with several lawyers before making a final decision, take advantage of the free consultations to find one that is a good fit for you. Be certain to speak with an attorney, not their paralegal or law clerk, since they cannot give legal advice. By shopping lawyers, you will be more likely to find one that makes you comfortable about the process.
There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. Spend time researching the advantages and disadvantages of filing for each one of these. Go to a specialized lawyer to ask your questions and get some useful advice on what to do.
Keep working to improve your situation. If you’ve had collateral, such as a car, electronics, or jewelry repossessed for non-payment, you might be able to recover the property when you file for bankruptcy. If it has been fewer than 90 days since you filed for bankruptcy, it is possible for you to get repossessed property back. Discuss your options with a good lawyer who can help you with the filing of your bankruptcy petition.
If keeping your vehicle is of great concern, ask your lawyer if you can secure a payment modification. Often, you can negotiate a lower payment through bankruptcy. But, your car has to have been bought at least 910 days before you file. Also, it must come from a high interest loan and you have to have been consistently working.
When filing for personal bankruptcy you should always be aware of your rights. Don’t take a debt collectors word for it simply because they tell you that you can’t have many or all of your debts erased by bankruptcy. Only a small number of debts are not dischargeable, including student loans and child support obligations. If a bill collector attempts to say their bill cannot be discharged, look it up. If they are wrong, report them.
Take a look at all of your financial options before filing for personal bankruptcy. Think about seeing a credit counselor. There are a lot of organizations that are non-profits and can assist you. They can speak with your creditor about getting your payments and interest reduced. Once you pay them, they make the payments to your creditors.
Before you file for personal bankruptcy, be sure that you are cognizant of all current laws. These kinds of laws are constantly changing and it is important that you are aware of these changes, so that you can learn how to properly file for bankruptcy. Your state’s legislative offices or website will have up-to-date information about these changes.
If you are planning to file for bankruptcy in the immediate future, you should refrain from taking out cash advances via your credit cards. This is fraud, and you will be required to pay that money back.
Pay attention to how you satisfy any personal debts before filing for bankruptcy. There are bankruptcy laws which forbid repayment of some creditors within three months before filing. In the case of family members, this period of time may extend to a full year. Read the rules before making financial decisions.
If you believe that bankruptcy proceedings may be the answer to your financial woes, you should make haste to learn about the process. It’s very difficult admitting you need help, but waiting too long can actually make it worse. If you talk to a financial professional, they can assess your situation and give you suggestions on what could solve the problem.
Before declaring bankruptcy, be sure you’ve weighed other options. There are numerous programs out there that may assist you with your debt, like a credit counseling program, a nonprofit group, government assistance, etc. Sometimes you can negotiate a reduced payment, though you must strive to get it all in writing.
As this article has demonstrated, you do not have to go through bankruptcy. Many things have to be done properly. If you use the advice from this article, everything will be properly taken care of when you file for bankruptcy.