Useful Tips In Personal Bankruptcy You Need To Know
Posted at by PConran on category BankruptcyIf you have been put into the position of needing to file for bankruptcy, you are likely not to be very happy about it, but it does not lead to your life ending. With a clean slate, it is possible to start over both financially and personally. Read this article to find out how to use bankruptcy for a chance at financial rebirth.
If you are thinking about paying off your tax obligations with a credit card and then filing bankruptcy, think again. The fact is that the credit card debt will be ineligible for discharge, and your tax debt may increase. Should the tax be dischargeable, the debt is often dischargeable as well. Thus, it doesn’t make sense to use a credit card when it is going to be discharged when you file for bankruptcy.
Don’t avoid telling your lawyer specific details with your case. Lawyers are people too, and sometimes they forget important information and need to be reminded. Speak up. This is your life, and your future depends on it.
Prior to putting in the bankruptcy paperwork, determine what assets are protected from seizure. The federal statutes covering bankruptcy can tell you exactly which assets are exempt from forfeiture to pay off creditors. You can determine exactly which of your possessions are at risk by consulting this list before you file. If you fail to go over this list, you may be unpleasantly surprised sometime down the road if any of your most valued items are seized.
Spending time with the people you love is something you should do now. Going through a bankruptcy can be an excruciating experience. Not only is the process long, but it can be stressful, and many people feel ashamed when they do it. Some folks tend to stay in the shadows until their case has concluded. However, this isolation will just make you feel worse, and it could cause you to be depressed. Thus, you must keep living your life and socializing with those you love, no matter what is going on with your bankruptcy.
Look into all of your options before you choose to file for bankruptcy. You may qualify for alternatives such as debt repayment plans or interest rate reductions. Ask your bankruptcy attorney about these options. If a foreclosure is on your horizon, look into loan modification plans. Some lenders will make concessions rather than losing the money owed to bankruptcy. These concessions include waiving late fees, lowering interest rates, and changing the loan term. Making arrangements with the creditors to make reasonable payments towards you debt is a much better plan than bankruptcy because the lender simply wants the loan repaid.
Do not forget to enjoy life a little once you get through the initial filing process. So many people become stressed when they file. This stress could morph into clinical depression, if you fail to adequately address the problem. After you have finished filing for personal bankruptcy, your life will improve.
Before you make the decision to file Chapter 7 personal bankruptcy, take time to think about anyone it could affect. When filing for Chapter 7, you won’t be responsible legally for debt signed by co-debtors and yourself. However, anyone sharing the loan with you may be forced to pay back the entire amount for the amount in full, which spell financial disaster for them.
Know your bankruptcy rights. Do not rely on your debtors information about whether or not certain loans can be included in your bankruptcy. Only a small number of debts are not dischargeable, including student loans and child support obligations. If a collector uses this tactic about debt that can, in fact, be discharged through bankruptcy, report the collection agency to the attorney general’s office in your state.
As mentioned, the events that cause bankruptcy are not happy. However, what happens to your life after bankruptcy can have a happy beginning. If you put the ideas you learned in this article into practice, you can write a whole new financial story and live happily ever after.