Embarking on a personal bankruptcy filing can be quite complicated. There are many kinds of bankruptcy. They one you decide on should be based on your current debts and finances. Research into what will best suit you is important before you consider filing. The advice in this article can be a good starting point for you.
Don’t think that loading up your credit card with tax debt and then filing for bankruptcy is an answer either. Most places will not consider the debt dischargeable, meaning you will have to pay the IRS a lot of money. Generally speaking if you can discharge the tax, you can discharge the debt. Therefore, you have no reason for use of a credit card, if the amount is to be discharged in due process of the bankruptcy.
Always be honest and forthright when it comes to your bankruptcy petition. Don’t hide income or assets from your lawyer or the bankruptcy trustee or you may find yourself in legal trouble.
When a bankruptcy is imminent, retain a lawyer immediately. Having a lawyer on your side is the best way to avoid mistakes and bad decisions. An attorney that specializes in personal bankruptcy, can help guide you and make sure that your filing happens properly.
Stay up to date with any new bankruptcy filing laws. Laws are subject to change, and it’s important that you’re educating yourself about current code only. To stay up-to-date on these laws, check out your state’s government website.
Before picking a bankruptcy lawyer, speak with more than one, since most offer a consultation for free. 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. Hiring a lawyer could help you become comfortable with the legal things that you will encounter.
There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. Weigh all the information you can find on- and off-line to make an educated decision. 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.
Chapter 13
Consider Chapter 13 bankruptcy. With a consistent income source and less than $250k in debt, try filing for Chapter 13. You can secure your home under Chapter 13 and pay your debts with a payment plan. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. Bear in mind that if you miss a single payment that is due under your plan, the entire case will be dismissed by the Court.
If you are moving forward with a Chapter 7 bankruptcy, you need to learn how that can negatively affect anyone who shares loans with you. If you choose Chapter 7, you are no longer responsible for joint debts. But, creditors will ask for the money from your co-debtor.
Make sure the time is right when you file a bankruptcy claim. Timing can be critical when it comes to personal bankruptcy cases. For some people, filing right away is best, however for others, waiting a while is best. Speak to a bankruptcy lawyer to determine what the ideal timing is for your personal situation.
You should never feel shame for needing to file for bankruptcy. This process is less that glamorous, and it makes most people lose their self-esteem. Do not let these negative feelings influence your decision. If you are filing for bankruptcy and you are thinking negatively about the situation, make an effort to stop that now.
Financial Information
Every single piece of financial information you have needs to be studied and properly listed when filing a bankruptcy claim. Forgetting anything can cause a delay, or even a dismissal. No matter how insignificant a sum seems, include it in the documentation. This financial information may include income from side jobs, vehicles you own and loans you have not paid off.
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. By speaking with a professional in a timely manner, you can get good advice before the bankruptcy process gets too difficult.
Organize your debts into an easy-to-read list. After this, you can file bankruptcy, so make sure this document is accurate. You want to be as exact as possible about the amounts you owe; examine your records carefully. Do not rush through this process; if you want the amounts discharged, you have to get those numbers right.
Now after reading the above article you see that bankruptcy must be thought over extremely carefully before going through with it. If you know what makes sense for you, you can work with an experienced bankruptcy lawyer and get ready to experience a clean financial slate.
