It’s difficult for anyone to file bankruptcy, but sometimes it can be the only option. If you are thinking about filing for bankruptcy, it’s best to be armed with as much information as possible. This article contains information that has been gathered from others who have successfully navigated the bankruptcy process.
Don’t use a credit card to pay off your taxes before filing for bankruptcy. In many parts of the country, you cannot get this debt discharged, and in the end you will be left owing the IRS a big sum of money. If the tax has the ability to be eliminated, the debt can be too. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.
Before you proceed with your personal bankruptcy case, review your decisions to be certain that the choice you are making is the right. You have other choices, including consumer credit counseling. Bankruptcy permanently affects your credit, so avoid filing until you have exhausted all of your other options.
The most important tip a person filing for personal bankruptcy can remember and follow is to be completely transparent in all dealings. You might feel tempted to not declare certain assets in your bankruptcy in order to protect them from forfeiture, but if you’re found out, the process could take longer, or worse, you might be banned from filing for bankruptcy completely.
Don’t avoid telling your lawyer specific details with your case. Don’t assume that they will recall every detail that you go over with them without a friendly reminder. This is your bankruptcy and your future, so never be nervous about speaking your mind.
If possible obtain a personal recommendation for a bankruptcy lawyer instead of randomly choosing one. Don’t allow yourself to be taken advantage of by predatory lawyers just because you are filing for bankruptcy. It is important to find someone trustworthy.
Never give up. You may be able to regain property like electronics, jewelry, or a car if they’ve been repossessed by filing for bankruptcy. If you have been subject to a repossession during the 90 days before your filing, you stand a good change of getting your property back. A lawyer will be able to assist you with filing the paperwork to get the items back.
Be sure to weigh all of your options before deciding to file for personal bankruptcy. If your debts are really not overwhelming, you may find the assistance you need by consulting a consumer credit counselor. You might also be able to negotiate lower payments yourself, but make sure that you get written records of any debt modifications to which you agree.
It’s a good idea to meet with a number of bankruptcy lawyers before settling upon one. The majority of them offer free initial consultations. Talk to the lawyer and not his assistant, who may not be legally able to help you. By meeting with several attorneys through a free consultation you will be able to choose which attorney you feel more comfortable with.
You can take steps to hang onto your house. Losing your home is thought of as common in bankruptcy cases, but it is by no means inevitable. For instance, if your home value has dropped recently, or even if you happen to hold a second mortgage, you may not necessarily lose the home. Check to see if you pass the requirements necessary to file for a homestead exemption.
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. The length of the plan is generally up to five years, and when this is over, you will be free of unsecured debt. Keep in mind that missed payments will trigger dismissal of your case.
Before ultimately deciding whether or not to file for bankruptcy, be sure to weigh the different options available to you. Ask a bankruptcy lawyer if a debt repayment plan or rate reduction would be of benefit. Various loan plans out there can be a lifesaver if you’re facing a foreclosure. The lender can help your financial situation by getting interest rates lowered, dropping late charges, and in some cases will allow you to pay the loan over a longer period of time. Creditors would rather be repaid, however slowly, than have you declare bankruptcy.
Nobody wants to file bankruptcy, but some people cannot avoid it. Now that you’ve come to the end of this piece, you have some ideas about how the process works. You will feel more relaxed about your own path when you learn from people who traveled it before you did.