Bankruptcy can be stressful and it can also bring relief. It is not fun when you have to bear all your finances out in the open and everyone picks apart your financial situation. On the other side, you will no longer receive calls from bill collectors and you can work on your finances. Here are some simple tips anyone can use to help make the process of bankruptcy go smooth.
Knowledge is power when you’re considering bankrupcy; there are many websites available to help you. The United States DOJ, the NACBA, and the ABI all have useful information. Knowing as much as possible about bankruptcy gives you an advantage and will help you make the best decision possible.
Always be honest and forthright when it comes to your bankruptcy petition. 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.
You should avoid paying your taxes with credit cards and then immediately file for bankruptcy. You will find few states that discharge this kind of debt. You may also wind up owing a lot of money to the IRS. Transferring the debt to another medium (e.g. a credit card) won’t magically make a tax debt discharagable, either. So as you can see, in this situation there is no need to use the card when the debt will be discharged when you file for bankruptcy.
Don’t avoid telling your lawyer specific details with your case. Don’t assume that they’ll remember something important later without having a reminder. Be as open as you can be to make sure your bankruptcy goes as well as possible.
Do some research to find out which assets you could lose by filing for personal bankruptcy. There are some assets that cannot be seized through bankruptcy, and the law lists those assets. 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. This will ensure that you do not have any surprises once you have filed bankruptcy.
After a bankruptcy, you may still see problems getting any kind of unsecured credit. Secured cards can be a great way to get started if this happens to you. This will be a demonstration of the seriousness with which you view rebuilding your credit rating. In time, you might be granted unsecured credit again.
Stay positive. Filing a bankruptcy petition might facilitate the return of your property, including cards, electronics or other items that may have been repossessed. If the repossession occurred within 90 days from your filing date, it is possible that some of your property can be returned to you. Talk to your lawyer to find out how to go about properly filing a petition.
You should not have to pay for an initial legal consultation, and such meetings are great opportunities to ask lots of questions. Free consultations are standard practice among bankruptcy lawyers, so interview multiple candidates before making a final decision. Only choose a lawyer if you feel like your questions were answered. You can think about your decision before making a commitment. Be sure to talk with a number of lawyers, and compare the information you receive.
Before filing for bankruptcy, hire a qualified attorney. Personal bankruptcy is quite complex, and it is entirely possible that you will not be able to familiarize yourself with all the laws and processes. A bankruptcy attorney can advise you on how proceed properly.
Prior to filing for bankruptcy, discover which assets cannot be seized. The kinds of assets which may be exempted during bankruptcy proceedings are listed in the Bankruptcy Code. It is vital that you completely understand which assets are protected and which assets can be seized prior to filing bankruptcy. If you don’t read it, you could have nasty surprises pop up later due to your prized possessions being seized.
Chapter 7
Know the differences between Chapter 7 and Chapter 13 bankruptcy. If you file using Chapter 7 bankruptcy, you will get all your debts eliminated. Your former ties with creditors will cease to exist. With a chapter 13 bankruptcy, a 60 month period of time will be established in which you will repay the as much of your debt as possible. Following the 60 month period of time, the remainder of your debt will be excused. Look into both types of bankruptcy before deciding which one would suit your particular needs.
There are positives and negatives when you file bankruptcy. Doing some research is the best way to choose the most adapted solution. The advice in this article will help you to deal with bankruptcy successfully. Using these tips in the process of filing can make you feel much better.
Be completely honest whenever you file for personal bankruptcy. Hiding any asset or liability is a risk that will bite you in the end. When you file make sure whoever is handling the process is fully aware of each and every financial detail. Bankruptcy can be a chance to simplify your finances, but any schemes you employ to conceal the truth can ruin that chance for you.