When in a financial low, you make wonder if bankruptcy is the best choice. Know you are not the only one. Lots of people all over the world have used bankruptcy as a means to get themselves out of a troubled financial situation. This article will give you helpful tips to make sure your bankruptcy goes smoothly.
Most people end up filing for personal bankruptcy because they owe more than they make. If this sounds familiar, you should read up on the bankruptcy laws in your state. When it comes to bankruptcy, states have varying laws. For instance, your home might be protected in some states while you might lose it in others. Become acquainted with local bankruptcy laws before filing.
Do not pay your taxes with credit cards that will be canceled when you file for bankruptcy. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. Should the tax be dischargeable, the debt is often dischargeable as well. Because of this, transferring the debt to your credit card is pointless.
Be sure to bring anything up repeatedly if you are unsure if your lawyer is focusing on it. You should not take for granted that your lawyer will remember every important detail that you have have told him earlier without a reminder. Remember that you’re the boss. You’re paying your lawyer, so you should not be afraid to have your say. After all, the quality of your life hangs in the balance.
If possible obtain a personal recommendation for a bankruptcy lawyer instead of randomly choosing one. You want your bankruptcy to go smoothly, and the Internet is rife with fly-by-night companies whose only goal is to prey upon the financially desperate.
Consider other alternatives before filing for bankruptcy. For example, consumer credit counseling services can often help you figure out a workable repayment plan with creditors. You may also find success in negotiating lower payment arrangements yourself, but be certain to get any arrangements with creditors in writing.
Take steps to ensure your home is protected. You don’t have to lose your home just because you are filing for bankruptcy. If your home value has gone down, or if there’s a second mortgage, you might be able to keep it. Otherwise, look into the homestead exemption which may allow you to stay in your home if you meet financial threshold requirements.
Do not forget to make quality time for friends and family members. The process for bankruptcy can be hard. At the end of the process, many people are left with feelings of shame and worthlessness. Some people do not even want to speak with others until the bankruptcy is official. This isn’t true though because when you isolate yourself you will just start to feel worse and may become depressed. Time spent with people who care about you can give you new perspective on your financial situation.
If you are making more money than you owe, bankruptcy should not even be an option. The cost to your credit history far outweighs the simplicity of the easy-out bankruptcy. This is a hard pill to swallow for many.
Long before you file any paperwork dealing with bankruptcy, your first step should be learning the rules and the process. Your case may be rife with issues due to pitfalls inherent in codes regarding personal bankruptcy. If you do not know bankruptcy law, your bankruptcy case could be dismissed. Prior to filing any papers, learn about your rights and responsibilities when filing for personal bankruptcy. This will make things much easier.
If you are planning to file for bankruptcy in the immediate future, you should refrain from taking out cash advances via your credit cards. This could be considered as fraud, and you may even be forced in paying all of it back to credit card companies.
It’s a good idea to contact the three major credit bureaus and get fresh copies of the credit reports they have on you once your bankruptcy is a few months behind you. Scrutinize the information, and make sure all debts that should be discharged are and that all of your previous credit accounts are closed. If there are discrepancies, correct them immediately in order to you can start repairing your credit.
If after filing for Chapter 7 you aren’t qualified for Homestead Exemption, there is a possibility you can file Chapter 13. Your attorney should be able to tell you whether it is advantageous for you to convert your Chapter 7 filing into a Chapter 13.
Like you have heard, you are not alone in your financial problems. Others just like you are filing for bankruptcy as well. However, you can be better armed by using the tips you have found here. Put the tips you learned into action so that you can ensure your bankruptcy process moves along without trouble.