There are many emotions experienced by those going through personal bankruptcy. These feelings can make it hard to make it through the day, and can leave people feeling stuck. As you can see, filing for bankruptcy does not mean life is over.
Credit Card
Never give up. There may still be way to get repossessed items back after you file for bankruptcy. Any property repossessed within 90 days before filing bankruptcy, may be able to be returned to you. Consult with a lawyer who can advise you on what you need to do to file a petition.
Do not pay your taxes with credit cards that will be canceled when you file for bankruptcy. The fact is that the credit card debt will be ineligible for discharge, and your tax debt may increase. Should the tax be dischargeable, the debt is often dischargeable as well. Therefore, you should not pull your credit card out for purchases if it is just going to be discharged during the bankruptcy.
Keep working to improve your situation. If you’ve had collateral, such as a car, electronics, or jewelry repossessed for non-payment, you might be able to recover the property when you file for bankruptcy. If the property you own has been repossessed under 90 days before the bankruptcy filing, you may still be able to get it back. Get the advice of a qualified attorney who can advise you about ways to accomplish this.
Brush up on the latest bankruptcy regulations before you decide whether or not to file. Make sure to get the most up-to-date information concerning the bankruptcy laws in your state. Your state’s website should have the information that you need.
Be certain to grasp the distinction between Chapter 7 and Chapter 13 bankruptcy cases. If you file for Chapter 7 bankruptcy, all of your debts will be eliminated. The ties with the creditor will be broken. If however you enter Chapter 13, you will go into a five year repayment program prior to your debts dissolving entirely. It’s crucial that you know the differences between all of the various kinds of bankruptcies so that you may choose the best option for your situation.
Prior to choosing a bankruptcy attorney, seek a free consultation with at least three attorneys. Make sure you meet with a licensed attorney rather than a paralegal or assistant, because it is illegal for these people to give legal advice. By shopping lawyers, you will be more likely to find one that makes you comfortable about the process.
Make sure you know how to differentiate between Chapter 13 and Chapter 7. Take time to research this online and see the pros and cons for filing each one. Do not hesitate to have your lawyer explain any details that seem difficult to grasp. This will help ensure you make the right choice when filing.
Be sure you have no other choice but to seek bankruptcy. Sometimes consolidating your existing debts can make them more manageable. There is not easy process associated with personal bankruptcy. It will have a major effect on your credit as time goes on. This is why you must ensure that bankruptcy is the only option left for you.
Know and understand the difference between filing for Chapter 7 bankruptcy versus Chapter 13 bankruptcy. Take time to research this online and see the pros and cons for filing each one. If you’re really not sure how this all works after your research, meet with your lawyer and ask them prior to making a decision.
While going through this process, spend more time with friends and family. Going through bankruptcy is difficult. It can take a long time, take a great emotional toll and cause people to feel embarrassed and defeated. A lot of people hide away until the entire proceedings have been played out. However, this isolation will just make you feel worse, and it could cause you to be depressed. For this reason, if you are undergoing personal bankruptcy proceedings, you must continue to live a normal life, spending time with your friends and relations.
Don’t file bankruptcy if you can afford to pay your debts. It can seem like bankruptcy can be an easy way to avoid paying back your debts, however it leaves a serious mark in your credit report that can last between seven and ten years.
It is in your best interest to be abreast of your rights in petitions for bankruptcy. Some debt collectors like to say that you cannot file for bankruptcy on these debts. Most states allow for the majority of debt to be included on a bankruptcy. If a collector tells you your debt won’t be discharged in your bankruptcy and you know that it will, report the collector to the attorney general’s office in your state.
Think about all the choices available to you when you file for bankruptcy. A lawyer that specializes in bankruptcy law can help advise you of other options, such as repayment plans and reducing interest rates to relieve some of the burden. If you are looking at foreclosure, think about a loan modification program. There are many ways in which a lender can make adjustments that will be helpful to you. Among them are extending the loan, forgiving late charges and reducing the interest rate. After all is said and done, your creditors will still want their money. For this reason, you may wish to investigate debt repayment programs in lieu of bankruptcy programs.
Timing is everything. Timing is important, and that is especially true when filing for bankruptcy. Sometimes, filing as soon as you can is best, while other times, it is wise to get past the worst problems first. Have a chat with a bankruptcy specialist to discover when the ultimate time would be for you to file.
See to it that you are aware of the laws concerning bankruptcy before you consider filing. You should not transfer your assets to anyone in the year preceding your bankruptcy filing. It is also illegal for someone who files for bankruptcy to drastically increase their debts on credit cards immediately before filing.
If you intend to file bankruptcy soon, you may want to discontinue paying all debts. Bankruptcy laws generally prohibit certain creditors from being paid back 90 days before filing and family can be around a year! Know what the laws are prior to making any payments.
Before going through the Chapter 7 filing process, ensure that your co-debtors are abreast of any implications relating to this process. Once you file for Chapter 7 bankruptcy protection, you no longer have legal responsibility for debts that you and any co-signers originally agreed to. However, anyone sharing the loan with you may be forced to pay back the entire amount for the amount in full, which spell financial disaster for them.
Write down every debt you have. You will need this list when you file, so it is important for it to be as compete as possible. Be certain to comb through your financial records to ensure the accuracy of the dollar amounts listed. It can be difficult or even impossible to discharge your debts if you report them inaccurately; be sure that you double check your figures.
Just because you got alternative employment just prior to filing should not make a difference to your plans. Although you have a new job, bankruptcy may still be right for your situation. Filing alters your life dramatically. If you file before gaining more income, you have a better chance of having your debt discharged.
Chapter 7
Know the laws and guidelines about bankruptcy before you formally file. The bankruptcy code contains several provisions that can raise serious obstacles in your case. If you do not know bankruptcy law, your bankruptcy case could be dismissed. Prior to filing any papers, learn about your rights and responsibilities when filing for personal bankruptcy. This will make the process go as smoothly as possible.
If you file for Chapter 7 bankruptcy, then find out you cannot protect your home, it may be possible to change your filing to a Chapter 13. Sometimes it is better to switch the whole Chapter 7 case to the Chapter 13 case. Speak with your attorney for advice on this.
Go through your debts and make sure they’ll be able to clear when you file for bankruptcy so that you don’t have to file for anything you don’t have to. Debt like student loans will stay on your credit report whether or not you file. You may want to look into loan consolidation or credit repair instead.
Now that you’ve read this article, I hope you can see that having personal bankruptcy doesn’t necessarily mean doom for you. It may be hard in the beginning; however, you can get past bankruptcy. With the advice in this article, you can ascertain the best way to escape your debt.
List out who you owe money to. Once you have an idea of who you owe and how much you owe, you can figure out if bankruptcy is really an option for you or not. Review your records to determine the precise amounts that you owe. Remember to take your time here. Rushing through will ensure that some numbers somewhere will be mixed up and then the process will blow up in your face.