You shouldn’t decide to file for bankruptcy on a whim; the choice can be life changing. If you take a few moments to check out the different tips and tactics listed in the text below, you can begin to realize how to navigate your way through the tough mine field that is bankruptcy. It’s important to prepare yourself by learning ahead of time.
One of the most important things to remember when filing for bankruptcy is to be honest and truthful every step of the way. Not only is hiding income and assets wrong, it is also a crime.
You should check with the personal bankruptcy resources available online to educate yourself thoroughly before you begin the process. The United States Department of Justice, the American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys, all provide valuable information. You need to spend some time gathering valuable information so you can file your bankruptcy with confidence.
Prior to filing for bankruptcy, discover which assets cannot be seized. There are several assets which are exempt from bankruptcy; therefore, consult the Bankruptcy code. You need to read the exemptions for your state, so you know what property you can protect. If you don’t read this list, there is a chance that you might get nasty surprises when they take your things away.
If you are going to be filing for bankruptcy, think about filing Chapter 13. With a consistent income source and less than $250k in debt, try filing for Chapter 13. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. This lasts for three to five years and after this, your unsecured debt will be discharged. Just know that missing one payment could cause your case to be dismissed.
Don’t pay tax requirements with your credit cards with the thought of starting the bankruptcy process afterward, without doing your research first. In many parts of the country, you cannot get this debt discharged, and in the end you will be left owing the IRS a big sum of money. Transferring the debt to another medium (e.g. a credit card) won’t magically make a tax debt discharagable, either. 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 is important to look at your financial situation from all possible angles before you decide to file for bankruptcy. A lawyer that specializes in bankruptcy law can help advise you of other options, such as repayment plans and reducing interest rates to relieve some of the burden. You can apply for a modification of your mortgage if your home is going into foreclosure. There are a lot of ways that your lender can assist you, such as reducing interest rates, eliminating late fees, or extending the term of your loan. When all is said and done, the creditors want their money, so sometimes it’s best to deal with a repayment plan than with a bankruptcy debtor.
Rest assured, when you file for Chapter 13 bankruptcy, you still have the ability to take out mortgage and car loans. It is much harder. You will need to go through various hoops in order to be approved for any new loan type. Create a budget and prove you can afford a new loan payment. You will always have to let them know why this item needs to be purchased.
File when the time is perfectly right. They say timing is everything, and this rings true when filing for bankruptcy. While there are times that it is ideal to file soon, there are other times in which you should wait. The professional advice of a bankruptcy lawyer can help you pin down the best time to file given your current financial state.
Be sure to bring anything up repeatedly if you are unsure if your lawyer is focusing on it. You should not take for granted that your lawyer will remember every important detail that you have have told him earlier without a reminder. This is your future in their hands, so don’t be scared to mention it.
Create a list of all of your finances before filing for bankruptcy. If the court thinks you are attempting to conceal information, your petition could be denied. The most meaningless, innocuous finance or expenditure needs to be listed when you file a claim. This type of income could come from doing odd jobs, extra cars or outstanding loans.
Learn about the personal bankruptcy rules before petitioning. There are many pitfalls when it comes to the code pertaining to personal bankruptcy that can lead to a lot of unwanted issues. If you do not know bankruptcy law, your bankruptcy case could be dismissed. Thoroughly research bankruptcy before you make the decision to file. Doing so will pave the way to an easier process.
It’s not uncommon to learn soon after bankruptcy that you are unable to get an unsecured credit card easily. This being the case, look at secured card options. When you do this, it shows your determination to fix your credit history. After a while, you may be able to get unsecured credit again.
When you have decided that bankruptcy is the right route for you to take, you need to act relatively quickly. Yes, it may be hard to admit the need for help, however, if you try to stall from getting help your situation can only worsen. By talking to a professional, as soon as possible, they can give you some advice on things you can do before it all gets too complicated.
One thing to consider is that filing bankruptcy might be a better alternative to making late payments or missing payments completely. Yes, the bankruptcy will stick around for a whole ten years, but the clean slate you get from filing will help you get back on the right track quickly. The key to a bankruptcy is the fresh start you will get from it.
A lot of people who file for bankruptcy swear they will never use credit of any kind ever again. Although this may seem plausible, this actually isn’t doing them any good. In the future, you will almost certainly need credit to make major purchases, such as a house or a car, and your credit score will be dreadful if you haven’t used credit since your bankruptcy. One credit card is adequate to begin rebuilding your credit rating.
Do some research to find out which assets you could lose by filing for personal bankruptcy. The kinds of assets which may be exempted during bankruptcy proceedings are listed in the Bankruptcy Code. It is vital that you know the things on this list prior to filing for bankruptcy, in order to determine which of your possessions will be taken away. If you fail to do so, things could get ugly.
List any debt you have. This is what you will use when you file for bankruptcy, so make sure every debt you owe is on the list. Double check all of your records so that you do not overlook anything. Take your time during this process; don’t rush and make sure all of your figures are correct.
Some good personal bankruptcy advice is to think twice about getting a divorce when you are in a difficult financial situation. Divorce can bring on a lot of major changes, finances being one of them, and sometimes filing for bankruptcy is the only option. It is always wise to think twice about divorcing.
The article you have just read explains a few different methods you can use when filing for bankruptcy. Several steps must be completed, and completed accurately. When you implement the suggestions in this article, you can feel confident that you have covered all the bases with regard to bankruptcy filing.
Do not attempt to conceal any assets when filing for bankruptcy because you may be penalized when they are discovered. All of your financial information, be it positive or negative, must be disclosed to those in charge of filing your case. They need to know it all. Keeping secrets or trying to outsmart everyone is not a wise move.