Those dealing with personal bankruptcy filing are known to experience feelings of embarrassment, irritation and shame. People sometimes assume incorrectly that they are up against a wall, and there’s no way out. As you will soon learn, there is a way out.
Be certain to gain a thorough understanding of personal bankruptcy by using online resources. The United States Department of Justice, the American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys, all provide valuable information. The more you know, the more you’ll knwo that you’ve made a wise decision and the you’re making sure your bankruptcy goes as smooth as possible.
You should avoid paying your taxes with credit cards and then immediately file for bankruptcy. Generally speaking, taxes are not a dischargeable debt. The delays caused by this sort of tactic could leave you owing the IRS a great deal in interest and penalties. If the tax has the ability to be eliminated, the debt can be too. Just because your credit card could be discharged in bankruptcy does not mean you should use it.
Check the accuracy of all information before it is filed. Inaccurate or incomplete information can lead to your petition being denied. Speak up. This is your life, and your future depends on it.
Protect your house. Filing for bankruptcy does not mean you have to lose your home. For instance, if your home value has dropped recently, or even if you happen to hold a second mortgage, you may not necessarily lose the home. There are also homestead exemptions which, depending on your other finances, may allow to remain in your home.
Before you file for bankruptcy, make sure you absolutely need to. Perhaps just consolidating some of your existing debt, could make them easier to manage. Going through a bankruptcy is a long and stressful process. It will also harm your ability to secure credit in years to come. Because of this, you need to think of bankruptcy as a nuclear option; that is, a last resort.
Don’t hesitate to give your attorney a heads-up about something she has missed. Many times a lawyer may forget a key detail; therefore, it is important to remind your lawyer of any key information. All information submitted to the court with your signature needs to be double checked.
Credit Score
If your earnings are higher than your expenses then filing for bankruptcy is a waste of time and money. You should know that filing for bankruptcy will ruin your credit score for at least ten years and that improving your credit score will be expensive.
Even if you are involved with Chapter 13 bankruptcy, it is still possible to get a mortgage or an automobile loan. However, it will be a longer and more arduous task. You have to meet with your trustee to get approval for the new loan. Create a budget and prove you can afford a new loan payment. You will need to be able to explain why the purchase is necessary.
Don’t pay to for an initial consultation with a bankruptcy attorney, and thoroughly question each candidate. The majority of lawyers offer their first consult at no cost, so ensure you meet with several to find one that you like. Choose to file only if your lawyer has convinced you that this is the best decision. There is no need to feel rushed to decide to file after you talk with your bankruptcy lawyer. This allows you time to speak with numerous lawyers.
When filing for personal bankruptcy you should always be aware of your rights. Bill collectors will lie to you and say you can’t have their bill discharged. There are a few debts that cannot be cleared, such as student loans and child support, but be sure to know the details when dealing with debt collectors. If a bill collector attempts to say their bill cannot be discharged, look it up. If they are wrong, report them.
Now that you’ve reached the end of this article, you should see that bankruptcy doesn’t mean leading an unhappy life. You may have found yourself being fearful when you began thinking of bankruptcy, but once you get through it, you will find it’s not the end of the world. Follow the advice in this article for help in controlling your debt and deciding if bankruptcy is right for you.