Anything leading you to going through bankruptcy is not a happy tale, but the life you live after might be. The whole point is to wipe the slate clean and have a new chance at life. Read on for how to make the bankruptcy process be a rebirth instead of financial Armageddon.
Don’t pay tax requirements with your credit cards with the thought of starting the bankruptcy process afterward, without doing your research first. In most states, you will still owe money to the IRS and have to take care of the interest of your credit cards. Generally speaking, debt incurred to pay taxes and the tax bills themselves are treated the same in a bankruptcy. If you live in an area where tax can be discharged through bankruptcy, financing your tax bill is pretty pointless.
Ask those you know if they have an attorney to recommend, instead of finding one on the Internet or in the phone book. Don’t be taken in by some fly-by-night company that exists only to profit from the suffering of others. Check out any lawyer you are considering thoroughly before engaging him or her.
Be honest when filing for bankruptcy, because hiding liabilities or assets can only cause trouble to you. The professional that helps you file for bankruptcy has to have a complete and accurate picture of your financial condition. Do not hold anything in secret and create a strategy on how you will deal with the things you are facing.
Before declaring bankruptcy, ensure that all other options have been considered. For example, consumer credit counseling services can often help you figure out a workable repayment plan with creditors. Negotiating with creditors is another option, but creditors are notorious for “forgetting” these agreements, so get them in writing!
Spend time with friends and family to keep your stress levels to a minimum through the bankruptcy filing process. Undergoing bankruptcy can be a difficult experience. At the end of the process, many people are left with feelings of shame and worthlessness. Many people decide to hide away from the world until the process is over. Washing yourself in self-pity will only make the situation worse and can leave you feeling very depressed. Because of this, it’s vital you keep spending some time with the people you love despite what you are currently going through.
Before declaring bankruptcy, it is important to know your rights. Certain unscrupulous creditors will try to convince you that certain debts can’t be discharged in bankruptcy. Few debts exist that are not covered by bankruptcy, such as student loans or child support. If a collector tells you your debt won’t be discharged in your bankruptcy and you know that it will, report the collector to the attorney general’s office in your state.
Make sure you act at an appropriate time. Proper timing is important, especially when it comes to personal bankruptcy. For some people, filing right away is best, however for others, waiting a while is best. Discuss your specific situation with a bankruptcy lawyer to find out when would be your best time to file.
Refrain from feeling shameful about your bankruptcy. This process is less that glamorous, and it makes most people lose their self-esteem. But, such emotions get you nowhere, and they can cause significant mental issues to emerge. Keeping an optimistic view as you deal with your financial woes is the most productive way of dealing with a bankruptcy.
Be aware of the fact that you may be under a great of stress while you deal with your bankruptcy. To have a reliable and trustworthy guide through the process, find a highly qualified attorney. Don’t allow cost to determine who you hire. The most expensive attorneys are not necessarily the best ones. Speak to those around you at work or social settings, who have dealt with this. Make the most of the BBB and consultations with attorneys to increase your knowledge and decision-making ability. Try to get a referral from a trusted friend or family member.
Do some research about bankruptcy laws before filing for bankruptcy. For instance, somebody cannot transfer assets from a filer’s name up to a year after they file. Moreover, a filer is prohibited from spending or incurring extra debt prior to their bankruptcy filing.
Do not take a large cash advance from credit cards prior to filing, knowing that bankruptcy erases all debts. This is considered fraud, and even after bankruptcy you can be forced to pay all of that money back to the credit card company.
When you have decided that bankruptcy is the right route for you to take, you need to act relatively quickly. It’s hard to admit you need assistance, but the longer you decide to wait, the worse the debt can get. If you talk to a financial professional, they can assess your situation and give you suggestions on what could solve the problem.
The road to personal bankruptcy is a sad and difficult one. The initial process might be difficult and draining, but there’s something special waiting on the other side. Using the advice you have found here, bankruptcy can be the beginning of a new, exciting chapter in your life!