Many people find that they must file for bankruptcy protection because they have more debt than they can afford to repay. If this is happening to you, then learn about the laws where you live. Bankruptcy laws vary from state to state so it is important to do your research. For example, whether or not you can keep your home, as well as what you need to do to keep it, is different for every state. Do you research about legal ins and outs in your state before you begin the bankruptcy process.
Although bankruptcy causes stress, it can help financially. The negative is that you will have to allow others to delve into your personal financial situation, and be open to it. However, when your bankruptcy is over, you can re-establish your finances and no longer need to tolerate bill collectors. Continue reading to learn what you need to know to make your bankruptcy almost painless.
Rather than checking online, try to get recommendations from friends or family about a suitable bankruptcy attorney. Bankruptcy attracts a lot of fly-by-night firms that take advantage of desperate people, and a word-of-mouth recommendation makes it more likely that your bankruptcy will go smoothly.
Don’t use credit cards to pay your taxes if you’re going to file bankruptcy. In most states, this is not dischargeable debt. Therefore, you will end up owing the IRS a lot of money. Generally speaking if you can discharge the tax, you can discharge the debt. This means using a credit card is not necessary, when it will just be discharged.
If you are seriously thinking of filing bankruptcy, make sure that you contact an attorney. There are a lot of things to do during bankruptcy and that may be hard for you to understand on your own. A specialized bankruptcy lawyer can ensure that you are handling your bankruptcy filing the right way.
Since it is possible to obtain a free consultation from the majority of bankruptcy lawyers, meet with a few of them prior to choosing one. Talk to the lawyer and not his assistant, who may not be legally able to help you. Look for an attorney until you find one you feel comfortable with.
Getting unsecured credit post-bankruptcy will likely be difficult. This being the case, look at secured card options. If you pay what you owe back promptly at all times, you can show that you are taking steps to be responsible about your payments and credit rating. After a while, you may be able to get unsecured credit again.
If you are concerned about keeping your car, check with your attorney about lowering the monthly payment. Filing for Chapter 7 can help to lower your monthly payments on possessions such as your vehicle, helping to ease your financial load. If you meet the criteria specific to your state, it may be a good option to consider.
Before you decide to file bankruptcy proceedings, determine which assets will be safe. Check the bankruptcy laws in your state to find out if certain items are excluded from your bankruptcy filing. Prior to filing for bankruptcy, it is critical that you go over this list, so that you know if you can expect any of your most valuable possessions to be seized. You wouldn’t want to unexpectedly lose any possessions you treasure.
Decide right up front that you are not going to feel embarrassed or ashamed about needing to file bankruptcy. The bankruptcy process can make many people feel ashamed, guilty and unworthy. Continuing to let yourself feel that way can damage your emotional health and does not benefit you in your endeavors to deal with your financial situation. Keep a positive state of mind to deal with your tough financial situation.
You are going to get found out and get in trouble if you don’t disclose all your assets, so be totally honest from the beginning. It is necessary to be open regarding both the positive and negative aspects of your financial life. Don’t hold anything back and formulate a smart strategy to deal with the reality you are facing.
Before you make the final decision to file bankruptcy, consider the other options you have. One option to consider is credit counseling. There are many different non-profit companies that can help you. They can work with the creditors to lower payments and interest. You pay the organization, and they pay creditors for you.
When you do meet with a lawyer make sure that they answer all of your questions and that they do not charge you for consultation alone. Most lawyers offer free consultations, so talk to a few before making your decision. Make a decision when all your concerns and questions have been addressed well by one lawyer in particular. Take your time choosing the right attorney to assist in your bankruptcy. If you’re unsure, don’t hesitate to talk to multiple bankruptcy lawyers.
One way to avoid bankruptcy is to stay married. Many people tend to get divorced and have to immediately file for bankruptcy due to not foreseeing future financial trouble. Reconsidering divorce can be a very smart option.
Talk to a lot of different bankruptcy lawyers; most of them will give you a free consultation. It is important to meet with the actual lawyer, because paralegals or assistants cannot give you legal advice. Searching for the best lawyer will help you located the comfort you need during this time.
Double check the accuracy of your information. It is fine for your attorney to complete the papers for you, but it is ultimately up to you to make sure the information contained is correct. Remember that you are not the attorney’s only client, so you must be an advocate for yourself. Because of this, you should verify that all information is accurate on every piece of paperwork filed on your behalf.
When your income surpasses your bills, you should not be filing bankruptcy. While bankruptcy may seem like an easy way out of having to pay back all of the debt that you owe, it is a stain that will remain on your credit report for seven to ten years.
Once you have decided that bankruptcy is your only option, research the bankruptcy laws for your state and familiarize yourself with the whole process. This is your future and you should acquire as much knowledge as possible while being thoroughly involved in the process, this way you can get the best outcome from this situation.
Talk with your lawyer about getting lower payments for any car you wish to keep. In many cases, Chapter 7 bankruptcy can lower your payments. The vehicle must have been obtained more than 90 days before filing and be a loan with high interest. You must also have consistent work history.
Be candid with your lawyer and include all of your financial information in your court filings. You should include loans from friends and family as well as money owed for credit cards, medical expenses and any other loan companies.
There are positives and negatives when you file bankruptcy. Regardless of your reasons for filing for personal bankruptcy, remember that it is a process that can be extremely helpful if you are well informed. The suggestions you are about to see, will make your bankruptcy easier. You should experience much less stress during the bankruptcy process when you heed this sort of good advice.
Try getting another job. You may be able to avoid bankruptcy by negotiating with your creditors in order to find a workable plan for paying off your debt. If they are able to comply with your request, you may be able to avoid filing for personal bankruptcy.