Learning more about the process of bankruptcy is, sadly, something that a lot more people have to do today. Most people will put all the blame on the poor economy. Before deciding to seek bankruptcy, you need to know the right information and what to expect; that way, you will make better decisions. Find out more in this article.
Try to make certain you are making the right choice prior to filing your petition. There are other options available, such as credit counseling for consumers. Since your credit history will forever note the bankruptcy, you want to make sure that you have tried everything else before you take an action such as this, in order to minimize the effect it will have with regard to your credit history.
Do not use a credit card to manage your tax issues and then try to file bankruptcy. In most states, this debt won’t be discharged, and you could end up owing the IRS a whole lot more. In most cases, you can use the adage that “a dischargeable tax is a dischargeable debt.” So, in short, do not use your credit cards to pay off debts right before you file for bankruptcy.
Never lie about anything in your bankruptcy petition. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
Don’t hesitate to give your attorney a heads-up about something she has missed. Don’t assume that they will recall every detail that you go over with them without a friendly reminder. Speak up. This is your life, and your future depends on it.
Completely Honest
Think through your decision to file for bankruptcy carefully before going ahead with it. There are other options available, such as credit counseling for consumers. Be sure to consider all options before filing for personal bankruptcy, as this will take a large toll on your credit score for the next ten years.
Be completely honest whenever you file for personal bankruptcy. Hiding any asset or liability is a risk that will bite you in the end. Penalties may include fines, imprisonment or denial of the filing. Be completely honest in your paperwork to avoid a situation that may end in severe punishment.
Research Chapter 13 bankruptcy, and see if it might be right for you. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. Declaring bankruptcy can assist you in consolidating your debt so you can repay it more easily. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. Remember that missing a payment to the plan will result in your case being dismissed.
Remember that filing for Chapter 7 personal bankruptcy will not just affect you. Think about the effect it will have on business associates, friends and family or anyone else who may be a co-signer with you. If you choose Chapter 7, you are no longer responsible for joint debts. Your creditors can then come after your co-debtor for full repayment of the debt.
Don’t try to hide anything if you are filing for bankruptcy, as this will hurt you in the long run. Your bankruptcy lawyer has to know every detail of your finances, whether bad or good. Do not hold anything in secret and create a strategy on how you will deal with the things you are facing.
Prior to filing for bankruptcy, tell yourself that you cannot use the word “shame”. Going through bankruptcy can cause you to lose a lot of self-esteem. Wallowing in these emotions benefits no one, and only serve to harm your own mental health. Staying positive and upbeat is the proper way to deal with bankruptcy.
Before you decide to file a bankruptcy claim, you need to first come to realization that it’s time to start living a more financially responsible life. Avoid incurring new obligations or allowing existing debt to grow in advance of your bankruptcy. In the course of a personal bankruptcy filing, your creditors and the court will examine your credit history right up to the filing date. Every little bit of good financial behavior helps, so you should behave as responsibly as possible prior to filing.
You don’t necessarily have to forfeit all your assets when you file for bankruptcy. You can keep some personal property. Items like clothes, electronics, household furnishings, and jewelry are included in that category. You will need to talk to a bankruptcy attorney to find out whether your local laws and personal situation will allow you to keep your car or home.
Educate yourself about state bankruptcy laws and possible outcomes before filing your petition. Bankruptcy law has changed substantially in recent years, and therefore you must understand how such changes may affect your situation. To learn about these changes, try contacting your state’s legislation office or checking their website.
As you learned from the introduction of the article, bankruptcy is growing a lot these days, especially since the economy is slowly rebuilding. To help you make good decisions regarding bankruptcy, consult with this article and use the knowledge to your advantage.