Bankruptcy is both a relief and a stressful situation. The relief is that your phone will stop ringing with harassing phone calls from debt collectors, you will be debt-free and free of harassment from creditors. Here are some simple tips for making bankruptcy go smooth.
Be certain you understand all you can about bankruptcy by researching reputable sites that offer good information. The United States D.O.J., the A.B.I and the N.A.C.B.A. are all useful organizations willing to provide educational material. The more you know, the better equipped you’ll be to make the wise decisions needed for a successful bankruptcy.
Avoid ever touching your retirement funds until you have no other choice. If you have to use a portion of your savings, make sure that you leave enough to sustain you and your family for a couple of months.
Always be honest when it comes to your bankruptcy petition.
Don’t use a credit card to pay off your taxes before filing for bankruptcy. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS. Keep in mind that if the tax debt is eligible to be discharged, then the credit card debt is also dischargeable. It is pointless to use credit cards if they can be discharged.
You may still have trouble receiving any unsecured credit after filing for bankruptcy. If you are in this situation, apply for a secured card or two. This will show other people that you’re serious when it comes to having your credit worthiness. After a while, you will then be able to acquire credit cards that are unsecured.
If you can, this should be a lawyer you focus on.There are way too many people ready to take advantage of financially-strapped individuals, so always work with someone that is trustworthy.
If you are feeling like you are seriously going to have to file for bankruptcy then do not clear out your savings. You shouldn’t dip into your IRA or 401(k) unless there is nothing else you can do. Though you may need to use a bit of your savings, try hard to maintain some of your reserves so that you have some degree of flexibility going forward.
The Bankruptcy Code contains a list of various assets that are excluded from forfeiture to pay off creditors. If you don’t heed that advice, you could have nasty surprises pop up later due to your prized possessions being seized.
Be certain to speak with an attorney, himself, instead of a paralegal or assistant; those people aren’t allowed to give legal advice.
It’s not uncommon to learn soon after bankruptcy that you are unable to get an unsecured credit card easily. If this happens to you, think about applying for a couple of secured credit cards. By doing this, you will be letting people know that you want to fix your credit score. Unsecured credit may be offered to you quicker than you think after doing so.
Filing bankruptcy does not necessarily mean you will end up losing your home. Depending on if your home’s value has gone down or if it has a second mortgage, you may very well end up being able to keep your home. You are still going to want to check out the homestead exemption because it may allow you to keep your home.
Understand the differences between Chapter 7 and a Chapter 13 bankruptcy. Take the time to learn about them extensively, and look at the advantages and disadvantages of each.If you do not understand what you are reading, take the time to go over the specifics with your lawyer before making a decision on which type you will want to file.
Use a personally recommended bankruptcy attorney instead of one found through the Internet or phone books. There are various companies that prey on the financially desperate, so you need to find someone you can trust to ensure the process goes smoothly,
Look at all of your options before filing. Loan modification plans can help you get out of foreclosure. The lender wants their money, so they may be willing to forgive some fees, and in some cases will allow you to pay the loan over a longer period of time. When push comes to shove, creditors want their money, so sometimes it’s best to deal with a repayment plan than with a bankruptcy debtor.
Don’t wait until it is too late to file bankruptcy. It is a big mistake to avoid financial problems, hoping they will go away on their own. It doesn’t take long for debt to become unmanageable, and avoiding the problem will make things worse. As soon as you realize your debts far outweigh your income, immediately get hold of a bankruptcy attorney so that you can talk to him or her about your options.
If you aren’t totally honest about your assets when filing a bankruptcy petition, you could get into serious trouble. Good or bad, you must tell your bankruptcy attorney everything about your financial situation. Don’t hold back information and create a strategy so you can deal with what’s really happening.
Gain all the knowledge of bankruptcy that you can. There are a lot of pitfalls in the bankruptcy laws that could lead to issues with your case. Some mistakes could lead to your case being dismissed. Take the time to research personal bankruptcy before you move forward. Doing so will pave the process a lot easier.
Filing bankruptcy will always have good and bad sides. No matter why you are filing, you must remember that knowledge is the key to help during the process. The advice you have been provided with has probably helped you better understand bankruptcy. Make good use of these tips. You will be glad you did.
Any bankruptcy consultation should be free of charge. Seek free consultations from a handful of lawyers, before deciding which one to hire. Therefore consult with different lawyers and get a feel for them, then decide which one suits your needs You don’t have to make your decision right after this consultation. So, this gives you plenty of time to consult with several attorneys.