As you probably know, the economy is in the toilet. When the economy tanks, many people lose jobs and accumulate debt. And these debts get to the point where people end up filing for bankruptcy. If you’re in danger of going through bankruptcy, then the below article can help you in getting out of it.
Generally bankruptcy is filed when a person is facing insurmountable debt. If you are in this position, you need to be familiar with the laws in your area. Every state has a separate law having to do with bankruptcy. For example, whether or not you can keep your home, as well as what you need to do to keep it, is different for every state. Know what the laws are in your state before filing.
Have a good look around the Internet to see what information is relevant to you regarding bankruptcy. The US Check out the Bankruptcy Institute site and do some research about consumer’s rights. The more you know about it, the better you are able to make the best decision for your situation and to make sure that the bankruptcy proceedings move forward with minimal setbacks.
Credit Cards
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. So, there’s no reason to make use of a credit cards if it will not be discharged in bankruptcy.
You are going to get found out and get in trouble if you don’t disclose all your assets, so be totally honest from the beginning. Whomever you use to file with must know everything there is to know about your finances, both good and bad. Put everything out on the table and craft a wise plan for handling the situation the best you can.
Don’t give up. You might even be able to get back secured property that has been repossessed in the 90 days before filing. You may be able to recover repossessed property if the repossession occurred fewer than 90 days ago. Talk to a lawyer for help with the petition filing process.
When a bankruptcy is imminent, retain a lawyer immediately. Personal bankruptcies are detailed and complex processes, and you may miss something that costs you money. Talk to a bankruptcy lawyer, they can help clarify anything that you might have confusion with.
Before declaring bankruptcy, ensure that all other options have been considered. For example, if you only have a little bit of debt, you might be better off if you went through consumer credit counseling. You may also find success in negotiating lower payment arrangements yourself, but be certain to get any arrangements with creditors in writing.
When you file for bankruptcy, you should be very aware of your rights. Bill collectors will lie to you and say you can’t have their bill discharged. There are not many debts that can not be bankrupted, student loans and child support for example. If you are told by a debt collector that your debts are not dischargeable, make a record of your conversation and report the individual to the proper state authorities.
Make sure that you act at the appropriate time. Timing is important, and that is especially true when filing for bankruptcy. There are situations in which it is in your best interest to file immediately, but other times it is advisable to wait. Speak with a bankruptcy lawyer to see when is the best time for you to file bankruptcy.
If you are going to file for bankruptcy make sure you are prompt. Some people think that by ignoring financial problems, they will just disappear. This kind of thinking could prove to be a mistake. It doesn’t take long for debt to become unmanageable, and not taking care of it could eventually lead to wage garnishment or foreclosure. Once you are aware that your financial situation is not manageable any more, your best bet is to speak with a bankruptcy attorney and find out what he or she recommends.
Adopt a positive attitude toward filing for bankruptcy and researching the topic. It’s very difficult admitting you need help, but waiting too long can actually make it worse. 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.
Every single asset is not necessarily lost when you file for bankruptcy. Most of the time, you retain your personal possessions. This includes items, such as jewelry, clothes, household furnishings, electronics, etc. The personal items that you are allowed to keep will depend on your home state’s individual bankruptcy laws, your personal financial situation and the specific bankruptcy that you are filing for.
Once your bankruptcy has been complete for a month or two, acquire multiple copies of credit reports. You should double-check all the information on those reports to ensure their accuracy. Contact the credit reporting agencies if there is a discrepancy in order to rebuild your credit.
The economic recovery has bypassed many people, leaving their finances in disarray. You can avoid bankruptcy even with no steady source of income. Bankruptcy can be a difficult journey; however, the process can be made easier by learning the aforementioned information. Good luck.
