How To Find A High Quality Personal Bankrupcy Lawyer

Although circumstances leading to bankruptcy may not be positive, life following bankruptcy can be. The bankruptcy laws allow you to have a second chance at building your credit and meeting all your financial responsibilities. Read this article to learn how bankruptcy is a constructive, not destructive, process in reshaping your financial situation.

You should check with the personal bankruptcy resources available online to educate yourself thoroughly before you begin the process. The United States Justice Department, the ABI (American Bankruptcy Institute), as well as the NABCA (National Assoc. Consumer Bankruptcy Attorneys) are excellent sources of information. You need to spend some time gathering valuable information so you can file your bankruptcy with confidence.

Do not even think about paying your taxes with credit and petitioning for bankruptcy right after. Credit card debt is handled charge by charge during bankruptcy, and in most states, tax debt cannot be discharged through bankruptcy. In most cases, you can use the adage that “a dischargeable tax is a dischargeable debt.” This means using a credit card is not necessary, when it will just be discharged.

A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. Not hiding any assets or income is essential for avoiding possible penalties and your ability to re-file at some point in the future.

Prior to filing for bankruptcy, research which assets will remain exempt from creditors. The federal statutes covering bankruptcy can tell you exactly which assets are exempt from forfeiture to pay off creditors. It is crucial to read the list before you file for bankruptcy so you know whether your favorite items will be taken. Without reading the list, you may be shocked at which possessions can be taken from you.

Do not despair, as it’s not the end of the world. There may still be way to get repossessed items back after you file for bankruptcy. If you have any property in repossession that was taken less than three months before filing for bankruptcy, then there are good odds that you can get your property back. Speak with a lawyer that will provide you with guidance for the entire thing.

Prior to declaring bankruptcy you really need to be sure that you’ve exhausted all your other options first. One example would be that a consumer credit program for counseling if you have small debts. Some creditors will work with you to help you pay off your debt with lower interest rates, lower late fees, or an extended loan period.

Chapter 13

You may have heard bankruptcy referred to differently, either as Chapter 7 or Chapter 13. Learn the differences between the two before filing. Chapter 7 eliminates all debts. You will be removed from any contracts you have with your creditors. But, with Chapter 13, you will be in repayment plan for about 5 years prior to any debts you have being totally dissolved. It is important that you understand the differences between the different types of bankruptcy, so that you can decide which option is best for you.

It is possible to keep your home. Bankruptcy filings don’t necessarily have to end in the loss of your home. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. It can be worthwhile to understand the homestead exemption law to see if you qualify to keep living in your home under the financial threshold requirements.

If you are about to file for bankruptcy, you have probably been through tough times lately. On the other hand, the new beginning that bankruptcy offers can lead to a new life story. By using the tips from the above article, you can turn bankruptcy into a positive turning point.

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