Feeling sad and frustrated are a couple of the many emotions people feel when going through bankruptcy. Those who experience it are stuck worrying about how they can pay their debts while being able to live day to day, or so they think. Overcoming this bad financial situation is definitely possible and you will read some helpful tips that will show you how.
Make sure you’ve exhausted all other options prior to declaring bankruptcy. Look into other options, such as consumer credit counseling. Bankruptcy will leave a permanent scar on your credit report and before you take this huge step, you should search through every available option first, to help try and limit the damage to your credit.
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. The rule here is that if you can get the tax discharged then you can get the debt discharged. So, there’s no reason to make use of a credit cards if it will not be discharged in bankruptcy.
When you document your financial records, it is vital that you are 100% truthful in order to have a successful resolution to your bankruptcy process. 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.
Unsecured Credit Card
You might find it difficult to obtain an unsecured credit card or line after emerging from bankruptcy. If that’s the case, it is beneficial to apply for one or even two secured cards. This at least shows you are making an honest attempt at reestablishing your credit worthiness. Then, in time, it may be possible for you to obtain an unsecured credit card.
When it comes to informing your attorney about your case, don’t be fearful. Don’t just assume that the attorney will remember it automatically. All information submitted to the court with your signature needs to be double checked.
Don’t try to hide anything if you are filing for bankruptcy, as this will hurt you in the long run. Wherever you file, that court has to be made aware of all details regarding your finances, positive and negative. Don’t hold back information and create a strategy so you can deal with what’s really happening.
Keep working to improve your situation. Filing for bankruptcy may allow you to get back property, such as an auto, jewelry, or electronics, that you may have had repossessed. If you have property repossessed less than ninety days prior to filing your bankruptcy, you may be able to get it back. Get the advice of a qualified attorney who can advise you about ways to accomplish this.
Spend time with friends and family to keep your stress levels to a minimum through the bankruptcy filing process. Going through a bankruptcy is never easy. The long process can leave people stressed out and racked with guilt and shame over having their financial affairs laid out for everyone to see. Many people don’t feel like socializing during the ordeal. However, becoming a hermit will only increase feelings of self-doubt and could make you depressed. Make it a point to catch yourself if you feel yourself pulling away from others. Tell others that you would like to do some enjoyable things together while you go through bankruptcy process, then do it.
Don’t pay for the consultation with a lawyer who practices bankruptcy law; ask a lot of questions. You can meet with a few lawyers before deciding on one. Most lawyers provide a free initial consultation. Choose to file only if your lawyer has convinced you that this is the best decision. There is no need to offer an immediate hire, so take your time. You have lots of time for consulting with other lawyers.
If you decide to file for bankruptcy, it’s important that you’re educated about your rights. Do not rely on your debtors information about whether or not certain loans can be included in your bankruptcy. There are only three main classes of debts that are non-dischargable: taxes, child support and student loans. If your creditors are telling you any other kind of debts cannot be cancelled, get a written proof and send it to the general office of your state’s attorney to report this illegal behavior.
Be sure you’re acting when the time is right. In bankruptcy filing, timing is quite important. Sometimes it is the best option to file quickly, whereas in other situations filing should be put off until the worst has already passed. Speak with an attorney who specializes in bankruptcy to figure when is the best time to file, according to your situation.
Before you file, make sure you understand the laws as much as possible. For example, it is forbidden for an individual to transfer any assets away from the name of the filer within the twelve months preceding filing. It is also against the law to max out your credit cards before filing for bankruptcy.
Prior to choosing a bankruptcy attorney, seek a free consultation with at least three attorneys. By law, paralegals and assistants can not give legal advice, so be sure that you are meeting with an actual attorney. Be sure to check out a number of lawyers so that you will find one who is just right for you.
Make a list of all your debts before filing. Overlooking any information can result in a delayed or rejected petition. Even if it’s a small sum, make sure it is listed. Some things to be included are: current loans, valuable vehicles and side jobs.
Before you make the final decision to file bankruptcy, consider the other options you have. You may want to consider credit counseling. Many different non-profit entities exist that can assist you without charging you any fees. They can negotiate with each of your creditors to work out payments that you can afford, along with reduced interest rates. All you have to do is give them your payments and they handle paying the creditors.
Take the time to choose a good bankruptcy lawyer. There are a disproportionate number of inexperienced lawyers working in the bankruptcy field. Often times, people choose lawyers that aren’t licensed properly or that don’t have enough experience. Don’t fall victim to this. Information on lawyers and their ratings by clients can be found on the Internet.
Put forth the effort to grasp the distinctions between Chapter 7 and Chapter 13 bankruptcies. Spend time researching the advantages and disadvantages of filing for each one of these. Ask your bankruptcy lawyer to clarify anything you don’t understand before making a final decision about which type of bankruptcy to file.
Filing for bankruptcy isn’t the end of the world. In the beginning, it can be hard, but there is no reason why bankruptcy should defeat you. Keep the advice here in mind so that you can work toward getting back on your feet!