≡ Menu

When You Need To File For Personal Bankrupcy

Don’t use credit cards to pay your taxes if you’re going to file bankruptcy. In most states, this debt won’t be discharged, and you could end up owing the IRS a whole lot more. 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.

TIP! Ask yourself if filing for bankruptcy is the right thing to do. Avail yourself of other options, including consumer credit counseling, if they are appropriate for your situation.

Learning more about the process of bankruptcy is, sadly, something that a lot more people have to do today. Many people can thank the economy for that! Before you file for personal bankruptcy, educate yourself about the subject, so you make the right decisions. Find out more in this article.

Don’t be afraid to remind your lawyer about important aspects of your case. Don’t assume that he’ll remember something from a month ago; tell him again. Ultimately, this is your bankruptcy and your financial future, so never hesitate to advocate on your behalf.

TIP! Do not attempt to conceal any assets when filing for bankruptcy because you may be penalized when they are discovered. It is important that you are completely transparent, showing everything financial that needs to be known.

Once you file for bankruptcy, you will have a hard time getting loans or credits. If that’s the case, it is beneficial to apply for one or even two secured cards. They offer you the chance to demonstrate the seriousness with which you now take your financial obligations. It will take time, but when creditors see a pattern that satisfies their need to see your good faith with payments, you will then be able to apply for unsecured cards.

Don’t pay for the consultation with a lawyer who practices bankruptcy law; ask a lot of questions. Most attorneys offer free consultations, so meet with a number of them before you retain one. Choose an attorney who is experienced, educated and well-versed in bankruptcy laws. There is no need to feel rushed to decide to file after you talk with your bankruptcy lawyer. This will give you extra time to interview several attorneys.

TIP! Speak to a bankruptcy attorney about what new laws may be going into effect before your bankruptcy filing. It can be tough to keep up with them on your own, and because they change often, a bankruptcy attorney can help you keep track for the sake of your filing process.

Find a specialized lawyer if you are thinking about filing for bankruptcy. You might not understand all of the various aspects to filing for bankruptcy. An attorney that specializes in personal bankruptcy, can help guide you and make sure that your filing happens properly.

Most bankruptcy lawyers offer a free consultation, so meet with several before you decide on one. By law, paralegals and assistants can not give legal advice, so be sure that you are meeting with an actual attorney. Interviewing multiple attorneys is a good way to find the best fit.

TIP! Protect your home. Filing for bankruptcy will not always result in losing your home.

Before you decide to declare bankruptcy, make sure that a less-drastic solution isn’t more appropriate. For example, consumer credit counseling programs can help if your debt isn’t too large. You can also talk to creditors and ask them to lower payments, but be sure to get any debt agreements in writing.

Before you file for bankruptcy, make sure you absolutely need to. Perhaps consolidating your existing debt can make it easier to manage. Filing a claim can take a long time and cause much stress. It will also make it tough for you to secure credit after your filing is complete. This is why it is crucial that you explore your other debt relief options first.

Chapter 13

Make sure bankruptcy is truely your only option before filing. Speak with an attorney who specializes in bankruptcy to find out if alternatives, such as a debt repayment plan or a reduction of your interest rates, might be better for you. If you are about to lose your house, talk to your lender about a loan modification. The lender is able to help you in a number of ways, such as reducing interest rates, eliminating late charges, and even lengthening the loan, giving you more time to pay. Remember that creditors desire to get paid and usually debt repayments are often preferable when dealing with bankrupt debtors.

TIP! Before filing for bankruptcy under Chapter 7, make sure that you consider the implications this will have on any of your co-debtor, who are usually family members, close friends or business associates. When filing Chapter 7, you are not longer liable for the debts that you and a co-debtor signed for.

Make sure that you understand the difference between Chapter 13 bankruptcy and Chapter 7 bankruptcy. Every one of your debts will be gone if you decide to go with Chapter 7. You will no longer be liable for any money that you owe to your creditors. Filing Chapter 13 differs by requiring you to agree to a 60 month plan to repay your debts before they are totally eliminated. You have to know what differs between all of the kind of bankruptcy, so you know which is one is ideal for you.

Make sure you are acting at the appropriate time. Timing is very important when it comes to personal bankruptcy filings. There are times when you should file as soon as you can, but in some other situations it may be best to wait for the worst to be over. Speak with a bankruptcy lawyer about when the best time is to file for your specific needs.

