The economy remains in very bad shape right now. The result of a tough economy leads to people are losing their jobs and falling into debt. Debts can lead to bankruptcy, an outcome nobody ever wants.
When people owe more than what can pay, they have the option of filing for bankruptcy. If you are in this position, you need to be familiar with the laws in your area. You will find that each state has their own bankruptcy laws. Your house is safe in certain states; however, in other states, it isn’t. It is best to become familiar with your state’s laws regarding bankruptcy before you take the steps to file.
If you’re in this position, you should read up on the bankruptcy laws in your state. Each state has their own set of rules regarding bankruptcy. Your home and other major assets may be protected in your state, but in others it’s not. You should be familiar with the laws before filing for bankruptcy.
You should check with the personal bankruptcy by searching for websites which offer information about it. Department of Justice and National Association for Consumer Bankruptcy Institute are both sites that provide excellent information.
You should check with the personal bankruptcy resources available online to educate yourself thoroughly before you begin the process. The United States Justice Department, the ABI (American Bankruptcy Institute), as well as the NABCA (National Assoc. Consumer Bankruptcy Attorneys) are excellent sources of information. You need to spend some time gathering valuable information so you can file your bankruptcy with confidence.
Credit Card
Do not use a credit card to pay income taxes and then file bankruptcy. In many areas of the country, you cannot get this debt discharged, and you could end up owing the IRS a whole lot more. This means using a credit card is not necessary, since bankruptcy will discharge it.
If you are thinking about paying off your tax obligations with a credit card and then filing bankruptcy, think again. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS. One thing that you should remember is that if your tax is dischargable, your debt will also be dischargeable. So, there is no reason to use your credit card if it will be discharged in the bankruptcy.
Avoid ever touching your retirement accounts whenever possible. If you do have to dig into your savings, make sure that you save some to ensure that you are financially secure in the future.
The person you file for bankruptcy has to have a complete and accurate picture of your finances.
Find out what you exemptions are prior to filing bankruptcy. Check the bankruptcy laws in your state to find out if certain items are excluded from your bankruptcy filing. Make sure that you carefully look over this list prior to filing to discover if your valuable assets will be seized. It is important to know what types of possessions may be taken away before they actually are seized.
Learn of new laws before you file bankruptcy. Bankruptcy law evolves constantly, you need to know what you are getting yourself into. Your state’s website should have the information about these changes.
Before filing bankruptcy ensure that the need is there.It may be that all you really need to do is consolidate some of your debt instead. It is not a quick and easy process of filing for bankruptcy. It will also limit your access to credit in the next few years. This is why you must ensure that bankruptcy is your last resort.
You must be absolutely honest when filing for personal bankruptcy. If you try to hide any of your information, it will eventually surface and cause you problems. Whomever you plan to use should know a lot about the finances that you have, both the good and the bad. Bankruptcy can be a chance to simplify your finances, but any schemes you employ to conceal the truth can ruin that chance for you.
Debt Collectors
Know the rights when filing for bankruptcy. Some bill collectors will try to tell you your debts can’t be bankrupted. There are a few debts that cannot be cleared, such as child support or student loan debt, but be sure to know the details when dealing with debt collectors. If any debt collectors tell you that their debts can’t be bankrupted, report the collector to the attorney general’s office in your state.
Prior to choosing a bankruptcy attorney, seek a free consultation with at least three attorneys. Just be sure that the person you speak with really is the lawyer, rather than a paralegal, since they cannot legally give advice. By shopping lawyers, you will be more likely to find one that makes you comfortable about the process.
Gain an understanding of personal bankruptcy that you can. There are many pitfalls when it comes to the code pertaining to personal bankruptcy laws that could trip up your case. Some mistakes can even lead to having your case being dismissed. Do the proper research as possible about bankruptcy before you file. This will make the long run.
Be cautious if you pay your debts before you file a personal bankruptcy. The laws surrounding bankruptcy often prohibit paying back certain creditors up to ninety days prior to filing, and friends and family for up to one year. Read up on the rules before making financial decisions.
While going through this process, spend more time with friends and family. Going through bankruptcy is a lot of stress. It is often overwhelming, and not quick. Some people may feel embarrassed or feel their self-esteem has taken a beating from it. There are a number of people who wish to go into seclusion while undergoing the process of personal bankruptcy. Do not isolate yourself or you will put yourself at risk for depression. Because of this, you need to make sure you spend as much time as you can with your family and friends, even if you are ashamed of your finances.
You should acquire a bankruptcy lawyer if you decide to file for bankruptcy. A bankruptcy attorney will advise you of the process simpler. Your lawyer also knows how to properly file the paperwork and help you have.
No matter how bad things are when you are filing for bankruptcy, make sure you tell the truth about your situation. Lying about your obligations and assets is a huge mistake. You could go to prison for a while if you don’t properly record your assets and debts.
If your paycheck is larger than your debts, avoid filing for bankruptcy. Remember that the record of your personal bankruptcy filing will be discernible on the report of your credit for as many as 10 years. For this reason, bankruptcy filing should not be taken lightly.
Do not delay in filing for personal bankruptcy case. If this is the only option that you could take, it is pointless to wait. Waiting to file may increase your stress levels and will only make the financial situation much worse. This can have many negative effect on your life. It’s better to file now rather than later.
Even the economy is gradually getting better, many people still do not have a job. Even if you do not have a steady income, there are steps you can take to prevent bankruptcy. Hopefully you have figured out some ways to avoid bankruptcy for you or someone you know. Also, try to remember that tomorrow provides you with a fresh start.
See if your attorney can help you lower your payments if you want to keep your vehicle. Lower payments can sometimes be structured into a Chapter 7 solution. Here are the qualifications in regards to your vehicle: you must have bought it nine hundred and ten days or more before filing for personal bankruptcy; your loan must carry high interest; your work history must be steady and solid.