Unfortunately, bankruptcy today is something that is becoming very common. Most people cite the economy for having to file for bankruptcy. Before filing for personal bankruptcy, take some time to understand the entire process and applicable laws so that you can make wise decisions. If you read this article, you will learn what you need to know.
Never shirk on the truth in your petition for bankruptcy. Resisting the temptation to hide income or valuable assets from the bankruptcy trustee is a smart way to avoid potential complications, penalties, and the possibility of being barred from re-filing in the future.
Do not attempt to pay your taxes with your credit cards and subsequently file for bankruptcy. In most states, you will still owe money to the IRS and have to take care of the interest of your credit cards. Should the tax be dischargeable, the debt is often dischargeable as well. Therefore, you have no reason for use of a credit card, if the amount is to be discharged in due process of the bankruptcy.
Don’t be afraid to remind your lawyer about important aspects of your case. Inaccurate or incomplete information can lead to your petition being denied. Be as open as you can be to make sure your bankruptcy goes as well as possible.
Unsecured Credit
You might find it difficult to obtain an unsecured credit card or line after emerging from 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. If you pay your secured card off on time, you’ll eventually find that companies will start offering you unsecured credit.
Don’t feel bad if you need to remind your attorney about any specifics of your case. Don’t assume that he’ll remember something from a month ago; tell him again. Speak up. This is your life, and your future depends on it.
Research what assets are exempt from seizure before you decide to declare bankruptcy. To find an itemized list detailing assets exempt from bankruptcy, find the Bankruptcy Code. You need to compare this list to the assets you own so that you are not surprised when certain assets are seized. If you don’t heed that advice, you might find yourself getting surprised when your favorite things are repossessed.
If you are considering filing for bankruptcy you definitely need to hire an attorney. Bankruptcy can be highly confusing and stressful, and you need an unbiased partner who can help simplify the process. Your lawyer will make sure that the filings are correct and help you navigate the complex process of filing for bankruptcy.
A lot of bankruptcy attorneys will let you have a consultation, so try several out. It is important to meet with the actual attorney, not the attorney’s assistant or paralegal; those people are not permitted to give legal advice Look for an attorney until you find one you feel comfortable with.
Be honest when filing for bankruptcy, because hiding liabilities or assets can only cause trouble to you. When you file make sure whoever is handling the process is fully aware of each and every financial detail. Do not hold anything in secret and create a strategy on how you will deal with the things you are facing.
Safeguard your home. Filing bankruptcy does not necessarily mean that you will lose your house. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. You are still going to want to check into homestead exemption either way just in case.
As noted in the beginning of the article, bankruptcy is a hot topic nowadays, mostly because of the state of the economy. Apply what you’ve learned here today and make wise decisions about bankruptcy going forward.