When a person needs to file for personal bankruptcy, it is not ever a happy moment. Bankruptcy can be ugly, embarrassing and a tough thing to talk about. Don’t let bankruptcy overwhelm you; the article below can help.
Don’t use credit cards to pay your taxes if you’re going to file bankruptcy. Most of the time, you cannot discharge this debt. As a result, you will owe the IRS a lot of money. If the tax can be discharged, so can the debt. Therefore, you have no reason for use of a credit card, if the amount is to be discharged in due process of the bankruptcy.
Make sure you keep reminding your attorney about any important details in your case. 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.
Ask those you know if they have an attorney to recommend, instead of finding one on the Internet or in the phone book. There are lawyers out there who will take advantage of your financial state and not deal honestly with you. Make sure your filing process goes as well as possible by finding a trustworthy lawyer.
Make sure you are completely honest when filing for bankruptcy. Hiding your assets is never wise. It is important that you are completely transparent, showing everything financial that needs to be known. Be completely honest in your paperwork to avoid a situation that may end in severe punishment.
Be sure to weigh all of your options before deciding to file for personal bankruptcy. For example, consumer credit counseling services can often help you figure out a workable repayment plan with creditors. You can also talk to creditors and ask them to lower payments, but be sure to get any debt agreements in writing.
Do not forget to enjoy life a little once you get through the initial filing process. Many people who undergo this process become way too stressed out. 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. After you have finished filing for personal bankruptcy, your life will improve.
Carefully consider filing for bankruptcy on loans that have a co-signer, especially if that co-signer is a business associate, close friend or relative. Once you file for Chapter 7 bankruptcy protection, you no longer have legal responsibility for debts that you and any co-signers originally agreed to. However, creditors can demand co-debtors pay the amount in full.
A great tip to remember if you have filed for Chapter 13 is that you will still be able to receive a loan, so you shouldn’t refrain from trying. It is a little more difficult, though. Your trustee must approve any new loans. To show that you are responsible and prepared for the undertaking of a new loan, flesh out a full budget. Also, be sure you can provide an explanation as to why this purchase is necessary.
If you are filing for bankruptcy, it is imperative that you have a good understanding of your rights. Many creditors or bill collectors might tell you your debts cannot be included in a bankruptcy. However, there are few debts that cannot be eliminated, like student loans and child support payments. If a collector tries to convince you that some other type of debt, such as a credit card, is non-discharagable, get the company’s information and send a report to your state attorney general’s office.
Prior to filing, it is important that you know all about bankruptcy laws. For example, it is against the law to transfer any assets from the filer to another for a year before filing. Also, it is illegal to load up your credit cards with debt right before filing occurs.
When you are filing for bankruptcy, make sure you list all of the financial information you may have. Forgetting to add these may cause your petition to be delayed, or even dismissed. Even if it’s a small sum, make sure it is listed. Financial information should include all income, assets and loans.
After going through bankruptcy, a lot of people think they are being financially responsible if they shun all forms of credit. That is not a great idea, because using credit builds better credit. If you never use credit, you won’t be able to rebuild the good credit that you will need to make future purchases. One credit card is adequate to begin rebuilding your credit rating.
Filing for bankruptcy does not mean that you lose all of your assets. Your personal items will stay with you. In other words, your clothes, your television, your computer, your furniture, your jewelry and other household items are safe. Depending on your financial situation and what state you live in, you might be able to keep property such as your home and car, or even recover property that has been recently repossessed.
If you think you have to file a petition for bankruptcy, get a lawyer who specializes in bankruptcy. A legal professional can help quell any confusion you have about the process. Attorneys can prepare your documents and help you with any concerns you may have.
Filing a petition for bankruptcy should be a last resort. Use the tips you just read to make the best decision possible. Apply the tips from this article to make positive changes to your life and financial situation.