Bankruptcy is a decision that should be considered carefully before undertaking. Use this article’s advice to learn what you are in for and how to make proper choices. It’s important that you gather as much info as possible before filing.
It should go without saying, but refrain from lying in your bankruptcy filings. Remember that if you hide your valuable assets or income from your bankruptcy trustee, you may risk a number of penalties and complications. Among these is the possibility that you could be blocked from ever filing again.
Be sure to bring anything up repeatedly if you are unsure if your lawyer is focusing on it. You cannot expect your lawyer to remember every important detail without some reminder from you. Speak up, because it is your future on the line.
If you know people who have filed for bankruptcy, ask them who they would recommend rather than relying on Internet reviews or worse, just randomly picking someone out of the phone book. Don’t allow yourself to be taken advantage of by predatory lawyers just because you are filing for bankruptcy. It is important to find someone trustworthy.
Be sure to weigh all of your options before deciding to file for personal bankruptcy. For example, consumer credit counseling services can often help you figure out a workable repayment plan with creditors. Some creditors will work with you to help you pay off your debt with lower interest rates, lower late fees, or an extended loan period.
Always protect your house. Filing for bankruptcy does not guarantee that you will lose your house. 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 can also investigate your state’s homestead exemption, an option that might enable you to keep your home if certain financial requirements are met.
Avoid filing for bankruptcy if you make more money than your monthly bills. Although you may see bankruptcy as a free pass to eliminate your debt, if you can slowly whittle away at your debt with your income, it will be much better than killing your credit score with a bankruptcy filing.
Chapter 7
Remember that your Chapter 7 filing may affect other people in your life as well. When filing Chapter 7, you are not longer liable for the debts that you and a co-debtor signed for. However, the creditors could come after your co-signer and demand full payment for the debt.
Make sure you act at an appropriate time. Proper timing is important, especially when it comes to personal bankruptcy. Sometimes you should file immediately; however, there are times when it is better to delay until the worst has passed. Speak with a lawyer specializing in bankruptcy in order to learn when you should file your petition.
Make sure you know the bankruptcy laws before filing your petition. Your case may be rife with issues due to pitfalls inherent in codes regarding personal bankruptcy. Mistakes can also have your case dismissed. Make sure you are fully aware about personal bankruptcy before you make any final decisions. This will make the bankruptcy process much simpler.
As you are heading towards a bankruptcy filing, don’t be tempted to run up cash advances on your credit cards in the belief they will be erased in the legal proceedings. This fraudulent practice is a demonstration of bad faith. Debts you incur this way will likely not be discharged in a bankruptcy, and you will still have to repay them.
Be cautious if you are planning to pay off any of your debts before you file for bankruptcy. When you’re planning on filing bankruptcy, your finances have to be in a state of limbo, for lack of a better term. Paying off creditors, transferring assets, and acting in any way other than financially strapped may result in a failed claim. So, before you ultimately decide to file a claim, be sure that you understand the rules in place.
Don’t take too long when trying to decide whether you want to file bankruptcy. It might seem a little scary, but if you wait forever to act, you’ll just be waiting that much longer once you do ultimately file. When you speak with a professional quickly, you will get valuable advice that will help to prevent your situation from spinning out of control.
Credit Cards
Many people who have filed for bankruptcy, resolve to never use credit or credit cards again. This is not wise, since credit cards can help to rebuild credit. If you aren’t using any credit, then it will be very difficult to get your credit score high enough to be able to purchase things like a car or home in the future. Keep it simple with one card and take a slow approach to rebuilding.
Bankruptcy is not a something that simply happens, as this article has proven to you. When you file for bankruptcy, things must be done the right way. The tips you have read here were designed to give you an advantage when filing. By using them, you can sure that you’re doing everything by the book and that you won’t be caught by surprise.
This is a limited-time offer. We are not able to guarantee availability if you wait!
