A lot of folks think that filing for bankruptcy is only something losers do, but change their minds quickly when they are directly affected. If you lose your job, your spouse or find yourself overwhelmed with bills, filing for bankruptcy might be the only option left. Follow the advice presented here if this describes your situation.
Do not attempt to pay your taxes with your credit cards and subsequently file for bankruptcy. In most states, this is not dischargeable debt. Therefore, you will end up owing the IRS a lot of money. One thing that you should remember is that if your tax is dischargable, your debt will also be dischargeable. This makes using a credit care irrelevant, since bankruptcy will discharge it.
Never lie about anything in your bankruptcy petition. To avoid problems, penalties and future re-filing bans, resist the urge to hide documentation or assets.
Don’t fear reminding your attorney of any specific details of your case. It is wrong to assume that your lawyer will remember every word you ever utter! Don’t fear speaking up since it affects your case and future.
Prior to putting in the bankruptcy paperwork, determine what assets are protected from seizure. Check the bankruptcy laws in your state to find out if certain items are excluded from your bankruptcy filing. Be well prepared for bankruptcy by reviewing this list. It will tell you whether are not the things you value most are subject to seizure. If you aren’t aware of this, you could lose some assets that you value.
Don’t pay for the consultation with a lawyer who practices bankruptcy law; ask a lot of questions. You can meet with a few lawyers before deciding on one. Most lawyers provide a free initial consultation. You should make a final decision only once all of the questions or concerns are sufficiently attended to. You do not need to make a decision immediately after the consult. Take the time to meet with a number of attorneys.
Speak to a bankruptcy attorney about what new laws may be going into effect before your bankruptcy filing. If you want to file for bankruptcy successfully, it’s important to review the latest applicable laws. They tend to change frequently. Keep up with your current state’s laws and regulations to figure out what steps you should take.
Before filing a bankruptcy claim, make sure that your home is well protected. Filing for bankruptcy does not mean you have to lose your home. Depending on whether the value of your home has decreased or if you have a second mortgage on the home, you may end up keeping it. If this is not the case, find out more about Homestead Exemptions you might qualify for if you meet certain financial requirements.
Learn the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Research both types of bankruptcy online, and weigh the positives and negatives each would offer you. Ask your bankruptcy lawyer to clarify anything you don’t understand before making a final decision about which type of bankruptcy to file.
Be certain that bankruptcy truly is your best option. Many times a consolidation loan will ease your financial struggles. There is not easy process associated with personal bankruptcy. Remember that your credit will be affected by the mark of personal bankruptcy for a long time. Therefore, you need to be sure that you really have no other option than to file for bankruptcy.
Consider Chapter 13 bankruptcy, if you chose to file. Chapter 13 bankruptcy is a good choice for people whose unsecured debts amount to lower than $250,000 and who receive a regular income. You can secure your home under Chapter 13 and pay your debts with a payment plan. This plan usually lasts from 3 to 5 years, after which, you will be discharged from all unsecured debt. However, if you are unable to properly commit to the plan you agree to, your case can be dismissed.
Once your bankruptcy filing is under way, take the time to decompress a little. The process of filing for bankruptcy can make people a nervous wreck. This kind of stress can take a heavy toll on your personal life, especially if you are not making any efforts to adopt a positive attitude. While the process is tough, you are getting a chance to start over.
You can take out a mortgage or car loan while filing Chapter 13 bankruptcy. It’s a bit more difficult, though. You need to speak with your trustee so that you can be approved for a new loan. When meeting with the trustee, bring a budget which shows that you will be able to afford the payment on the loan you are trying to get. They may also want to know why you believe you need the loan.
It is important to not wait for the final minute to petition for bankruptcy. It is quite common for people to linger on hoping that their financial difficulties will somehow resolve; however, this very rarely happens. Debt could become uncontrollable and by not dealing with them properly, your wages could be garnished or you may find your home in foreclosure. When you make the connection that your debt level is too high, contact an attorney that specializes in bankruptcy as soon as possible, to see what can be done.
If you’ve already tried everything you can think of to dig out of your financial mess, it might be time for bankruptcy. If something other than financial irresponsibility has caused your financial problems, there is no need to worry. This article will give you the information that you need to know.