≡ Menu

Tips And Hints On Filing For Personal Bankruptcy

Before making the decision to file for bankruptcy, be sure to do some research and learn all you can about the subject. There are many websites available that offer this information. The United States Check out the Bankruptcy Institute site and do some research about consumer’s rights. The more you know, the better prepared you will be to make the best decisions and ensure that your bankruptcy goes smoothly.

TIP! If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. In many areas of the country, this debt will not be dischargeable, and you could be left owing a significant amount to the IRS.

Unfortunately, the subject of bankruptcy is all too common these days. The general state of the economy is at least partially to blame. However, before selecting this option make sure you know everything you need to know before you head too far down the path. The following tips are going to help clarify some bankruptcy confusion for you.

Ensure that you are providing genuine details when filing a bankruptcy petition, because honesty is the best policy when dealing with bankruptcy. You may be tempted to try to hide income and personal assets from discovery, but doing so often leads to major complications, monetary penalties and the possibility that your case will be thrown out of court.

TIP! 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.

Have a good look around the Internet to see what information is relevant to you regarding bankruptcy. You can learn a lot on the U.S. There is solid advice available from the NACBA, (Consumer Bankruptcy Attorneys’ association) the ABI, (American Bankruptcy Institute) and the United States Department of Justice. The more knowledge you have, the more you are able to make right decisions and find a new future.

Brush up on the latest bankruptcy regulations before you decide whether or not to file. Laws are subject to change, and it’s important that you’re educating yourself about current code only. Your state will have a website to check, or a number you can call, to learn the latest changes in the bankruptcy laws.

TIP! Before declaring bankruptcy, ensure that all other options have been considered. For example, consumer credit counseling services can often help you figure out a workable repayment plan with creditors.

If you are thinking about paying off your tax obligations with a credit card and then filing bankruptcy, think again. Generally speaking, taxes are not a dischargeable debt. The delays caused by this sort of tactic could leave you owing the IRS a great deal in interest and penalties. Remember that if you can discharge the tax you can discharge the debt. So as you can see, in this situation there is no need to use the card when the debt will be discharged when you file for bankruptcy.

Find out more about Chapter 13. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. Filing for this type of debt will ensure that you can hold onto your real estate and personal property, and will let you develop a consolidation plan to pay off your debts. The plan is usually for a term of three to five years, and a discharge will be granted at the end of that term. Remember that if you even miss one payment that’s due under this plan, the court could dismiss the whole case.

Credit History

Keep the concept of shame out of your head if you are contemplating bankruptcy. It is possible for those going through the bankruptcy process to feel unworthy, guilty or ashamed. However, having this feeling about yourself isn’t going to help anybody, and your health could even be compromised. Having the right outlook during a tough financial upheaval is a great attitude in coping with bankruptcy.

TIP! When filing for personal bankruptcy, always supply all of your financial information. If you forget information you run the risk of having your petition delayed, or possibly even dismissed.

Try to make certain you are making the right choice prior to filing your petition. Look into other options, such as consumer credit counseling. Bankruptcy is a serious negative on your credit history so make sure you have no other options before you file. It is important to keep your credit history as positive as possible.

Try to get a referral from a trusted source before choosing an attorney to handle your bankruptcy and make sure they have no issues with the state bar or the better business bureau. A lot of rookie lawyers get their start in bankruptcy law. Before hiring a lawyer, make sure he or she is licensed and experienced. By searching online, you can find background information about lawyers along with client ratings and any disciplinary record an attorney may have.

TIP! Reconsider going through a divorce as it could put you into a rough financial situation. Divorcing will only complicate your financial situation.

After a bankruptcy, you may not be able to receive any credit cards. If you find that to be the situation, consider requesting secured cards. This will allow you to start building a good credit history while minimizing the bank’s risk. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.

It may be uncomfortable to address your debts, but honesty is imperative. Lying about your assets and debts can get you into serious trouble. Not only will it affect your filing, it is illegal. If you lie in the recording of your debts and assets, you may end up in prison for quite some time.

TIP! Make sure accuracy is spot on. Although your attorney will fill out your paperwork for you and file it, remember that the accuracy of the information is your responsibility.

Before filing for bankruptcy, determine whether Chapter 13 or Chapter 7 is appropriate for your financial situation. The Chapter 7 variety can help you eliminate your debts almost entirely. With very few exceptions, the connections between you and your creditors will be severed. With a chapter 13 bankruptcy, a 60 month period of time will be established in which you will repay the as much of your debt as possible. Following the 60 month period of time, the remainder of your debt will be excused. Take the time to learn more about these different options so you can make the best decision possible.

Don’t believe that you’re going to be able to discharge your tax bill. Some people who file pay their taxes with credit cards, then immediately file for bankruptcy on those cards. These taxpayers think they can avoid paying taxes by charging a credit card that will be cancelled once they file for bankruptcy. However, there are already bankruptcy laws in place for this. This will leave you with owed taxes and then credit card interest for it, too.

TIP! Write down the questions that you may have prior to visiting an attorney when it comes to filing for bankruptcy. Every second counts (and costs) when you are speaking to a lawyer.

Your most important concern is to protect your home. Just because you’re going bankrupt doesn’t mean that you also have to be homeless! Depending on if your home’s value has gone down or if it has a second mortgage, you might be able to keep it. If you meet certain criteria, you may be able to retain ownership of your home even after filing for bankruptcy.

Don’t just give your paperwork to your lawyer and not follow up afterward. Your lawyer is an expert on bankruptcy, but remember that you are making a decision that could impact the rest of your life. You cannot depend on your lawyer for everything. You must maintain control of the situation and keep abreast new information.

TIP! If you are a position where you are considering bankruptcy, take a moment to reflect on how your financial situation got this bad. You should not worry about your money managing skills if you owe money because of unplanned medical expenses, but if most of your money has been spent irresponsibly, you need to look for a long-term solution to manage your finances.

There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. Research both types of bankruptcy online, and weigh the positives and negatives each would offer you. Ask your bankruptcy lawyer to clarify anything you don’t understand before making a final decision about which type of bankruptcy to file.

Keep in mind that there is the possibility that your bankruptcy could be denied so you should have an alternative plan in mind. Read all the laws pertaining to bankruptcy in your state or consult a qualified attorney to ensure that you are aware of all possible outcomes.

TIP! When deciding to file bankruptcy, do not feel ashamed of your situation. It is common for people to feel as if filing for bankruptcy is a symbol of failure.

As you are no doubt aware, bankruptcy is much talked about in today’s economy. To make certain you are making wise choices about bankruptcy, make certain to use the information in this article.

Educate yourself as much as possible before filing for bankruptcy. Take stock of your debts, and figure out which ones can be discharged through bankruptcy. Some debts are not discharged if they occurred less than 90 days after filing for bankruptcy. Make sure to check the laws that are specific to your state.

Comments on this entry are closed.