People often shudder at the mention of the word bankruptcy. Similarly, mounting debt and the inability to sufficiently support oneself and family is another very real fear. If this troubles you, or if you are dealing with this nightmare now, the following information is required reading.
Try to make certain you are making the right choice prior to filing your petition. There are plenty of other options open to you, like consumer credit counseling. If you file for bankruptcy, a mark is permanently left on your credit. Therefore, before you do this, you should utilize all the other options that you have.
Millions of Americans file for bankruptcy each year because they can not pay their bills. If you’re in this situation, learn about the laws where you live. Most states differ in their laws governing bankruptcy. In a few states, they see to it that your house is protected. This is not the case when it comes to other states. Be sure you educate yourself on local laws prior to filing.
Be sure to remind your lawyer if it seems that some details of your situation are forgotten. Never assume that they can remember all details without reminders. Don’t fear speaking up since it affects your case and future.
Unsecured Credit
It can be difficult to obtain unsecured credit once you have filed for bankruptcy. A great way to rebuild your credit is to apply for a prepaid credit card. This will demonstrate that you’re seriously trying to restore your credit. Unsecured credit may be offered to you quicker than you think after doing so.
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 and American Bankruptcy Institute are two such places to look. The greater your body of knowledge, the better prepared you will be to make the decision of whether or not to file and to make certain that if you do file, the process is a smooth one.
Find out what you exemptions are prior to filing bankruptcy. The Bankruptcy Code contains a list of various assets that are excluded from bankruptcy. Be sure that you study this list. Make yourself aware of any assets you have that could be seized. If you neglect this important step, you might be blindsided when a possession that is important to you is taken to repay creditors.
Familiarize yourself with the bankruptcy code before you file. 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. Keep up with your current state’s laws and regulations to figure out what steps you should take.
Prior to choosing a bankruptcy attorney, seek a free consultation with at least three attorneys. Just be sure that the person you speak with really is the lawyer, rather than a paralegal, since they cannot legally give advice. It will be important to work with a bankruptcy lawyer that you feel comfortable with; a little comparison shopping will help you find the right one.
Do not even think about paying your taxes with credit and petitioning for bankruptcy right after. In some places the debt can not be discharged, and you may still need to pay the IRS afterward. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. 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.
It is important to protect your home when filing bankruptcy. Bankruptcy filings do not necessarily mean that you have to lose your house. It depends what your home value is and if there is a second mortgage, as all this stuff comes into play when determining if you can keep the home. Additionally, some states have homestead exemptions that might let you keep your home, provided you meet certain requirements.
Become knowledgeable in regards to details about chapter seven bankruptcy vs. chapter 13 bankruptcy. Take time to research this online and see the pros and cons for filing each one. Once you have done your own research, be sure to review your findings with your lawyer, who is the expert. This way, you can be sure of making a well informed choice.
It is not unusual for people to be worried about bankruptcy; the process is nerve-wracking. You may have lived in fear of it before, but you no longer have to now, thanks to this article. Use the bankruptcy information in this article to make your financial life yours again.
It is important to remind your lawyer of any details that may be important to your case. Chances are that you may have forgotten to tell them about certain specifics that may be important to your filing. Ultimately, this is your bankruptcy and your financial future, so never hesitate to advocate on your behalf.