The decision to file for personal bankruptcy should not be taken lightly! You need to be as well-informed as possible when you make bankruptcy decisions. Use the tips in this article to guide you in the right direction. Making the decision to file for bankruptcy isn’t a light one. Use the information provided below to take the correct steps.
One of the most important things to remember when filing for bankruptcy is to be honest and truthful every step of the way. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
You should check with the personal bankruptcy resources available online to educate yourself thoroughly before you begin the process. The United States DOJ, along with a number of other bankruptcy institutes and attorneys specializing in bankruptcy can give you invaluable information. Knowing is half the battle, after all, and these websites are the first step in learning what you need to know to make your bankruptcy smooth and stress-free.
After a bankruptcy, you may still see problems getting any kind of unsecured credit. In this event, you should attempt to apply for a secured card or two. If you pay what you owe back promptly at all times, you can show that you are taking steps to be responsible about your payments and credit rating. In time, you might be granted unsecured credit again.
Don’t try to hide anything if you are filing for bankruptcy, as this will hurt you in the long run. Regardless of the agency you file with, ensure that you tell them all they should know about your current financial situation, regardless of how good or bad it is. Being honest is both the right thing to do and, moreover, it is required by law.
Bankruptcy is tricky and hiring a good lawyer will be a must. Bankruptcy can be highly confusing and stressful, and you need an unbiased partner who can help simplify the process. Your lawyer will make sure that the filings are correct and help you navigate the complex process of filing for bankruptcy.
Don’t think that loading up your credit card with tax debt and then filing for bankruptcy is an answer either. Most states do not look at this debt as chargeable, and you could end up owing money to the IRS. In most cases, you can use the adage that “a dischargeable tax is a dischargeable debt.” So it does not help you to put the tax bill on your charge card if you know the debt will be discharged anyway.
Stay up to date with any new bankruptcy filing laws. It can be tough to keep up with them on your own, and because they change often, a bankruptcy attorney can help you keep track for the sake of your filing process. Your state’s website should have the information that you need.
Be sure your home is well protected. You do not have to lose your home in the process of a bankruptcy. 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. You should also examine the possibility of taking a homestead exemption. This could apply if your income falls below the financial threshold.
There are quite a few ways to file for bankruptcy. Just do not be overwhelmed with what you learn. Think carefully about your situation and the tips at hand. That way, you’ll make the best decisions.
If you can, get a word-of-mouth referral for a lawyer. Bankruptcy attracts a lot of fly-by-night firms that take advantage of desperate people, and a word-of-mouth recommendation makes it more likely that your bankruptcy will go smoothly.