Before you file for bankruptcy, make sure you have considered all your options. It is a difficult and embarrassing process that no one wants to go through. With the solid advice in the article below, you may be able to make a better choice.
If you are going through a bankruptcy do not fall victim to guilt and pay off debts that you do not need to pay. Don’t touch retirement accounts unless you don’t have a choice. Though you may need to use a bit of your savings, try hard to maintain some of your reserves so that you have some degree of flexibility going forward.
Honesty is of utmost importance during your filing, even though it may be tempting to “pad” your answers a little. You may be tempted to try to hide income and personal assets from discovery, but doing so often leads to major complications, monetary penalties and the possibility that your case will be thrown out of court.
Don’t file for bankruptcy until you know what assets of yours can and can’t be seized. The Bankruptcy Code contains a list of various assets that are excluded from bankruptcy. Be sure that you study this list. Make yourself aware of any assets you have that could be seized. If you don’t read it, you could have nasty surprises pop up later due to your prized possessions being seized.
Do not give up. When you file for personal bankruptcy, you may even be able to retrieve personal property that has been repossessed. For example you may be able to get your car, electronics and even jewelry returned to you. If you have been subject to a repossession during the 90 days before your filing, you stand a good change of getting your property back. Talk to your lawyer to find out how to go about properly filing a petition.
Chapter 7
You need to educate yourself on the differences between Chapter 7 and Chapter 13. Chapter 7 eliminates all debts. Your responsibilities to your creditors will be satisfied. But, with Chapter 13, you will be in repayment plan for about 5 years prior to any debts you have being totally dissolved. It is important that you understand the differences between the different types of bankruptcy, so that you can decide which option is best for you.
Do not forget to enjoy life a little once you get through the initial filing process. The filing process is extremely stressful for a lot of the people who go through it. This kind of stress can take a heavy toll on your personal life, especially if you are not making any efforts to adopt a positive attitude. Your life will most likely improve once you’re over this hump, so relax.
Know the bankruptcy code backwards and forwards before filing. For instance, somebody cannot transfer assets from a filer’s name up to a year after they file. It’s also prohibted to run up debt on credit cards just prior to filing.
If you know that you are about to file for bankruptcy, don’t exploit the information asymmetry and get huge cash advances on your credit cards. Doing so, is a type of fraud that may result in your having to pay back all money advanced from credit card accounts in the months just prior to your bankruptcy.
Organize your debts into an easy-to-read list. This will be included in your bankruptcy filing, so include every entity that you know you owe money to. Write down the exact amount. Don’t just guess. Take your time during this process; don’t rush and make sure all of your figures are correct.
If you feel that bankruptcy filing may be right for you, seek some legal advice first from a specialist lawyer. A qualified lawyer can access your need to file, go to court with you and make the process simple. A lawyer will be able to file and fill out all of the necessary paperwork, as well as answer any questions that you may have.
You may not want to delay your bankruptcy if you secure a higher-paying job just prior to filing. Bankruptcy could still be your best option. The time frame of your filing may be critical. If your case is filed before you begin your new job, any repayment you must do will be calculated without the extra income.
If divorce is in your future, perhaps you should make an effort to resolve the situation before finances become a problem. A lot of people get divorced and immediately have to file for bankruptcy because they didn’t foresee the troubles that were ahead for them financially. It’s a smart decision to reconsider getting a divorce.
Once you have realized you must file for bankruptcy, there is nothing to be gained by putting it off. Delaying the process will not make things better if you have no other choice. When you do wait, it gives you more stress to deal with and can also make your financial position even worse. The adverse consequences can spread and cause problems in other areas. The earlier you file, the better it is for you.
As you can see, you do not have to resort to bankruptcy. The tips from this article can now guide you on the right path to avoid bankruptcy. You can turn your life around and protect your financial position if you make use of wise bankruptcy advice like the suggestions presented above.
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