Just thinking about bankruptcy is more than enough to strike substantial fear into anyone’s heart. The piling on of debt and not being able to support their family is an awful situation for many to ponder. If this sounds like you and you are experiencing these feelings right now, the advice here will be of help.
Generally bankruptcy is filed when a person is facing insurmountable debt. If this sounds like you, start familiarizing yourself with your state laws. When it comes to bankruptcy, states have varying laws. In a few states, they see to it that your house is protected. This is not the case when it comes to other states. It is best to become familiar with your state’s laws regarding bankruptcy before you take the steps to file.
Honesty is of utmost importance during your filing, even though it may be tempting to “pad” your answers a little. Not only is hiding income and assets wrong, it is also a crime.
Don’t try to hide anything if you are filing for bankruptcy, as this will hurt you in the long run. It is necessary to be open regarding both the positive and negative aspects of your financial life. Don’t hold back information and create a strategy so you can deal with what’s really happening.
Be aware of recent changes, if any, in the bankruptcy code. Bankruptcy law evolves constantly, and it’s important to stay up-to-date to ensure that you file properly. To stay up-to-date on these laws, check out your state’s government website.
Protect your home. Filing for bankruptcy does not mean you have to lose your home. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. Another option is the homestead exemption that has certain income and financial requirements, but may also allow you to keep your home.
If your paycheck is larger than your debts, avoid filing for bankruptcy. Bankruptcy may appear like the easier way to avoid paying your old bills, but it is a huge mark on your credit score and remains there for up to 10 years.
Speak with your attorney about ways you can keep your car. You can often lower your payment using Chapter 7 bankruptcy. There are qualifications, such as the loan being high interest and a good work record for this option.
Before filing for bankruptcy, you must be educated on the specifics of all bankruptcy laws. For instance, it’s prohibited for an individual to transfer assets to someone else a year before filing for bankruptcy. Not only that, but the filer cannot lawfully accrue additional debt just prior to filing.
Do not omit any information about your finances, assets or debts when filling out your bankruptcy paperwork. If the court thinks you are attempting to conceal information, your petition could be denied. All financial information needs to be considered by the court. This type of income could come from doing odd jobs, extra cars or outstanding loans.
If you are planning to file for bankruptcy in the immediate future, you should refrain from taking out cash advances via your credit cards. Doing so, is a type of fraud that may result in your having to pay back all money advanced from credit card accounts in the months just prior to your bankruptcy.
Be cautious if you are planning to pay off any of your debts before you file for bankruptcy. You may find that bankruptcy law prohibits you from paying back some types of creditors for 90 days before you file, and a year for family members. Read up on the rules before you make any decisions about your finances.
When thinking about filing for bankruptcy, it is best not to waste precious time. Your debt will only continue to mount as you waiver on the decision, difficult as it might be. If you are not sure, gather all of your information and spend a little time speaking with a bankruptcy attorney; their experience can help you make the right decision.
If you’re continuously making delinquent payments and are constantly missing payments, filing for bankruptcy might just be a kinder, gentler solution for you. While bankruptcy will show up in you credit file for the next 10 years, you can begin the process of making your credit situation better right away. Getting a fresh start is one benefit of bankruptcy.
Personal Bankruptcy
It is not unusual for people to be worried about bankruptcy; the process is nerve-wracking. If you understand all of the ins and outs of personal bankruptcy, you need not fear it. You can improve your life and safeguard your family by following the personal bankruptcy advice presented here.
