Bankruptcy is stressful, but it can provide financial relief. You will be forced to expose your financial life to outsiders and you will have to sift through all of your assets and obligations. The relief is that your phone will stop ringing with harassing phone calls from debt collectors, and you can begin to rebuild your credit. You can make bankruptcy easier with the following tips.
Any bankruptcy consultation should be free of charge. Most lawyers offer free consultations, so consult with a few before settling on one. Only make your decision if all your questions and concerns are adequately addressed. It is not necessary to come to a decision immediately following the meeting. So you have sufficient time to speak with a number of lawyers.
Stay up to date with any new bankruptcy filing laws. These kinds of laws are constantly changing and it is important that you are aware of these changes, so that you can learn how to properly file for bankruptcy. To stay up-to-date on these laws, check out your state’s government website.
Chapter 13
Before filing for bankruptcy, determine whether Chapter 13 or Chapter 7 is appropriate for your financial situation. If Chapter 7 is what you file, your debts will get eliminated entirely. You will no longer be liable for any money that you owe to your creditors. In a Chapter 13, though, you’ll be put on a payment plan for up to 60 months before being free of your debts. You need to determine which type of bankruptcy is right for you given your unique financial situation.
Take advantage of the opportunity to consult with a number of bankruptcy lawyers who offer the first visit at no charge. Meet with the actual lawyer, not a paralegal or assistant, as they’re not allowed to give out legal advice. Looking for an attorney will help you find a lawyer you feel good around.
If your income exceeds your obligations, you should not seek bankruptcy protection. Filing for bankruptcy can really damage your credit in the long run, by staying on your report for up to ten years.
You can still take out a car loan or mortgage while you are in Chapter 13 bankruptcy. However, it will be a longer and more arduous task. First, your trustee will have to approve the loan. You will need to come up with a budget and show that this new loan payment schedule is doable. They may also want to know why you believe you need the loan.
Make sure you are aware of all your options before you file for bankruptcy. Credit counseling is an important option for you to pursue. There are a number of companies that will assist you, many of which are non-profit. They can work with both you and your creditors to find a feasible way in which your debts can be paid off. They collect payments from your and then pay the creditors.
Be mindful of paying off outstanding obligations before you file a bankruptcy petition. Bankruptcy rules generally outlaw repayment of creditors in the 90 days leading up to a bankruptcy filing, a period that is extended to one year when it comes to payments made to family members. Read the rules before making financial decisions.
After filing bankruptcy, many people refuse to use credit cards or get loans. This isn’t necessarily a good strategy to follow because good credit is established by getting, and handling, credit responsibly. If you never work on rebuilding your credit after a bankruptcy, you may not be able to qualify for a car loan or mortgage. Start with one credit card to get your credit going in the right direction.
All your debts must be listed on your bankruptcy petition, regardless of whether or not you want them to be. Debts that you neglect to include in your paperwork won’t be discharged. It is solely your responsibility to ensure all important information is documented. Doing so can help you make sure you don’t end up paying debts that should have been discharged.
If you acquire a new job prior to filing for bankruptcy, keep moving forward with your filing plans. Bankruptcy could still be your best option. Choosing when to file can have a big impact. If you can file for bankruptcy before receiving additional income, this extra money won’t count against you.
Some lawyers offer free phone services that you can refer your creditors to in regard to any delinquent accounts. You will be given a phone number where they can call to get information regarding your bankruptcy. By doing this, you can stop these calls from occurring again.
In most cases, if your case is dismissed due to an error you’ve made, you’ll have the opportunity to re-file. Yet in most cases, the automatic stay is only for about a month. If you can justify your mistakes, the judge might decide to extend this stay so you can re-file again.
Credit Card
Just because you are facing stiff taxes does not mean that a bankruptcy can work for you. There are those filers for bankruptcy who have used a credit card to make tax payments and then filed for bankruptcy. By moving the balance to a card, they believe they can get out of paying the taxes owed. The laws governing bankruptcy forbid this practice and you will be left with both your tax and credit card debt.
There are benefits and detriments to filing bankruptcy. No matter why you are filing, good information is needed. After reading the tips we present here, you will be able to manage your bankruptcy filing with ease. As long as you implement these tips how you read them, you should be able to make much more sense of the process.
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