If you have accumulated a lot of debt and are about to file for bankruptcy, let go of your worries. There are many effective ways to help yourself get back on your feet financially so you do not have to file for bankruptcy. Read the following article to learn how to stay away from bankruptcy.
Do not use a credit card to pay income taxes and then file for bankruptcy. In a lot of places, the debt cannot be discharged, and you may still owe money to the IRS. If the tax can be discharged, so can the debt. Just because your credit card could be discharged in bankruptcy does not mean you should use it.
Before undertaking the bankruptcy process, ensure you have made the correct decision. There are other options available, such as credit counseling for consumers. 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.
Always be honest with the information you give about your finances. You might feel tempted to not declare certain assets in your bankruptcy in order to protect them from forfeiture, but if you’re found out, the process could take longer, or worse, you might be banned from filing for bankruptcy completely.
No matter what, don’t give up! You can often have property returned to you. Autos, jewelry and even electronics that have been repossessed, could be returned. You may be able to recover repossessed property if the repossession occurred fewer than 90 days ago. Interview and research attorneys before choosing one to help you with your bankruptcy.
Check into less drastic solutions prior to declaring bankruptcy. For example, consumer credit counseling programs can help you by renegotiating your debts with your creditors into payments that you can afford. You may also find success in negotiating lower payment arrangements yourself, but be certain to get any arrangements with creditors in writing.
Do some research to find out more about Chapter 13 and Chapter 7. Under Chapter 7 type bankruptcy, all debts are forgiven. Any ties that you have with creditors will be dissolved. In a Chapter 13, though, you’ll be put on a payment plan for up to 60 months before being free of your debts. You need to determine which type of bankruptcy is right for you given your unique financial situation.
Learn the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Weigh all the information you can find on- and off-line to make an educated decision. Once you have done your own research, be sure to review your findings with your lawyer, who is the expert. This way, you can be sure of making a well informed choice.
Take some time after filing for bankruptcy to enjoy life. Bankruptcy is a stressful process: you will have to go over your bad financial decisions and perhaps feel ashamed about your decision. This stress may lead to something worse like depression, so do what you can to fight that from happening. Remember that your situation is going to improve after you file for bankruptcy.
Talk with your lawyer about getting lower payments for any car you wish to keep. A lot of the time you can lower payments by filing for Chapter 7 bankruptcy. If you meet the criteria specific to your state, it may be a good option to consider.
Forget about detrimental terms, such as shame, when you are filing for personal bankruptcy. Feelings of low self-worth, shame and guilt are common for those who have come to the point where bankruptcy is their only option. Try not to give in to these feelings, as they are of no help to you and they can affect your emotional health. Having the right outlook during a tough financial upheaval is a great attitude in coping with bankruptcy.
Do not put off filing for bankruptcy. A lot of people ignore their financial problems, thinking they are going to go away; that is a big mistake. Debts can multiply very quickly, and can result in you losing money to wage garnishment, or even losing assets that are part of a secured loan. Once you realize that the debt you have is too much for you to handle, start thinking about talking to a bankruptcy attorney, they can guide you throughout the entire process.
Make sure you are completely aware of bankruptcy laws before you consider filing. For instance, you are not allowed to move assets from your name to someone else’s for a year before you file. Also, a person cannot legally increase their debt amount on credit cards prior to filing.
Make sure that you disclose every bit of financial information on your bankruptcy petition. If the court thinks you are attempting to conceal information, your petition could be denied. You might think some asset or debt isn’t worth bothering with, but you should disclose it just to be on the safe side. This may include secondary employments, vehicles you own and loans you still owe money on.
Planning can make a big difference. If you can buy yourself, time then do it; the more the better. Doing so can help you avoid bankruptcy. Now is the time to begin making plans for the future.