It’s not uncommon for people to look down on others who choose bankruptcy, but one day find themselves in the same situation. A change in circumstances, such as divorce or job loss, can make a situation where filing for personal bankruptcy is a necessity. You may find the suggestions in this article very helpful if you are in such a situation.
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. In most states, this is not dischargeable debt. Therefore, you will end up owing the IRS a lot of money. Should the tax be dischargeable, the debt is often dischargeable as well. There isn’t any reason to use a credit card to pay the tax bill since the bill can be discharged anyway.
Always be honest with the information you give about your finances. As long as you are not hiding income or assets from the courts, you can ensure that there are no difficulties with your petition. This will save you from having your petition dismissed and your debts dropped from re-filing.
You may end up losing more than you bargained for when you file a bankruptcy claim, so be sure that you know just which assets may be taken before filing. The Bankruptcy Code lists the kinds of assets which are exempted when it comes to the bankruptcy process. You need to compare this list to the assets you own so that you are not surprised when certain assets are seized. Without reading the list, you may be shocked at which possessions can be taken from you.
Do not despair, as it’s not the end of the world. When you file for bankruptcy you may be allowed to recover property like your car, electronics or jewelry that might have been repossessed. If the items were repossessed less than three months prior to your filing date, you may be able to recover them. Talk to your lawyer to find out how to go about properly filing a petition.
Safeguard your home. Filing for bankruptcy does not mean you have to lose your home. You might be able to keep your home, contingent on certain factors, such as your home decreasing in value or having a second mortgage. If you’re not sure, however, you can always study the particular homestead exemption regulations. You will learn everything you need to know.
Look into all of your options before you choose to file for bankruptcy. There are many recouses available to help you lower your payments and get back on track. If you are about to lose your house, talk to your lender about a loan modification. Your lender can help you get current on your loan by offering you one of a number of modifications, such as getting rid of late charges, lowering interest rates, or extending the length of the loan. When all is said and done, the creditors want their money, so sometimes it’s best to deal with a repayment plan than with a bankruptcy debtor.
Forget about detrimental terms, such as shame, when you are filing for personal bankruptcy. It is possible for those going through the bankruptcy process to feel unworthy, guilty or ashamed. Do not let these negative feelings influence your decision. Having the right outlook during a tough financial upheaval is a great attitude in coping with bankruptcy.
Bankruptcy is a difficult time that always leads to lots of stress. Engage a competent lawyer in order to avoid excess stress and keep everything on track. Don’t make your choice to retain a particular lawyer simply because they are the cheapest. It is not necessary to engage the lawyer who charges the highest fees; all you need is a lawyer of high quality. Ask people who have used a bankruptcy lawyer for referrals, look them up at your local Better Business Bureau, then schedule free consultations in order to interview them. You might even go to a bankruptcy hearing to watch how a lawyer presents his case.
Before filing for bankruptcy, you must be educated on the specifics of all bankruptcy laws. For instance, you are not allowed to move assets from your name to someone else’s for a year before you file. Also, you must never incur significant new obligations must prior to filing for bankruptcy.
Research your state’s bankruptcy laws before filing your petition. There are some clauses within bankruptcy that could cause you upsets. If the regulations are not followed, your case may be subject to a dismissal order. This is exactly why it’s imperative that you take the time necessary in order to research what you can about bankruptcy. If you take care of this now, you can avoid problems going forward.
After filing for bankruptcy, many individuals vow they will avoid the use of credit cards and all forms of credit. However, building a good credit history requires that you occasionally use credit. Good credit is needed to make major purchases, such as those for homes and automobiles. However, if you don’t use credit, you will be unable to establish a good credit history, which is necessary in order to make those purchases. Keep it simple with one card and take a slow approach to rebuilding.
If you’ve already tried everything you can think of to dig out of your financial mess, it might be time for bankruptcy. Don’t carry the weight of the world on your shoulders. If the circumstances that brought you here were not within your ability to control, let go of the stress and guilt associated with them. You will find that this article contains very valuable information.