Bankruptcy is both a stressor and a relief. On one hand, having people go through all of your personal financial information can be formidable. However, once the bankruptcy gets discharged, you can begin to create a better financial situation while all those harassing bill collector phone calls stop. You can make the bankruptcy process easier on yourself by keeping the following tips in mind.
You should check with the personal bankruptcy resources available online to educate yourself thoroughly before you begin the process. The United States Department of Justice, NACBA, and American Bankruptcy Institute websites are all great places to go for up-to-date information. The more you know, the better prepared you will be to make the best decisions and ensure that your bankruptcy goes smoothly.
Don’t use a credit card to pay off your taxes before filing for bankruptcy. In most states, this debt won’t be discharged, and you could end up owing the IRS a whole lot more. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. So as you can see, in this situation there is no need to use the card when the debt will be discharged when you file for bankruptcy.
Don’t be afraid to remind your lawyer about important aspects of your case. Lawyers are people too, and sometimes they forget important information and need to be reminded. It’s your financial future that is in his hands; don’t hesitate to speak up.
Look for a bankruptcy lawyer that comes from a personal recommendation instead of someone random on the Internet or in the yellow pages. 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.
Never give up. Certain property cannot be repossessed while you are in the process of filing for bankruptcy so be sure to learn about the laws in your state. There is a chance that you can get back your property if it has been less than ninety days since repossession. Consult with a lawyer who is able to assist you in the filing of your petition.
Be sure you know how Chapter 7 and Chapter 13 differ. The Chapter 7 variety can help you eliminate your debts almost entirely. You will be removed from any contracts you have with your creditors. With a chapter 13 bankruptcy, a 60 month period of time will be established in which you will repay the as much of your debt as possible. Following the 60 month period of time, the remainder of your debt will be excused. It’s imperative that you know the differences among the various categories of bankruptcy so that you are able to choose the wisest one for you.
There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. Take time to research this online and see the pros and cons for filing each one. Do not hesitate to have your lawyer explain any details that seem difficult to grasp. This will help ensure you make the right choice when filing.
Do not forget to make quality time for friends and family members. Going through bankruptcy is a lot of stress. This long and stressful process can leave a person feeling guilt ridden, unworthy and ashamed. There are a number of people who wish to go into seclusion while undergoing the process of personal bankruptcy. On the other hand, isolation of a self-imposed nature can only worsen your feelings, opening the door to mental depression to join your financial depression. Therefore, meet this challenge head on and surround yourself with caring family members so you can get through this difficult financial situation.
Bankruptcy has several pros and cons. No matter why or what put you in this situation, the best thing you can do right now is educate yourself on the bankruptcy process. The tips contained in this article will make filing for bankruptcy easier to handle. Use these tips to empower yourself before, during and after your bankruptcy.