You may feel quite frightened of the IRS if they threaten to repossess the things that are important to you, such as your jewelry or your car. When your debt situation gets serious enough, you may want to consider personal bankruptcy as a way to save yourself. Keep reading for tips that will help you navigate the process successfully.
Be sure to bring anything up repeatedly if you are unsure if your lawyer is focusing on it. Chances are that you may have forgotten to tell them about certain specifics that may be important to your filing. Don’t be afraid to speak up, as it is your case and your future will be affected by its outcome.
Most people end up filing for personal bankruptcy because they owe more than they make. If this sounds like you, start familiarizing yourself with your state laws. Different states use different laws when it comes to bankruptcy. Your home is safe in some states, but in others it’s not. Do you research about legal ins and outs in your state before you begin the bankruptcy process.
Rather than checking online, try to get recommendations from friends or family about a suitable bankruptcy attorney. There are lots of unsavory companies and lawyers out there who prey on people who are in desperate straits. It is up to you to find someone that is trustworthy and can make the process go smoothly.
Determine which assets won’t be seized before filing for bankruptcy. The Bankruptcy Code lists assets considered exempt from being affected by bankruptcy. Be well prepared for bankruptcy by reviewing this list. It will tell you whether are not the things you value most are subject to seizure. It is important to know what types of possessions may be taken away before they actually are seized.
Be as honest as you possibly can when filing for bankruptcy; hiding liabilities or assets will only 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. Lay everything out on the table so that you and your lawyer can devise a plan to get you out of this mess.
Always be honest and forthright when it comes to your bankruptcy petition. 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.
Chapter 7
Remember to understand the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Chapter 7 is the best option to erase your debts for good. The ties with the creditor will be broken. Chapter 13 bankruptcy though will make you work out a payment plan that takes 60 months to work with until the debts go away. It is vital that you know the differences between these types of bankruptcies, in order to find the option that’s best for you.
Protect your house. Bankruptcy doesn’t always mean you’ll lose your home. You might be able to keep your home, for instance, if you have two mortgages or if your home has lost its value. If this is not the case, find out more about Homestead Exemptions you might qualify for if you meet certain financial requirements.
Getting unsecured credit post-bankruptcy will likely be difficult. If this happens to you, think about applying for a couple of secured credit cards. This will demonstrate that you’re seriously trying to restore your credit. After some time passes they may be willing to offer you unsecured credit.
After your initial filing, take time to enjoy yourself a bit and get your mind off of it. It’s easy to be stressed during this time. Stress easily leads to depression, if you are not maintaining control of your emotions. Remember that your situation is going to improve after you file for bankruptcy.
Bankruptcy should be your last resort. Most debt consolidation companies aren’t legitimate and will make your debt worse. Remember to use the tips from this article, and make good financial choices to avoid future debt.