Filing for bankruptcy is not a simple process. There are different kinds of bankruptcy you can file, and the kind you select depends on your individual financial picture and what types of debt you have. Therefore, it is essential that you learn about bankruptcy prior to petitioning the courts for bankruptcy protection. The below advice can assist you in beginning.
Think twice if you have struck upon the idea of paying off your taxes by credit card and subsequently filing for personal bankruptcy. Most states do not look at this debt as chargeable, and you could end up owing 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, there is no reason to use your credit card if it will be discharged in the bankruptcy.
Be warned that after your bankruptcy, you may stand out as a leper to credit institutions. You may be unable to get a simple credit card. If so, apply for a secured credit card. By doing this, you will be letting people know that you want to fix your credit score. If you do well with a secured card and make strides to repair your credit, you will ultimately be able to receive an unsecured card.
When you feel certain that you must file for personal bankruptcy, refrain from squandering your life savings to pay off unsecured debt. Leave your retirement accounts untouched unless there is absolutely no other alternative. You may have withdraw from your savings every now and then, but try to leave yourself some financial security for the future.
Don’t be afraid to remind your lawyer about important aspects of your case. Don’t assume that he’ll remember something from a month ago; tell him again. 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.
Instead of getting your lawyer from the yellow pages or on the Internet, try your hardest to find one with a personal recommendation. There are various companies that prey on the financially desperate, so you need to find someone you can trust to ensure the process goes smoothly,
Don’t try to hide anything if you are filing for bankruptcy, as this will hurt you in the long run. The lawyer representing you when you file needs to have full knowledge of your financial situation. Being honest is both the right thing to do and, moreover, it is required by law.
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. Never hide anything, and make sure you come up with a well devised plan for dealing with bankruptcy.
Do not forget to make quality time for friends and family members. Bankruptcy can really wear down your emotional reserves. It is extremely stressful and long, and it can leave you feeling ashamed of yourself. It is not uncommon for a person to feel the need to pull away from loved ones during the process. However, this isolation will just make you feel worse, and it could cause you to be depressed. This is the reason that you need to take the time out to spend time with everyone you love despite what your financial situation is.
It is possible to get an auto loan or mortgage during the repayment period for Chapter 13 bankruptcy. However, the process of approval is a bit more stringent. Normally, the trustee assigned to your bankruptcy must approve any new loan. You will need to come up with a budget and show that this new loan payment schedule is doable. The odds are also good that you will be asked exactly why you’re purchasing a new item. Make sure you have a good reason.
Most bankruptcy lawyers give free consultation, so try to meet with these types of lawyers before deciding on hiring one. Be certain you talk to the lawyer, himself, instead of a paralegal or assistant; those people aren’t allowed to give legal advice. Considering several different lawyers can help find someone to trust.
As you can see, you should give bankruptcy a lot of thought before deciding whether or not you should file. Ultimately, if bankruptcy seems like the best choice for you and your finances, you may want to seek out a bankruptcy attorney. They’ll be able to guide you through the stages of bankruptcy, ensuring your fresh start is a great one.