Filing for bankruptcy is not a simple process. Bankruptcies come in different types; what you choose is subject to your financial situation and the kind of debts that you have. Prior to filing your petition, you really need to gain an understanding of how personal bankruptcies work. This article has information that can help you.
It is simple math; when you owe more than you are able to pay off, a bankruptcy is the likely solution. If you’re in this situation, learn about the laws where you live. There are greatly varying laws concerning bankruptcy, so it is important to make sure you are getting the correct information. Your home is safe in some states, but in others it’s not. Do you research about legal ins and outs in your state before you begin the bankruptcy process.
Be certain to gain a thorough understanding of personal bankruptcy by using online resources. You can learn a lot on the U.S. Some valuable resources include the U.S. Dept of Justice and American Bankruptcy Institute. The more you know, the better prepared you will be to make the best decisions and ensure that your bankruptcy goes smoothly.
Do not consider paying off tax debt with credit cards and filing for bankruptcy afterward. It won’t work. Generally speaking, taxes are not a dischargeable debt. The delays caused by this sort of tactic could leave you owing the IRS a great deal in interest and penalties. If the tax can be discharged, so can the debt. Therefore, you should not pull your credit card out for purchases if it is just going to be discharged during the bankruptcy.
Credit History
Before undertaking the bankruptcy process, ensure you have made the correct decision. You have better options. For example, you could try credit counseling. Bankruptcy leaves a permanent mark on your credit history, so before you take such a large step, you want to exhaust all other options so that the future effects on your credit history are as minimal as possible.
Do not hesitate to remind your lawyer of any details regarding your case. Many times a lawyer may forget a key detail; therefore, it is important to remind your lawyer of any key information. Be as open as you can be to make sure your bankruptcy goes as well as possible.
The best way to build your credit up after a bankruptcy is making all your payments on time. If you do, then try applying for a coupe of secured cards. When you do this, it shows your determination to fix your credit history. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
Always protect your house. You do not have to lose your home in the process of a bankruptcy. You could keep your home; it depends on your home’s value or if a second mortgage is on your home. It can be worthwhile to understand the homestead exemption law to see if you qualify to keep living in your home under the financial threshold requirements.
Remember to have fun with your life when you’re done with the filing process initially. Filing for personal bankruptcy can be very stressful for the debtor. Don’t let the process control you in a negative way. You will get through it, and you should make an effort to remember that. Life will get better; you just need to make it through the bankruptcy process.
Speak with an attorney about any fears you have about losing your car. You may even be able to get your monthly payment reduced. Most of the time Chapter 7 bankruptcy will allow your payments to be lowered. But, your car has to have been bought at least 910 days before you file. Also, it must come from a high interest loan and you have to have been consistently working.
Chapter 7
Before you decide to file for Chapter 7 bankruptcy, you should consider what your bankruptcy might have on others, as your family and friends may be affected. When filing for Chapter 7, you won’t be responsible legally for debt signed by co-debtors and yourself. Sadly, this will not be the case for your co debtor. Your creditors may simply turn their attention to your hapless acquaintance.
Before you file, make sure you understand the laws as much as possible. There are often laws prohibiting the transfer of money from the filer for a certain period preceding the bankruptcy filing. Also, you must never incur significant new obligations must prior to filing for bankruptcy.
Do not take a large cash advance from credit cards prior to filing, knowing that bankruptcy erases all debts. Doing so, is a type of fraud that may result in your having to pay back all money advanced from credit card accounts in the months just prior to your bankruptcy.
Every single asset is not necessarily lost when you file for bankruptcy. Most of the time, you retain your personal possessions. You may keep personal items like jewelry, household furnishings, clothes and electronics. This will depend on your state’s laws, the type of bankruptcy you file for, and your financial situation, but you may be able to retain large assets like your home and car.
Now you know that filing for bankruptcy is something to be considered before going through with it. After weighing all of your options, if you conclude that bankruptcy is the best option for your particular situation, be sure to hire a competent attorney. Follow the advice given in this article to get through this rough time and move on to a more secure financial future.
This is a limited-time offer. We are not able to guarantee availability if you wait!
