Have you found yourself in a tight financial spot, and feel that bankruptcy is your only way out? You aren’t alone. Millions of people, each year, have chosen bankruptcy as their only option for financial freedom. The following article offers many great tips on bankruptcy that can be very helpful when faced with this situation.
Don’t use a credit card to pay off your taxes before filing for bankruptcy. In a lot of places, the debt cannot be discharged, and you may still owe money to the IRS. Generally speaking if you can discharge the tax, you can discharge the debt. Just because your credit card could be discharged in bankruptcy does not mean you should use it.
Make sure you’ve exhausted all other options prior to declaring bankruptcy. You have better options. For example, you could try credit counseling. Bankruptcy has a negative effect on your credit reports, in that it is permanently there. Before you take this step, make sure all your options have been considered.
Don’t fear reminding your attorney of any specific details of your case. Don’t just assume they already know and that they have these important details committed to memory or written down. Be as open as you can be to make sure your bankruptcy goes as well as possible.
Once you file for bankruptcy, you will have a hard time getting loans or credits. This being the case, look at secured card options. If you pay what you owe back promptly at all times, you can show that you are taking steps to be responsible about your payments and credit rating. In time, you might be granted unsecured credit again.
When choosing a bankruptcy lawyer, your best option is to find someone who is recommended by someone you know versus someone who you find online or in the phone book. You want your bankruptcy to go smoothly, and the Internet is rife with fly-by-night companies whose only goal is to prey upon the financially desperate.
Before you decide to file bankruptcy proceedings, determine which assets will be safe. The Bankruptcy Code provides a listing of the various asset types that are not included in the bankruptcy process. It is vital that you completely understand which assets are protected and which assets can be seized prior to filing bankruptcy. Failure to do this could cause some ugly surprises down the road when you discover that your valuables must be seized.
You must be absolutely honest when filing for personal bankruptcy. If you try to hide any of your information, it will eventually surface and cause you problems. Penalties may include fines, imprisonment or denial of the filing. Do not hold anything in secret and create a strategy on how you will deal with the things you are facing.
Do not give up. You may be able to regain property like electronics, jewelry, or a car if they’ve been repossessed by filing for bankruptcy. If you have been subject to a repossession during the 90 days before your filing, you stand a good change of getting your property back. Discuss your options with a good lawyer who can help you with the filing of your bankruptcy petition.
Before filing for bankruptcy, hire a qualified attorney. The topic of bankruptcy is a complicated one and it is important that you know all about it. Talk to a bankruptcy lawyer, they can help clarify anything that you might have confusion with.
Be sure you know what the difference between Chapter 13 and Chapter 7 bankruptcy is. Research them online to see the positive and negative aspects of each one. Learning about bankruptcy is not simple, so call a bankruptcy attorney to make an appointment to ask questions.
If you make more money than you need to pay your bills, you should not file for personal bankruptcy. It can seem like bankruptcy can be an easy way to avoid paying back your debts, however it leaves a serious mark in your credit report that can last between seven and ten years.
Make sure that you act at the appropriate time. In bankruptcy filing, timing is quite important. Sometimes, you may need to file quickly; however, at other times, you should wait until the worst is over. Talk with a bankruptcy attorney to find out the ideal timing for filing based on your particular situation.
Avoid using bankruptcy as a last resort. What a lot of people do is ignore the fact that they are in a financial crisis and think that their debt is not going to catch up to them. If you have failed to make payments for several months but have continued making purchases on credit, your petition may be denied. As soon as you see your debts getting out of control, seek the counsel of a good bankruptcy attorney to see what your options are.
The introduction to this article emphasized that many, many people have filed for bankruptcy in the past and many will in the future. Yet one thing you have that others who file do not is the information from this article. Use the information here to help see you through a smooth bankruptcy.
