Losing some of your valuable possessions, such as jewelry or vehicles, can make you very fearful. Consider your finances and put an end to creditor calls, by petitioning for personal bankruptcy. In the following paragraphs, you’ll find advice that will guide you through the bankruptcy process.
You should avoid paying your taxes with credit cards and then immediately file for bankruptcy. The fact is that the credit card debt will be ineligible for discharge, and your tax debt may increase. The rule here is that if you can get the tax discharged then you can get the debt discharged. Because of this, transferring the debt to your credit card is pointless.
When you realize that you probably will file for bankruptcy, do not pay your creditors or try to avoid bankruptcy by spending all of your regular or retirement savings. Retirement accounts should never be touched if it can be helped. You may have withdraw from your savings every now and then, but try to leave yourself some financial security for the future.
Credit History
Don’t look at bankruptcy as a first step. Look at all the other options you may have first. Other available options include consumer credit counseling. Bankruptcy leaves a permanent mark on your credit history, so before you take such a large step, you want to exhaust all other options so that the future effects on your credit history are as minimal as possible.
If you are faced with the choice of filing for bankruptcy or using your emergency fund or retirement accounts to pay creditors, opt to file for bankruptcy. No matter what you do, do not touch your personal savings unless there is no other option. You may have withdraw from your savings every now and then, but try to leave yourself some financial security for the future.
Before filling for bankruptcy, determine which assets will be exempted from seizure. Check the bankruptcy laws in your state to find out if certain items are excluded from your bankruptcy filing. It is important to be aware of this list so you will know what assets are saved. If you don’t read this list, there is a chance that you might get nasty surprises when they take your things away.
It’s not uncommon to learn soon after bankruptcy that you are unable to get an unsecured credit card easily. If you find that to be the situation, consider requesting secured cards. This will demonstrate that you’re seriously trying to restore your credit. Once you’ve built up a history of on-time payments, you may start getting unsecured credit again.
If a personal recommendation comes your way, this should be a lawyer you focus on. There are lawyers out there who will take advantage of your financial state and not deal honestly with you. Make sure your filing process goes as well as possible by finding a trustworthy lawyer.
Before you file for bankruptcy, find out which of your assets will be exempt from seizure. Bankruptcy exemptions are properties may not be seized during bankruptcy. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. Failure to do this could cause some ugly surprises down the road when you discover that your valuables must be seized.
Never give up. Filing for personal bankruptcy may possibly enable you to reclaim your personal property that have been repossessed, like your car, electronics and jewelry items. If your property has been repossessed less than 90 days prior to your bankruptcy filing, there is a good chance you can get it back. A lawyer will be able to assist you with filing the paperwork to get the items back.
Don’t hide assets or liabilities when filing for bankruptcy. All of your financial information, be it positive or negative, must be disclosed to those in charge of filing your case. They need to know it all. Be completely honest in your paperwork to avoid a situation that may end in severe punishment.
You should never give up. When you file for bankruptcy you may be allowed to recover property like your car, electronics or jewelry that might have been repossessed. If the items were repossessed less than three months prior to your filing date, you may be able to recover them. Speak to a lawyer who will be able to help you file the necessary paperwork.
Before making your decision to file for bankruptcy, double-check to see if other, less drastic options could make sense. For example, there are credit counseling services that can help you to deal with smaller amounts of debt. It is sometimes possible to negotiate smaller payment by yourself. If you do this, make sure you save a written record of debt modifications that are negotiated.
Be sure to enlist the help of a lawyer if you’re going to be filing for bankruptcy. Personal bankruptcy is quite complex, and it is entirely possible that you will not be able to familiarize yourself with all the laws and processes. Your lawyer will make sure that the filings are correct and help you navigate the complex process of filing for bankruptcy.
Chapter 13
Do some research to find out more about Chapter 13 and Chapter 7. In Chapter 7 bankruptcy, your debts are all eliminated. All happenings with creditors will disappear. Filing Chapter 13 differs by requiring you to agree to a 60 month plan to repay your debts before they are totally eliminated. 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.
Facing bankruptcy is a negative situation that can bring on stress. To avoid getting too stressed, make sure you hire a reputable bankruptcy attorney. Do not solely use cost to determine whom to hire. The cheapest attorney may not be the best, but the most expensive may not be the best either. Ask for referrals from folks who have filed and check reputations with the BBB. If you really want to check up on them check out how well they do at court hearings.
You need to educate yourself on the differences between Chapter 7 and Chapter 13. Every one of your debts will be gone if you decide to go with Chapter 7. This includes creditors and your relationship with them will become no longer existent. Chapter 13 bankruptcy allows for a five year repayment plan to eliminate all your debts. Both options have advantages and drawbacks, so do your research before deciding.
When you are filing for bankruptcy, make sure you list all of the financial information you may have. Failing to disclose all of your financial information can cause your bankruptcy petition to be dismissed, or, at the very least, delayed. You might think something is insignificant, but you should add it anyway. This may include secondary employments, vehicles you own and loans you still owe money on.
Carefully pick the lawyer you will use when filing for bankruptcy. A lot of rookie lawyers get their start in bankruptcy law. Often times, people choose lawyers that aren’t licensed properly or that don’t have enough experience. Don’t fall victim to this. A basic Internet search can turn up client ratings and relevant background information.
Bankruptcy is an option, but you should look at other options before filing. Be wary of debt consolidation services, some of these services are scams and are only after your money. Remember to use the tips from this article, and make good financial choices to avoid future debt.
Take advantage of the opportunity to consult with a number of bankruptcy lawyers who offer the first visit at no charge. Ensure that your meeting is actually with the attorney, not with a paralegal or an assistant. People in these positions are unable to offer legal advice. Look for a lawyer who you can relate to.