It can be challenging to face the prospect of bankruptcy. Your financial options become very limited. Although, this situation should not get you down because there are items you can still get like a home loan or car, continue on and learn how.
You should check with the personal bankruptcy resources available online to educate yourself thoroughly before you begin the process. The US DoJ along with other private and nonprofit organizations all have insightful knowledge. The more you know, the more you’ll knwo that you’ve made a wise decision and the you’re making sure your bankruptcy goes as smooth as possible.
Many people need to file for bankruptcy when they owe more money than they can pay off. If you find yourself needing to file for bankruptcy it is important to familiarize yourself with the state laws. Laws differ from one state to the other. In some states, your home is protected, while in others it is not. Make sure you know the laws where you live before you file.
Don’t think that loading up your credit card with tax debt and then filing for bankruptcy is an answer either. Credit card debt is handled charge by charge during bankruptcy, and in most states, tax debt cannot be discharged through bankruptcy. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. Therefore, you should not pull your credit card out for purchases if it is just going to be discharged during the bankruptcy.
If you are going through a bankruptcy do not fall victim to guilt and pay off debts that you do not need to pay. Retirement accounts should never be accessed unless all other options have been exhausted. If you do have to dig into your savings, make sure that you leave enough to sustain you and your family for a couple of months.
Ensure that you are providing genuine details when filing a bankruptcy petition, because honesty is the best policy when dealing with bankruptcy. 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.
Don’t try to hide anything if you are filing for bankruptcy, as this will hurt you in the long run. Whomever you plan to use should know a lot about the finances that you have, both the good and the bad. Do not hold back anything, and form a sound plan to make peace with your reality.
Be sure to remind your lawyer if it seems that some details of your situation are forgotten. Don’t just assume they already know and that they have these important details committed to memory or written down. Remember that you’re the boss. You’re paying your lawyer, so you should not be afraid to have your say. After all, the quality of your life hangs in the balance.
When looking for a lawyer to handle your bankruptcy claim, the best way to go is off of a personal recommendation instead of simply flipping through the phone book. There are plenty of companies who know how to take advantage of people who seem desperate, and it’s important to be sure your bankruptcy can go smoothly; take your time and choose someone you can trust.
Don’t ever pay a bankruptcy attorney for a consultation, and ask a lot of questions. Most lawyers provide a consultation for free, so consult with many of them before picking which one you want to hire. Make a choice only if you have received good answers to all the questions and concerns you brought to the table. You do not need to make a decision immediately after the consult. You could even go to different lawyers for advice.
Consider filing using chapter 13 bankruptcy. With a consistent income source and less than $250k in debt, try filing for Chapter 13. This allows you to keep possession of your real estate and property and repay your debt through a debt plan. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. Missing a payment under these plans can result in total dismissal by the courts.
With time, things will get better credit-wise for you, despite your having previously filed for bankruptcy. When creditors can look at your credit report and see that you have made an effort, over time, to pay on time, getting credit will become easier again. You will see just how big of a difference saving a little money can make when you go apply for your next home or car loan.