No one thinks they will ever come face to face with bankruptcy. Sometimes there is simply no viable alternative in a given financial situation. This is when it’s important to understand the basics of bankruptcy. If you get yourself in this type of situation, you will surely find the information in this article very helpful.
Do not pay your taxes with credit cards that will be canceled when you file for bankruptcy. In many areas of the country, this debt will not be dischargeable, and you could be left owing a significant amount to the IRS. A common rule is that dischargeable tax means dischargeable debt. So, in short, do not use your credit cards to pay off debts right before you file for bankruptcy.
Honesty is of utmost importance during your filing, even though it may be tempting to “pad” your answers a little. Do not hide any income or assets or go on a spending spree before filing for bankruptcy: the court will find out and will not have a positive opinion of you.
Don’t be reluctant to remind your lawyer about specific details he may not remember. Many times a lawyer may forget a key detail; therefore, it is important to remind your lawyer of any key information. Don’t be afraid to speak up, as it is your case and your future will be affected by its outcome.
After filing for bankruptcy, you could have trouble acquiring unsecured credit. If you are in this situation, applying for a secured card may be the answer. This will show people that you are serious about getting your credit record back in order. After a certain time, you will then be able to acquire credit cards that are unsecured.
Prior to filing for bankruptcy, research which assets will remain exempt from creditors. The Bankruptcy Code has lists of various asset types that are exempt during the process. Prior to filing for bankruptcy, it is critical that you go over this list, so that you know if you can expect any of your most valuable possessions to be seized. Without reading the list, you may be shocked at which possessions can be taken from you.
It is in your best interest to be abreast of your rights in petitions for bankruptcy. Do not take debt collectors at their word when they tell you that a specific debt can’t be discharged through bankruptcy. However, there are few debts that cannot be eliminated, like student loans and child support payments. If a debt collector tells you this false information, seek the advice of your bankruptcy attorney. You may also want to report the bill collector to the attorney general’s office.
Act when the time is right. Timing is important, and that is especially true when filing for bankruptcy. There are times when you should file as soon as you can, but in some other situations it may be best to wait for the worst to be over. Talk with a bankruptcy attorney to find out the ideal timing for filing based on your particular situation.
Every single asset is not necessarily lost when you file for bankruptcy. You will be able to keep personal property. This includes items, such as jewelry, clothes, household furnishings, electronics, etc. Your current state’s laws, deciding between Chapter 7 or 13, and your current financial position will determine just how much you get to keep.
Exercise some care when you pick a lawyer to help you file for bankruptcy. There are a large number of less than credible bankruptcy lawyers out there. Try to get a lawyer that has a lot of experience and one that is properly licensed. By searching online, you can find background information about lawyers along with client ratings and any disciplinary record an attorney may have.
If you have decided that your only option is filing for personal bankruptcy, you’ll want to know exactly the right steps to take to proceed . The more you know, the easier everything is going to be. Now that you have read the advice shared here with you, you can move forward on the right financial path for you.