Sadly, bankruptcy is an increasingly widespread phenomenon of late. You can thank the dismal economy for that. Before deciding to seek bankruptcy, you need to know the right information and what to expect; that way, you will make better decisions. If you read this article, you will learn what you need to know.
Do not try to get clever by paying your taxes via credit card before you declare bankruptcy in an effort to dodge your tax burden. In many areas of the country, this debt will not be dischargeable, and you could be left owing a significant amount to the IRS. Should the tax be dischargeable, the debt is often dischargeable as well. Because of this, transferring the debt to your credit card is pointless.
When it appears likely that you will file a petition, do not start spending your last remaining funds on debt repayment. Retirement funds should be avoided at all costs. You may need to withdraw some funds from your savings account, but don’t take everything that is there as you will be bereft of any financial backup if you do.
When you document your financial records, it is vital that you are 100% truthful in order to have a successful resolution to your bankruptcy process. As long as you are not hiding income or assets from the courts, you can ensure that there are no difficulties with your petition. This will save you from having your petition dismissed and your debts dropped from re-filing.
Look for a bankruptcy lawyer that comes from a personal recommendation instead of someone random on the Internet or in the yellow pages. You want your bankruptcy to go smoothly, and the Internet is rife with fly-by-night companies whose only goal is to prey upon the financially desperate.
Free Consultation
You should never pay for your first consultation with a bankruptcy attorney. Make the most of this free consultation by asking lots of questions. Most attorneys offer a free consultation which you should take advantage of. Meet with a few before finalizing your plans. Make a choice only if you have received good answers to all the questions and concerns you brought to the table. It is not necessary to make a final decision right away. Consulting with several attorneys will also help you find someone you trust.
Seek a less serious option prior to filing for bankruptcy. For example, consumer credit counseling services can often help you figure out a workable repayment plan with creditors. Also, you could try to get your payments lowered on your own. If you decide to do this, get a copy of anything you agree to.
Be sure you know how Chapter 7 and Chapter 13 differ. Chapter 7, for example, will wipe away every one of your outstanding debts. The ties with the creditor will be broken. Bankruptcy under the rules of Chapter 13, on the other hand, require you to work out a payment arrangement to pay back the agreed upon amounts. You need to be aware of the pros and cons of each type of bankruptcy so you can correctly select the best choice for your situation.
There are circumstances where you are able to keep your car during a bankruptcy so be sure to ask your lawyer about possibly reducing the payments. Most of the time Chapter 7 bankruptcy will allow your payments to be lowered. But, your car has to have been bought at least 910 days before you file. Also, it must come from a high interest loan and you have to have been consistently working.
Act at the right time. Timing is important, and that is especially true when filing for bankruptcy. In some cases, you should file for bankruptcy right away, but in others, there may be reasons why filing quickly would be a bad idea. Discuss your specific situation with a bankruptcy lawyer to find out when would be your best time to file.
Before filing for bankruptcy, establish the fact firmly in your mind that you have nothing to be ashamed of. You may need to get credit counseling or simply learn how to balance your budget. Try not to give in to these feelings, as they are of no help to you and they can affect your emotional health. If you want to cope with your bankruptcy filing successfully, you must maintain a positive point of view.
Bankruptcy can cause anxiety and a host of other physical and emotional issues. Look for a good attorney who can help you through the process. Don’t let cost be the sole factor in who you hire. It is not necessary to engage the lawyer who charges the highest fees; all you need is a lawyer of high quality. Look to the bureau for better business, consultation, as well as others who have formerly experienced bankruptcy for more information about lawyers. You could also sneak into court to watch a real live bankruptcy proceeding to see how that attorney handles the situation.
Before you file for personal bankruptcy, take great care in paying off your debts. Check the bankruptcy laws in your state to make sure you have not done anything in the past year to make yourself ineligible to petition for bankruptcy. Before making any final decision concerning your finances, you should be educated on the rules of bankruptcy.
Before you file, make the choice to be fiscally reliable. Do not take on more debt or use more of your current credit. Creditors and judges look at your current and past financial history when they make a decision about your personal bankruptcy. Try demonstrating that your current behavior and financial habits have positively changed.
As you can see, bankruptcy is quickly becoming more popular due to the poor state of our economy. To make sure the best decisions are being made in terms of bankruptcy, use this advice.
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