Just thinking of filing for bankruptcy is more than enough to strike substantial fear into anyone’s heart. A good number of families are having trouble containing their debt and not being able to support your family can be real frightening.If this scares you, or if you are worried about it happening, the information in this article will be useful for you.
A lot of people find themselves needing to file bankruptcy when they are unable to pay their bills. If this sounds like you, start familiarizing yourself with your state laws. Different states use different laws when it comes to bankruptcy. In a few states, they see to it that your house is protected. This is not the case when it comes to other states. It is best to become familiar with your state’s laws regarding bankruptcy before you take the steps to file.
Do not use a credit card to pay income taxes and then try to file bankruptcy. In most states, the debt cannot be discharged, and you may still owe money to the IRS. This means using a credit card is not necessary, since bankruptcy will discharge it.
Instead of getting your lawyer from the yellow pages or on the Internet, ask around and get personal recommendations. There are plenty of companies who know how to take advantage of people who seem desperate, so always work with someone that is trustworthy.
Be as honest as you possibly can when filing for bankruptcy; hiding liabilities or assets will only hurt you in the long run. The lawyer representing you when you file needs to have full knowledge of your financial situation. Being honest is both the right thing to do and, moreover, it is required by law.
The Bankruptcy Code lists assets that you can exclude. If you aren’t aware of this, you may be unpleasantly surprised sometime down the road if any of your most valued items are seized.
Don’t pay for an attorney consultation with a lawyer who practices bankruptcy law; ask a lot of questions. Most attorneys offer free consultations, and you should take advantage of the chance to interview multiple practitioners. Only make a lawyer if you feel like your questions were answered. You don’t need to decide what to do not have to give them your decision right after the consultation. You can take as much time for consulting with other lawyers.
Before pulling the trigger on bankruptcy, be sure that other solutions aren’t more appropriate for your case. Those with smaller debts may find use in a program for consumer credit counseling. You can also talk to creditors and ask them to lower payments, but be sure to get any debt agreements in writing.
Stay up to date with any new laws that may affect your bankruptcy filing laws. Bankruptcy law has changed substantially in recent years, so just because you knew the law last year doesn’t mean that the laws will be the same this year. Your state’s website will have the information about these changes.
Chapter 7
Take advantage of free consultations with lawyers and the ability to sift through and find the right one. Be certain that the person you meet with is really a lawyer. Avoid meeting with paralegals or legal assistants because they cannot give you legal advice. Look for an attorney until you find one you feel comfortable with.
Be certain that you know how Chapter 7 and Chapter 13 bankruptcy. Chapter 7 eliminates all outstanding debts. Any debts that you owe to creditors will be dissolved. Chapter 13 bankruptcy allows for a payment plan to eliminate all your debts.
Be certain you talk to the lawyer, not their paralegal or law clerk, since they cannot give legal advice.
If you are making more money than you owe, bankruptcy should not even be an option. Although bankruptcy may feel like a simple method of getting out of your large debt, it leaves a permanent mark on your credit history for up to 10 years.
Consider if Chapter 13 bankruptcy for your filing. If you currently have some income and don’t have more than $250k in debt, Chapter 13 bankruptcy is something you are able to file for. This lasts for three to five years and after this, in which you’ll be discharged from unsecured debt.Keep in mind that even missing one payment can be enough for your case.
Don’t file bankruptcy the income that you can afford to pay your bills. Bankruptcy may seem to be the easy way out, but it is a huge mark on your credit score and remains there for up to 10 years.
You can take out a mortgage or car loan while filing Chapter 13 bankruptcy. However, it won’t be as easy as it may have been to get one prior to the bankruptcy. Your trustee can help you acquire a new loan. Present a planned budget that shows how you can take on the loan payment and stay current. Also, you need to be ready to say why you’re going to need the item.
In order for this to be considered, your car loan must be one with high interest, have a higher interest loan for it as well as a consistent work history.
Make sure that you disclose every bit of financial information on your debts before filing. If the court thinks you are attempting to conceal information, your filing could be rejected. This may include secondary employments, vehicles and loans.
When thinking about filing for bankruptcy, it is best not to waste precious time. Yes, it may be hard to admit the need for help, however, if you try to stall from getting help your situation can only worsen. By consulting a professional, you will be able to get the advice that you need before everything gets too complicated.
Filing for bankruptcy can be a very scary and intimidating experience. You might have been somewhat afraid of it, but today you no longer need to, thanks to the information this article. Use the bankruptcy information in this article to make your financial life yours again.