If you are thinking about filing for bankruptcy, you are probably already overwhelmed at all the things you need to do and all the information you need to provide. However, the good news is that you are laying a strong foundation for your future financial life. Here are a few tips to help you get through your bankruptcy.
If you have to file bankruptcy, get a lawyer to look over your paperwork before you file. Bankruptcy laws can be very complex, and if you do not have a lawyer, you can get yourself in trouble. Not only are there legal issues that you could face, but you could also end up losing property and cash that you think are protected.
Don't use a credit card to pay off your taxes before filing for bankruptcy. In most states, you will still owe money to the IRS and have to take care of the interest of your credit cards. If the tax can be discharged, so can the debt. Therefore, you have no reason for use of a credit card, if the amount is to be discharged in due process of the bankruptcy.
Before you consider filing for bankruptcy, you should make a pre-determination if bankruptcy may be the right choice. First, make a list of all income, including, salary, child support, alimony, rent and any other sources you may have. Then, make a list of your bills. These would include mortgage, rent, car payments, monthly credit card payments, groceries and gas. If your monthly bill total is more than the income you bring in, it may be time to seek the advice of a bankruptcy attorney, who can help you make the final decision.
Know your rights when it comes to filing for personal bankruptcy. The last thing you need now, is a hassle from the legal professional that you hire to represent you. A few years ago, the Bankruptcy Abuse Prevention and Consumer Protection Act was made into law, in order to protect financially strapped consumers from being ripped off. Beware and be informed!
Gambling losses are another thing that must be listed on your application for bankruptcy. Any monies lost twelve months prior to filing must be disclosed. Failure to disclose could cause you to face perjury charges. If you are found guilty, you could face time in jail and dismissal of your petition.
If you have late payments on credit accounts or accounts that have been sent to collections, you are probably already aware of how insistent creditors can be. After you have filed for bankruptcy, you no longer need to endure the threatening and continuous phone calls from creditors and collection agencies. All you must do is refer them to your attorney who will confirm the bankruptcy for them. After visit my web site , it is illegal for creditors to harass you in any way.
Look at all of the options. Although bankruptcy can be highly damaging to your credit score when you file, it may actually help you in the future. It will remain on your credit report for ten years, but if filing for bankruptcy helps you overcome your debt now, it will be better for your credit score than making late credit card and loan payments for the rest of your life.
Bankruptcy laws vary from state to state. Play it safe and hire an attorney that works in your own state to be sure that the correct laws are followed. Some lawyers are better than others, so be sure to select one that is qualified to handle your case. It could make a big difference in how smoothly things go and the end result.
If you are over the age of 55 and filing for bankruptcy, you are not alone. In fact, this age bracket is the most likely to file. Luckily, retirement savings held in retirement accounts and IRAs are not in danger of being depleted in bankruptcy filings under one million dollars.
Be selective. You may have learned that you must continue to pay for auto and home loans, and to stop paying your credit card bills immediately. That money could be put to much better use somewhere else. Continuing payments on these accounts is wasted money. Apply it to the lines of credit that you plan to keep.
Avoid running up your debt limit before you file for bankruptcy. Judges, and creditors look at recent history along with your current situation. A judge can deny some of your debts from being wiped out if, they think you're just taking advantage of the system. Try to show that that you're willing to change your fiscal habits.
Bankruptcy can get expensive, especially since you are considering it because you have no money! There are attorney fees, filing fees and other fees to consider. When interviewing prospective bankruptcy attorneys, try to find one who is willing to set up a payment schedule for his fees. There are some who will do this. Some will require some sort of collateral to guarantee payment. Before you agree to this, be sure the terms are clear and how re-payment will be made so that you don't risk losing something valuable.
File at exactly the right time to maximize the effect of your bankruptcy. Filing at Recommended Studying can make things go much more smoothly. For some people, filing right away is best, however for others, waiting a while is best. Have a chat with a bankruptcy specialist to discover when the ultimate time would be for you to file.
Some lawyers have a phone service creditors can call instead of you. Creditors can receive confirmation that you are indeed filing for bankruptcy protection from them if they give that number a call. You should receive no more calls from them.
Filing a claim doesn't always result in losing possessions. You may be able to keep certain property. This includes items, such as jewelry, clothes, household furnishings, electronics, etc. The personal items that you are allowed to keep will depend on your home state's individual bankruptcy laws, your personal financial situation and the specific bankruptcy that you are filing for.
Keep in mind that you are not the first person that has ever had to file for bankruptcy, and you certainly won't be the last. Many people feel like they are alone in their struggle when going through the bankruptcy process. So, it can be helpful to keep the previous fact in mind.
Do not make the assumption that every dollar of debt will be disscharged in a Chapter 7 case. Secured debt obligations may require you to reaffirm them with the creditor, and other debts may not be dischargeable at all. Child support and alimony, for example, is not affected by Chapter 7.
Now that you have read through the article, hopefully, you realize that there is little reason to be overwhelmed with your bankruptcy proceedings. Make use the information provided in this article and you will be able handle your bankruptcy much easier. Get ready to live a life that is much better than today!