Just the thought of bankruptcy creeping up on you, can make you fearful to say the least. A good number of families are having trouble containing their debt and managing their expenses. If you have any fear or apprehension about bankruptcy, the advice found in this article will be of help to you.
Most people that file for bankruptcy owe a lot of money that they could not pay off. If this is happening to you, then learn about the laws where you live. Each state has its own set of rules regarding bankruptcy. Your home and other major assets may be protected in your state, while they are vulnerable in other states. It is important to understand the laws in your state before filing for bankruptcy.
Don’t think that loading up your credit card with tax debt and then filing for bankruptcy is an answer either. In many areas of the country, this debt will not be dischargeable, and you could be left owing a significant amount to the IRS. In most cases, you can use the adage that “a dischargeable tax is a dischargeable debt.” So, in short, do not use your credit cards to pay off debts right before you file for bankruptcy.
It is essential that you are honest and forthright in the documentation you provide for your bankruptcy filings. To avoid problems, penalties and future re-filing bans, resist the urge to hide documentation or assets.
Getting unsecured credit post-bankruptcy will likely be difficult. If you are in this situation, applying for a secured card may be the answer. This will show other people that you’re serious when it comes to having your credit record in order. Once creditors see that you are making an effort to restore your credit, they may allow you to get an unsecured card in the future.
Don’t try to hide anything if you are filing for bankruptcy, as this will hurt you in the long run. Your bankruptcy lawyer has to know every detail of your finances, whether bad or good. Do not hold back anything, and form a sound plan to make peace with your reality.
Never pay to have a consultation with a lawyer, and ask a lot of questions. Most lawyers offer free consultations, so consult with a few before settling on one. Only choose a lawyer if you feel like your questions were answered. You don’t need to decide what to do right away. Be sure to talk with a number of lawyers, and compare the information you receive.
Determine if bankruptcy is necessary. You might be better off consolidating your debt or availing yourself of some other remedy. Going through a bankruptcy is a long and stressful process. Remember that your credit will be affected by the mark of personal bankruptcy for a long time. This is why you must ensure that bankruptcy is the only option left for you.
You could see about filing for Chapter 13 personal bankruptcy. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. You can secure your home under Chapter 13 and pay your debts with a payment plan. This plan usually lasts from 3 to 5 years, after which, you will be discharged from all unsecured debt. Remember, though, that if you fail to make even one payment, the case will be thrown out and you’ll be right back where you started.
Speak with your attorney about ways you can keep your car. A lot of the time, your payments may be lowered due to Chapter 7 bankruptcy. In order for this to succeed, you must have bought your car in excess of 910 days before filing, have a higher interest loan for it as well as a consistent work history.
Bankruptcy is a hard thing to experience and it could create both emotional and mental stress. By hiring a competent attorney, you can alleviate some of that stress. Be sure that you consider more than the expense when you choose a lawyer. The most expensive attorneys are not necessarily the best ones. Speak with trusted people, check the BBB and take advantage of the free bankruptcy attorney consultations. You might be able to view a court hearing. You might be able to watch how your prospective attorney handles the case.
Don’t wait to file for bankruptcy. It is all too common for people to hope that their financial difficulties will disappear if they don’t give them any attention. If debts are not dealt with quickly, things can quickly get out of control. Not only will you be faced with late fees and interest, but you may also be faced with a wage garnishment or foreclosure if you ignore your financial woes. Speak with a bankruptcy lawyer as soon as you become aware that you cannot handle your debts.
Before you file, make the choice to be fiscally reliable. Avoid running up current debts or taking on new debt just before filing for bankruptcy. In the course of a personal bankruptcy filing, your creditors and the court will examine your credit history right up to the filing date. It is important to show that you are committed to acting in a responsible manner going forward.
Those who fear bankruptcy have a good reason to do so: It can be a downright scary experience! You may have lived in fear of it before, but you no longer have to now, thanks to this article. You can improve your life and safeguard your family by following the personal bankruptcy advice presented here.