Although circumstances leading to bankruptcy may not be positive, life following bankruptcy can be. Maybe what you need is a fresh start. You can find this by filing a bankruptcy claim. Continue to read this article to learn how good a bankruptcy can end up being for your life.
Once a person’s debts outstrip his or her ability to repay them, bankruptcy may be the only option left. If you have unmanageable debt, you need to familiarize yourself with regional bankruptcy laws. Laws differ from one state to the other. For instance, in some states you can keep your home and car, while other states prohibit this. Know what the laws are in your state before filing.
Make certain that you comprehend everything regarding personal bankruptcy by studying online. The United States Run a quick Internet search to find out all the different agencies you should be contacting or visiting via the web to find out what you can. The more you know, the better equipped you’ll be to make the wise decisions needed for a successful bankruptcy.
Credit Cards
You should avoid paying your taxes with credit cards and then immediately file for bankruptcy. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. Generally speaking if you can discharge the tax, you can discharge the debt. So, in short, do not use your credit cards to pay off debts right before you file for bankruptcy.
Before you proceed with your personal bankruptcy case, review your decisions to be certain that the choice you are making is the right. Look into credit counseling to see if it could help you work out of your debt without bankruptcy. Bankruptcy can leave your credit history permanently marked. Prior to doing this you need to be sure you try everything else first to get your credit history into shape and to lessen the impact.
Do not be afraid to remind your attorney of important specifics of your case. Don’t assume that they will recall every detail that you go over with them without a friendly reminder. Speak up. This is your life, and your future depends on it.
Investigate any new laws before deciding to file a bankruptcy. If you want to file for bankruptcy successfully, it’s important to review the latest applicable laws. They tend to change frequently. All of these changes will be addressed on the state’s legislative site. You can also contact them directly by phone or office visit.
Before declaring bankruptcy, ensure that all other options have been considered. 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 may also find people will allow you to make lower payments. If that happens, get records of the debt modifications.
Chapter 13
Be certain to grasp the distinction between Chapter 7 and Chapter 13 bankruptcy cases. All debt will be eliminated with Chapter 7. You will be removed from any contracts you have with your creditors. Chapter 13 is different, though. This type of bankruptcy entails an agreement to pay off your debts for five years prior to wiping the slate clean. It’s important to know what differences come with every type of bankruptcy. This will let you find out what’s best for you.
Safeguard your home. Filing bankruptcy does not necessarily mean that you will lose your house. You can still keep your home, it just depends on your specific situation and the value of your home. Otherwise, look into the homestead exemption which may allow you to stay in your home if you meet financial threshold requirements.
Once your bankruptcy filing is under way, take the time to decompress a little. The process of filing for bankruptcy can make people a nervous wreck. Depression and burn-out from pent of stress will do nothing to help your situation, so it is critical to let go a little. Things will be sunnier after you take positive steps to move forward.
Filing for bankruptcy can cause stress. In order to keep things together and protect yourself from excess stress, be sure to hire a competent attorney. Don’t make your choice to retain a particular lawyer simply because they are the cheapest. Think about quality rather than cost when hiring an attorney. Speak with trusted people, check the BBB and take advantage of the free bankruptcy attorney consultations. You can attend court hearings if you want to see a prospective attorney in action.
When you are filing for bankruptcy, make sure you list all of the financial information you may have. Leaving out information either purposely or by mistake can prolong your petition, or have it dismissed completely. Add absolutely everything to your list, including small amounts. Don’t forget about side jobs, loans you’ve taken out or vehicles that might count as assets.
Don’t take large cash advances from credit cards prior to filing since the debts will be eliminated from these cards. That is considered fraudulent behavior, and you can still have to pay the credit card back, bankruptcy or no.
Learn from the mistakes you made that sent you to bankruptcy court. The initial process might be difficult and draining, but there’s something special waiting on the other side. Actually, your life can become much better by following the advice presented here and moving forward past bankruptcy.
