There are many people who are now in debt levels over their heads. They are harassed by collection calls and creditors all while the bills keep piling up. You may have found yourself in the same situation, and you should know that bankruptcy could be a good option for you. Go over the tips presented in this article to figure out if bankruptcy is the best solution.
Don’t use credit cards to pay your taxes if you’re going to file bankruptcy. In most states, this debt won’t be discharged, and you could end up owing the IRS a whole lot more. Should the tax be dischargeable, the debt is often dischargeable as well. So as you can see, in this situation there is no need to use the card when the debt will be discharged when you file for bankruptcy.
Be sure to remind your lawyer if it seems that some details of your situation are forgotten. It is wrong to assume that your lawyer will remember every word you ever utter! It’s your financial future that is in his hands; don’t hesitate to speak up.
Don’t try to hide anything if you are filing for bankruptcy, as this will hurt you in the long run. The lawyer representing you when you file needs to have full knowledge of your financial situation. Be completely honest in your paperwork to avoid a situation that may end in severe punishment.
Free Consultations
Find a bankruptcy attorney who offers free consultations, and ask lots of questions. Free consultations are standard practice among bankruptcy lawyers, so interview multiple candidates before making a final decision. Make a decision when all your concerns and questions have been addressed well by one lawyer in particular. You don’t have to make your decision right after this consultation. Consulting with several attorneys will also help you find someone you trust.
When a bankruptcy is imminent, retain a lawyer immediately. With all the ins and outs of bankruptcies, it can be hard to grasp all the knowledge. Talk to a bankruptcy lawyer, they can help clarify anything that you might have confusion with.
It is possible to keep your home. Filing for bankruptcy will not always result in losing your home. Whether you get to keep your home depends on a few things, including its value and whether you have debts like a second mortgage or HELOC. 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.
Learn and gain a firm grasp of the differences in applying for Chapter 7 bankruptcies versus Chapter 13 bankruptcies. Take the time to learn about them extensively, and then figure out which one will be best for your particular situation. If there is anything that you don’t understand, go over it with your lawyer so that you can make the best decision.
Chapter 7
Before you choose Chapter 7 bankruptcy, think about what effect that is going to have on any co-signers you have, which are usually close relatives and friends. When filing Chapter 7, you are not legally responsible for the debts in your name. But, bear in mind, the debt now becomes the sole responsibility of your co-debtor.
Know your rights when filing for bankruptcy. Collectors may try to convince you that your debt can’t be discharged. Most loans can be discharged outside of certain things, like child support or loans you are paying back due to student lending. If any debt collectors tell you that their debts can’t be bankrupted, make a report with your state attorney general.
Create a list of all of your finances before filing for bankruptcy. Failing to disclose all of your financial information can cause your bankruptcy petition to be dismissed, or, at the very least, delayed. You might think some asset or debt isn’t worth bothering with, but you should disclose it just to be on the safe side. When it comes to the types of things you might not be thinking about adding, just think about any automobiles you have, any money under the table you’re making, etc.
Review bankruptcy rules before you file your petition. The code governing personal bankruptcy is a complex area that is subject to much misunderstanding. Some mistakes can even lead to your case being dismissed. Make sure you have a decent understanding of the bankruptcy process before you proceed. Doing so will pave the way to an easier process.
When you have decided that bankruptcy is the right route for you to take, you need to act relatively quickly. It can be difficult to admit you’re in need of help, but your debt will only grow larger if you put off your decision. When you speak with a professional quickly, you will get valuable advice that will help to prevent your situation from spinning out of control.
Many people who file for bankruptcy vow to stop using credit cards. That is not a great idea, because using credit builds better credit. If you never use credit, you won’t be able to rebuild the good credit that you will need to make future purchases. The best way to help build your credit is to get one credit card and pay it off at the end of every billing cycle.
Personal Property
When you file for bankruptcy remember that you are not going to lose all your assets. Many times you will be allowed to keep your personal property. Personal property includes items like furniture, electronics, jewelry, and clothing. While this varies based on the laws in your area, your particular circumstances and the kind of bankruptcy you choose to go with, it may be possible to keep big-ticket items like your automobile or even your residence.
Now you should be aware that there is plenty of available help when thinking about filing for bankruptcy. If you deal with your stress in a positive way and make level-headed decisions, your bankruptcy filing will be a step in the right direction for a renewed financial future.
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