Filing for bankruptcy is not a pleasant experience. Bankruptcy can be ugly, embarrassing and a tough thing to talk about. Read this article to learn more about bankruptcy and make the best decision.
Think twice if you have struck upon the idea of paying off your taxes by credit card and subsequently filing for personal bankruptcy. In some places the debt can not be discharged, and you may still need to pay the IRS afterward. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. So, in short, do not use your credit cards to pay off debts right before you file for bankruptcy.
Retirement Accounts
As bankruptcy appears on the horizon, don’t take your savings or retirement accounts to try to pay off all your bills. Do not tap retirement accounts unless there is no other alternative. You may need to use some of your savings; however, you should not use all of your savings. Remember that you must safeguard your future financial security.
One of the most important things to remember when filing for bankruptcy is to be honest and truthful every step of the way. You must avoid the temptation to conceal any valuables, money or other assets from the courts. If they find that you have lied, you may be faced with fines, penalties or the inability to file in the future.
Don’t feel bad if you need to remind your attorney about any specifics of your case. Lawyers are people too, and sometimes they forget important information and need to be reminded. Remember that you’re the boss. You’re paying your lawyer, so you should not be afraid to have your say. After all, the quality of your life hangs in the balance.
If you can, get a word-of-mouth referral for a lawyer. Bankruptcy attracts a lot of fly-by-night firms that take advantage of desperate people, and a word-of-mouth recommendation makes it more likely that your bankruptcy will go smoothly.
Chapter 7
Be sure you know how Chapter 7 and Chapter 13 differ. In Chapter 7 bankruptcy, your debts are all eliminated. Any ties that you have with creditors will be dissolved. Chapter 13, on the other hand, involves a five year payment period before any remaining debts are cancelled. To make the wisest choice, you will need to understand the consequences of each of these two options.
Take advantage of free consultations with lawyers and the ability to sift through and find the right one. Make sure you meet with a licensed attorney rather than a paralegal or assistant, because it is illegal for these people to give legal advice. Considering several different lawyers can help find someone to trust.
Bankruptcy should not be filed by anyone who makes more than their bills cost. Remember that the record of your personal bankruptcy filing will be discernible on the report of your credit for as many as 10 years. For this reason, bankruptcy filing should not be taken lightly.
It is possible to get an auto loan or mortgage during the repayment period for Chapter 13 bankruptcy. There are extra hoops to jump through. Your trustee must approve any new loans. You need to develop a budget and show that you will be able to afford the new payment. The odds are also good that you will be asked exactly why you’re purchasing a new item. Make sure you have a good reason.
Bankruptcy is a difficult time that always leads to lots of stress. To relieve yourself of some stress and keep thing organized, hire a good lawyer. Get recommendations and look into other qualifications rather than just choosing based on cost alone. The most expensive attorneys are not necessarily the best ones. Look to the bureau for better business, consultation, as well as others who have formerly experienced bankruptcy for more information about lawyers. Try attending a hearing to find out how bankruptcy attorneys handle the situation.
Personal Bankruptcy
Understand the rules and laws before submitting your petition for bankruptcy. There are many pitfalls when it comes to the code pertaining to personal bankruptcy that can lead to a lot of unwanted issues. Making mistakes can have an effect on the outcome of your case. Spend some time learning about personal bankruptcy. This will make things much easier.
Filing a claim doesn’t always result in losing possessions. Many times you will be allowed to keep your personal property. This will include things like clothes, jewelry and electronics. Exactly what assets you can hang onto will depend on the applicable laws in your state, your filing status, and your personal finances.
If you need to file for bankruptcy, consider retaining a bankruptcy lawyer. A legal professional can help quell any confusion you have about the process. The process won’t be simply, and your attorney can help you understand the necessary paperwork.
Always document all the debts you want to be eliminated. Any debts that you leave off of your paperwork will be left out of the final discharge. Double-check the paperwork before you file it. Otherwise, you might be liable for debts that you could have gotten rid of during bankruptcy.
Clearly, filing for personal bankruptcy is not your only option. The tips laid out here will guide you toward the right road so you can avoid bankruptcy. Learn to live within your means and bankruptcy may be avoided.
