Many people are quick to judge others badly when they have to declare bankruptcy, but change their tune when their debts become untenable. A quick change in an life, like a major medical emergency, can quickly change a life to the point where bankruptcy may be the only way out. If that is your situation, the following article will be of great assistance.
Do not use a credit card to pay income taxes and then file for bankruptcy. Most states do not look at this debt as chargeable, and you could end up owing money to the IRS. 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.
Retirement accounts should be avoided at all costs. While dipping into your savings is likely to be necessary, never completely wipe it out which would only leave you in worse financial shape in the future.
Always be honest and forthright when it comes to your finances.
Before undertaking the bankruptcy process, ensure you have made the correct decision. Alternatives do exist, including consumer credit counseling. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
Don’t avoid telling your lawyer specific details in your case.Don’t assume that the attorney will remember something from a month ago; tell him again. This is your future in their hands, so never be nervous about speaking your mind.
Instead of relying on random selections from the phone book or Internet, try your hardest to find one with a personal recommendation. There are plenty of companies who know how to take advantage of people who seem desperate, so always work with someone that is trustworthy.
When you realize that you probably will file for bankruptcy, do not pay your creditors or try to avoid bankruptcy by spending all of your regular or retirement savings. Unless there is no other choice a retirement account should not be used. Of course you will have to touch some of your savings to get through all of the hearings, but do not put out any money that you do not have to by law.
The Bankruptcy Code has lists of various assets that are exempt during the process. If you fail to do so, you may be unpleasantly surprised sometime down the road if any of your most valued items are seized.
Be certain to speak with an attorney, himself, instead of a paralegal or assistant; those people aren’t allowed to give legal advice.
One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. Don’t hide income or assets from your lawyer or the bankruptcy trustee or you may find yourself in legal trouble.
This stress may lead to something worse like depression, if you fail to adequately address the problem. Life will surely get better; you finish this process.
Chapter 7 Bankruptcy
It’s not uncommon to learn soon after bankruptcy that you are unable to get an unsecured credit card easily. If that is the case, you should try applying for one, or two secured cards. You can exhibit your desire to rebuild your credit this way. Eventually, you could be able to obtain unsecured credit.
If you are moving forward with a Chapter 7 bankruptcy, consider the ramifications that filing a Chapter 7 bankruptcy will have. However, anyone sharing the loan with you may be forced to pay back the entire amount for the amount in full, they will be required to pay the debt.
It is possible to obtain new vehicle and home loans while a Chapter 13 bankruptcy. You will have to see your trustee to gain approval for this new loan. You will need to show them why and prove that you will be able to afford your new loan. You also need to have a good reason why you need the item.
Before you decide to file bankruptcy proceedings, determine which assets will be safe. You can find a listing of the asset types that are excluded from bankruptcy in the Bankruptcy Code. It is important to be aware of this list so you will know what assets are saved. You may find yourself unpleasantly surprised when the things you value the most are taken from you without warning. This is why it is very important the familiarize yourself with this list.
Know your rights that you have as you file for bankruptcy.Some bill collectors will tell you that your debt with them can not be bankrupted. There are very few debts, such as child support or student loan debt, but be sure to know the details when dealing with debt collectors. If you are told by a debt collector that your debts are not dischargeable, get a written proof and send it to the general office of your state’s attorney to report this illegal behavior.
If you have attempted every option open to you to bring your finances under control, but have been unsuccessful, bankruptcy may be the final option. You need not feel guilty about your financial situation if the choices that have put you in it were made by other people. You can find valuable information by reading this article.
Be brutally honest when you file for bankruptcy, as hiding assets or liabilities, will only come back to haunt you. Your bankruptcy lawyer has to know every detail of your finances, whether bad or good. You are in this situation, now help them to give you the best assistance possible to deal with it. You do that by giving full disclosure and holding nothing back.