TIP! As you are heading towards a bankruptcy filing, don’t be tempted to run up cash advances on your credit cards in the belief they will be erased in the legal proceedings. To do this would be considered fraud.

Before filing bankruptcy consider every available avenue. You may be able to manager gets more easily by consolidating them. Bankruptcy is a long process that can be stressful. Your future credit will be affected by these actions. This is why you must ensure that bankruptcy is the only option left for you.

Do not doddle with whether or not bankruptcy is for you. 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. When you talk to someone professional in a timely manner, you will be able to get advice on what you can do prior to it getting too complicated.

TIP! Choosing a good lawyer is an important step in the process. Many newer lawyers enjoy this kind of law.

Consider filing for Chapter 13 bankruptcy. Chapter 13 bankruptcy is a good choice for people whose unsecured debts amount to lower than $250,000 and who receive a regular income. This will allow you to keep your personal property and real estate and repay your debts via a debt consolidation plan. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. However, if you were to miss a payment, the court would dismiss your case right away.

When you fill out the papers for filing bankruptcy, be sure to list every debt that you want to have eliminated. Any debts omitted from the paperwork will not be covered in the discharge. Double-check the paperwork before you file it. Otherwise, you might be liable for debts that you could have gotten rid of during bankruptcy.

TIP! It may be uncomfortable to address your debts, but honesty is imperative. Lying about your obligations and assets is perhaps the most significant error you can make.

Do not forget to make quality time for friends and family members. Going through bankruptcy is difficult. The long process can leave people stressed out and racked with guilt and shame over having their financial affairs laid out for everyone to see. A lot of folks decide to hide themselves from the world around them until the end of the process. Isolating yourself from your loved ones can lead to feelings of depression. So, it is critical that you keep spending time with the ones you love, regardless of the current financial situation.

Make sure that the attorney you hire is an experienced bankruptcy lawyer. There are a slew of attorneys ready to take your case. You may be tempted to find the least expensive one in your area.

Debt Repayment

Make sure that everything in your bankruptcy petition is completely accurate. Hiding things from the court can get your case dismissed with no option to refile. Always be sure to disclose all assets and income which is relevant to your case. This will make you look good in the court’s eyes, helping you to get a positive ruling.

TIP! If you are considering personal bankruptcy, determine what brought you to this situation. Some people’s personal bankruptcy is caused by sudden emergency medical bills.

Investigate other alternatives before resorting to bankruptcy. Consult with a bankruptcy attorney to see if an interest rate reduction or debt repayment plan is an alternative to filing for bankruptcy. You can apply for a modification of your mortgage if your home is going into foreclosure. Your creditors will be willing to work with you to allow you to pay off your debts. They may be able to take late fees off of your account, cut down your interest, or even extend the loan’s repayment period. After all is said and done, your creditors will still want their money. For this reason, you may wish to investigate debt repayment programs in lieu of bankruptcy programs.

Look for a reputable bankruptcy attorney in your neighborhood. After you have chosen a likely candidate, ask about a free consultation. After finding out whether or not you will receive a free consultation, you can then ensure that all your financial info is correctly gathered before ultimately seeing the lawyer. Your lawyer should be able to advise you on what to do based on your financial situation.

TIP! If you’re planning on filing bankruptcy, be sure that you don’t transfer your assets to another person within 12 months of the date you file. Such an action would be considered an effort to hide valuable assets and might cause your case to be dismissed prematurely.

If you really want to keep your vehicle, speak with your lawyer about possible choices. In many cases, you can reduce your payment by filing a Chapter 7 petition. There are qualifications, such as the loan being high interest and a good work record for this option.

The only way to start improving your credit after bankruptcy is to open a new line of credit. That can be hard with poor credit, but a viable option is a secured credit card. Since you will be facing high interest rates from all credit providers, there is little you can do about the high rates these cards typically charge. You can improve your credit in preparation for future loans and accounts by maintaining a credit line and keeping up with its payments.


If you have a co-debtor, consider the ramifications that filing a Chapter 7 bankruptcy will have. If you choose Chapter 7, you are no longer responsible for joint debts. Your creditors can then come after your co-debtor for full repayment of the debt.


As previously noted, bankruptcy is very common today, particularly because of the current economy. If you want to know that you are doing the right thing when dealing with your bankruptcy be sure to put the information you read in this article to use.

Comments on this entry are closed.