When a person needs to file for personal bankruptcy, it is not ever a happy moment. Not only are there a host of unpleasant things that will take place, it is often shameful to tell people about your monetary situation. Don’t give into it and be sure to use this advice to figure out what you need to know to avoid bankruptcy.
One of the most important things to remember when filing for bankruptcy is to be honest and truthful every step of the way. Do not try to shield some assets or income from your creditors. This can get you in serious trouble and prevent your bankruptcy petition altogether.
Always remind your lawyer of specifics that are important to your case. Don’t just assume they already know and that they have these important details committed to memory or written down. Speak up, because it is your future on the line.
After filing for bankruptcy, you could have trouble acquiring unsecured credit. If you find that to be the situation, consider requesting secured cards. Using a secured card not only helps to rebuild your credit, but it also keeps you from going more in debt with credit card bills. Unsecured credit may be offered to you quicker than you think after doing so.
Before you file, make sure you understand current bankruptcy laws. Bankruptcy laws are always changing, and you need to be aware of any changes so your bankruptcy can be properly filed. All of these changes will be addressed on the state’s legislative site. You can also contact them directly by phone or office visit.
Make certain that you comprehend the differences between Chapters 7 and 13. Chapter 7 bankruptcy is intended to wipe out all outstanding debts. Your former ties with creditors will cease to exist. But, with Chapter 13, you will be in repayment plan for about 5 years prior to any debts you have being totally dissolved. Take the time to learn more about these different options so you can make the best decision possible.
It is important to protect your home when filing bankruptcy. Filing bankruptcy does not necessarily mean that you will lose your house. Depending on certain conditions, you may very well end up being able to keep your home. Check to see if you pass the requirements necessary to file for a homestead exemption.
Consider if Chapter 13 bankruptcy is an option. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. You can secure your home under Chapter 13 and pay your debts with a payment plan. Typically, this goes on for roughly three to five years, and once this time has expired, your unsecured debt is eliminated. Bear in mind that if you miss a single payment that is due under your plan, the entire case will be dismissed by the Court.
Make sure you understand your rights as you file for bankruptcy. Don’t take a debt collectors word for it simply because they tell you that you can’t have many or all of your debts erased by bankruptcy. What you can’t file on is very small, like student loans or child support payments. If you are unsure about specific types of debt, check the bankruptcy laws in your state or consult an attorney.
Make sure you are acting at the appropriate time. When it comes to filing for bankruptcy, your timing is important. In some cases, it is better to file immediately, while other situations benefit from trying to get certain finances in better shape before filing. Discuss the strategic timing of your bankruptcy with your attorney.
Prior to filing, it is important that you know all about bankruptcy laws. For instance, somebody cannot transfer assets from a filer’s name up to a year after they file. Not only that, but the filer cannot lawfully accrue additional debt just prior to filing.
Take a look at all of your financial options before filing for personal bankruptcy. Think about seeing a credit counselor. Many different non-profit entities exist that can assist you without charging you any fees. They’ll talk to creditors and strive to get both your payments and interest rates lowered. Often, they make the payments to your creditors, and you make your payment to them.
Never take big cash advances from the credit cards that you own prior to filing for bankruptcy, even though you know that the debt will be erased. This fraudulent practice is a demonstration of bad faith. Debts you incur this way will likely not be discharged in a bankruptcy, and you will still have to repay them.
Avoid making payment that might interfere with your filing. You may find that bankruptcy law prohibits you from paying back some types of creditors for 90 days before you file, and a year for family members. Find out more about legal requirements before making your decision.
You need to start getting responsible with your money even before you file for bankruptcy. The period before your filing is not the time to run up additional debts. Judges as well as creditors will consider you current and past history when they’re adjudicating personal bankruptcy. Even though you may have found yourself in a bind, you want to show them that you are trying to make serious efforts to stabilize your finances.
Bankruptcy is something you file for after considering all your other options. By using this article you will be well on your way to avoiding bankruptcy. Use the information in this article to change your financial future and never have to worry about credit again.