The economy today is in a dreadful state. When the economy is bad, people lose their jobs and that means debt begins to pile up. Debts can lead to bankruptcy, something that is very bad. This article can help you or someone you care about if bankruptcy is a consideration.
It’s important that you understand what bankruptcy is and how it will change your life before you attempt to file a claim. The United States Check out the Bankruptcy Institute site and do some research about consumer’s rights. The more you know, you can be confident you are choosing the right thing and that you are taking the right road to make sure your bankruptcy proceeds as easily as possible.
Don’t use credit cards to pay your taxes if you’re going to file bankruptcy. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. 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.
Credit History
Ask yourself if filing for bankruptcy is truly your best option. There are other options available, such as credit counseling for consumers. Bankruptcy is a serious negative on your credit history so make sure you have no other options before you file. It is important to keep your credit history as positive as possible.
When you feel certain that you must file for personal bankruptcy, refrain from squandering your life savings to pay off unsecured debt. Retirement accounts should never be touched if it can be helped. 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.
It is important to remind your lawyer of any details that may be important to your case. Do not assume that if you’ve already told him or her something important once, that they will remember it later without a reminder. It is in your best interest to speak out. You are in control of the outcome of your bankruptcy.
Do some research to find out which assets you could lose by filing for personal bankruptcy. Check the bankruptcy laws in your state to find out if certain items are excluded from your bankruptcy filing. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. You wouldn’t want to unexpectedly lose any possessions you treasure.
If you are seriously thinking of filing bankruptcy, make sure that you contact an attorney. You might not understand all of the various aspects to filing for bankruptcy. A qualified bankruptcy attorney will guide you through the steps and help you do everything properly.
Think carefully about your different options before filing for bankruptcy. There are numerous programs out there that may assist you with your debt, like a credit counseling program, a nonprofit group, government assistance, etc. You should also try negotiating a payment plan with your creditors; make sure you get a written agreement of the new payment plans.
Become knowledgeable in regards to details about chapter seven bankruptcy vs. chapter 13 bankruptcy. Research both types of bankruptcy online, and weigh the positives and negatives each would offer you. Engage your attorney in a conversation about each type, and ask him to answer any questions you may have before deciding which kind is right for you.
Never forget that you still deserve to enjoy life while you go through the bankruptcy process. Many debtors stress-out during the time of filing. That stress can cause depression, if you don’t take care to avoid it. You are getting a fresh start, and things will get better.
Financial Information
Include your entire financial information when you file for bankruptcy. Failing to disclose all of your financial information can cause your bankruptcy petition to be dismissed, or, at the very least, delayed. Even if it’s a small sum, make sure it is listed. This type of income could come from doing odd jobs, extra cars or outstanding loans.
Know that bankruptcy can be much better for your finances than missing payments or making late payments on debts. Though bankruptcies can remain on your credit record for 10 years, it is possible to begin credit repair initiatives immediately. One of the best benefits to bankruptcy is the promise of a fresh start.
Filing for bankruptcy doesn’t mean you will lose all your assets. You can keep your personal property. In other words, your clothes, your television, your computer, your furniture, your jewelry and other household items are safe. Your current state’s laws, deciding between Chapter 7 or 13, and your current financial position will determine just how much you get to keep.
Take the time to make a complete list of your debts. Only the debts you list on your bankruptcy filing will be discharged, so make sure all of them are included. Double check all of your records so that you do not overlook anything. Take care not to miss any debts that you need to disclose, or you will be responsible for paying them back after you have filed for bankruptcy.
Although the economy appears to be improving, there are many, like you, who are still struggling financially. Even if you do not have a steady paycheck, you still have options to help you avoid filing bankruptcy. Hopefully, you won’t have to file for bankruptcy. Hopefully better things await you in the near future.
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