Facing bankruptcy makes life difficult. When you"re in a bind, financially, you may find that you have limited options. Nonetheless, it is possible for you to continue getting the things you need (e.g. a home loan or an automobile loan) even if you have a very low credit score.
Do not try to get clever by paying your taxes via credit card before you declare bankruptcy in an effort to dodge your tax burden. You will find few states that discharge this kind of debt. You may also wind up owing a lot of money to the IRS. A common rule is that dischargeable tax means dischargeable debt. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.
Research what assets are exempt from seizure before you decide to declare bankruptcy. Certain assets, as listed in the local bankruptcy regulations, are immune from seizure during bankruptcy. You can determine exactly which of your possessions are at risk by consulting this list before you file. It is important to know what types of possessions may be taken away before they actually are seized.
Be as honest as you possibly can when filing for bankruptcy; hiding liabilities or assets will only hurt you in the long run. All of your financial information, be it positive or negative, must be disclosed to those in charge of filing your case. They need to know it all. Do not hold back anything, and form a sound plan to make peace with your reality.
Be persistent in researching information about filing for bankruptcy and consult a qualified personal bankruptcy attorney. Filing for personal bankruptcy may possibly enable you to reclaim your personal property that have been repossessed, like your car, electronics and jewelry items. If it has been fewer than 90 days since you filed for bankruptcy, it is possible for you to get repossessed property back. Consult with a lawyer that can walk you through the filing process.
Familiarize yourself with any new law before you make the final step to filing for bankruptcy. Bankruptcy laws constantly change and it"s crucial you know about them so you the process of filing for bankruptcy goes smoothly. To find out about these changes, you can look at your state"s legislation website or contact their office.
Think carefully about your different options before filing for bankruptcy. For example, if your debt is small, try a type of consumer counseling program. You may also find people will allow you to make lower payments. If that happens, get records of the debt modifications.
Before filing for bankruptcy, determine whether Chapter 13 or Chapter 7 is appropriate for your financial situation. If Chapter 7 is what you file, your debts will get eliminated entirely. Your former ties with creditors will cease to exist. Filing Chapter 13 differs by requiring you to agree to a 60 month plan to repay your debts before they are totally eliminated. Both options have advantages and drawbacks, so do your research before deciding.
Meet with a few attorneys who offer free consultations before hiring one. It is important to meet with the actual attorney, not the attorney"s assistant or paralegal; those people are not permitted to give legal advice Be sure to check out a number of lawyers so that you will find one who is just right for you.
Protect your house. Losing your home is thought of as common in bankruptcy cases, but it is by no means inevitable. It is entirely possible that you will be able to keep your home. This is dependent upon the your home"s value and whether or not you have taken a second mortgage. There are other options such as a homestead exemption which offers you a chance to remain in your home, depending on whether or not you meed certain financial conditions.
Consider Chapter 13 bankruptcy for your filing. With a regular income and unsecured debt below $250,000, Chapter 13 is probably best for you. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. This repayment period usually lasts from three to five years. If you make your payments faithfully during that time, any remaining unsecured debt will be eliminated. Keep in mind that missed payments will trigger dismissal of your case.
While going through this process, spend more time with friends and family. Going through bankruptcy is difficult. It is long, full of stress and leaves individuals having feelings of shame and guilt. Many people decide to hide away from the world until the process is over. However, this isolation will just make you feel worse, and it could cause you to be depressed. Make it a point to catch yourself if you feel yourself pulling away from others. Tell others that you would like to do some enjoyable things together while you go through bankruptcy process, then do it.
Include your entire financial information when you file for bankruptcy. If you forget information you run the risk of having your petition delayed, or possibly even dismissed. It is better to have something on there that you are unsure about, rather than not include it at all and risk a dismissal. Anything, like a job on the side, assets, like cars, and any outstanding loans should be included.
No matter if you"ve filed for bankruptcy, this will not forever limit your life. By becoming more of a financially responsible individual, creditors will get the picture that you"re trying to dig yourself out of a hole. Save as much as you can and you will see the difference when you walk in for a new loan for a car or a home.