Mention of the word, “bankruptcy” is enough to terrify many. Increasing debt, along with being unable to support a family can be an actual nightmare for some. If this scares you, or you are experiencing this living horror, then this advice will be of use to you.
Have a good look around the Internet to see what information is relevant to you regarding bankruptcy. The United States DOJ, along with a number of other bankruptcy institutes and attorneys specializing in bankruptcy can give you invaluable information. As with everything in life, the more you know about filing a claim, the better off you’ll be. You can properly prepare when you know what you’re preparing for.
Don’t think that loading up your credit card with tax debt and then filing for bankruptcy is an answer either. In most states, this debt won’t be discharged, and you could end up owing the IRS a whole lot more. A common rule is that dischargeable tax means dischargeable 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.
Exhaust every other option before making the decision to file for personal bankruptcy. Other available options include consumer credit counseling. Be certain that bankruptcy is the only option you have before pursuing this course because bankruptcy is always evident on your financial and credit history.
Make sure you are completely honest when filing for bankruptcy. Hiding your assets is never wise. Good or bad, you must tell your bankruptcy attorney everything about your financial situation. Being honest is both the right thing to do and, moreover, it is required by law.
Do not give up hope. Certain property cannot be repossessed while you are in the process of filing for bankruptcy so be sure to learn about the laws in your state. 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.
Since it is possible to obtain a free consultation from the majority of bankruptcy lawyers, meet with a few of them prior to choosing one. Always ensure that the person you meet with is a real lawyer, not a legal assistant or paralegal. These people can’t give legal advice. By shopping lawyers, you will be more likely to find one that makes you comfortable about the process.
Learn the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Take the time to learn about them extensively, and then figure out which one will be best for your particular situation. If there is anything that you don’t understand, go over it with your lawyer so that you can make the best decision.
If your paycheck is larger than your debts, avoid filing for bankruptcy. Remember that the record of your personal bankruptcy filing will be discernible on the report of your credit for as many as 10 years. For this reason, bankruptcy filing should not be taken lightly.
If you have filed for Chapter 13 bankruptcy, you will still be allowed to apply for and receive a mortgage or car loan. However, there are steps which must be taken to ensure you are within the law of bankruptcy. You will need to secure the trustee’s approval for any new debt obligation. You will need to make a budget and prove that you will be able to afford your new loan payments. You also need to be prepared to answer questions about your need for the new item.
Prior to filing, it is important that you know all about bankruptcy laws. You need to know certain things, like the fact that it’s illegal to transfer any asserts 12 months before filing your claim. Moreover, a filer is prohibited from spending or incurring extra debt prior to their bankruptcy filing.
Filing for bankruptcy can be a very scary and intimidating experience. You might have been somewhat afraid of it, but today you no longer need to, thanks to the information this article. Use the bankruptcy information in this article to make your financial life yours again.