Although bankruptcy causes stress, it can help financially. There is the need for all your finances to be exposed, and multiple people scouring your financial information. On the other, you get to enjoy the peace that comes when the bill collectors stop calling you. You can make the bankruptcy process easier on yourself by keeping the following tips in mind.
Learn as much as you can about bankruptcy by going to informational websites. Many sites, including the U.S. Department of Justice and National Association for Consumer Bankruptcy Attorneys provide excellent information. Knowing is half the battle, after all, and these websites are the first step in learning what you need to know to make your bankruptcy smooth and stress-free.
Credit Card Debt
Do not pay your taxes with credit cards that will be canceled when you file for bankruptcy. The fact is that the credit card debt will be ineligible for discharge, and your tax debt may increase. Keep in mind that if the tax debt is eligible to be discharged, then the credit card debt is also dischargeable. It is pointless to use credit cards if they can be discharged.
As filing bankruptcy becomes more of a reality, don’t use your entire savings or your retirement funds to pay creditors or attempt to resolve insolvency. You should not use your retirement savings unless the situation calls for it. Although it is quite normal to use some of your savings, ensure that you leave enough in your account for emergencies.
If you are planning to file for bankruptcy, be sure to learn what types of assets you will be able to keep and which can be seized. Check the bankruptcy laws in your state to find out if certain items are excluded from your bankruptcy filing. It is important that you read this list before filing for bankruptcy, so that can find out whether or not your most prized possessions will be seized. If you don’t read this list, there is a chance that you might get nasty surprises when they take your things away.
No good will come of trying to conceal your assets or your liabilities in the bankruptcy process; you want to be scrupulously honest when you declare bankruptcy. It is necessary to be open regarding both the positive and negative aspects of your financial life. Telling the truth will allow you reach a solution that is feasible, given your current situation.
It is a good idea for you to hire a bankruptcy to handle your bankruptcy process. There are a lot of things to do during bankruptcy and that may be hard for you to understand on your own. A bankruptcy attorney can help yo,u and make certain you can do things the right way.
Before making your decision to file for bankruptcy, double-check to see if other, less drastic options could make sense. You could find relief from small debts by using a consumer credit counselor. You may also find people will allow you to make lower payments. If that happens, get records of the debt modifications.
Bankruptcy Lawyer
Before picking a bankruptcy lawyer, speak with more than one, since most offer a consultation for free. Ensure that your meeting is actually with the attorney, not with a paralegal or an assistant. People in these positions are unable to offer legal advice. It will be important to work with a bankruptcy lawyer that you feel comfortable with; a little comparison shopping will help you find the right one.
Be sure your home is well protected. Filing bankruptcy does not necessarily mean that you will lose your house. Whether you get to keep your home depends on a few things, including its value and whether you have debts like a second mortgage or HELOC. If you meet certain criteria, you may be able to retain ownership of your home even after filing for bankruptcy.
If keeping your vehicle is of great concern, ask your lawyer if you can secure a payment modification. Chapter 7 bankruptcy is one of the most common and effective. In order for this to be considered, your car loan must be one with high interest, you need a solid work history and the car should have been bought 910 days or more prior to you filing.
There are many different reasons why people choose to file for bankruptcy. No matter why or what put you in this situation, the best thing you can do right now is educate yourself on the bankruptcy process. You will have an easier time with your bankruptcy filing thanks to this article’s tips. Use the above tips to see positive results when filing for bankruptcy.
