Personal Bankruptcy Tips To Help You File Like A Pro
Posted at by PConran on category BankruptcyIf the IRS has begun repossessing your assets, bankruptcy could be of help. Bankruptcy can play havoc with your credit, but is often unavoidable. Read this article to learn more about filing bankruptcy and the consequences from doing so.
Be sure you’re doing what’s right before you file for bankruptcy. It is possible to take advantage of other options, like consumer credit counseling. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
Don’t hesitate to give your attorney a heads-up about something she has missed. You should not take for granted that your lawyer will remember every important detail that you have have told him earlier without a reminder. Speak up if something is troubling you, as this is your future we are talking about here.
Determine which of assets are safe from seizure and which are not before filing for personal bankruptcy. 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 aren’t aware of this, you could lose some assets that you value.
Do not attempt to conceal any assets when filing for bankruptcy because you may be penalized when they are discovered. Whoever provides your legal consultation must be privy to all of your financial information. Do not hold back anything, and form a sound plan to make peace with your reality.
See if there is an alternative you can use before declaring bankruptcy. There are numerous programs out there that may assist you with your debt, like a credit counseling program, a nonprofit group, government assistance, etc. Negotiating with creditors is another option, but creditors are notorious for “forgetting” these agreements, so get them in writing!
Consider Chapter 13 bankruptcy for your filing. Chapter 13 bankruptcy is a good choice for people whose unsecured debts amount to lower than $250,000 and who receive a regular income. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. This plan usually lasts from 3 to 5 years, after which, you will be discharged from all unsecured debt. Remember that missing a payment to the plan will result in your case being dismissed.
Know your rights when filing for bankruptcy. Many creditors or bill collectors might tell you your debts cannot be included in a bankruptcy. There are, indeed, some debts that cannot be bankrupted. Among them are student loans, child support and alimony payments. If you know that a debt can definitely be bankrupted, yet the collector still harasses you, file a report with the attorney general in your state.
File when the time is right. Timing is important, and that is especially true when filing for bankruptcy. Sometimes, filing as soon as you can is best, while other times, it is wise to get past the worst problems first. Speak with an attorney who specializes in bankruptcy to figure when is the best time to file, according to your situation.
Consider all of your options before filing for bankruptcy. Credit counseling is one option you should consider. There are some good non-profit organizations that could help you. These companies work with creditors to reduce your payments and interest. Once you pay them, they make the payments to your creditors.
Be mindful of paying off outstanding obligations before you file a bankruptcy petition. Bankruptcy laws generally prohibit certain creditors from being paid back 90 days before filing and family can be around a year! Do your research and figure out the laws for you.
As mentioned earlier, there is always the opportunity to file for personal bankruptcy. Given that fact, it should be your last resort due to the consequences involved. Learn all that you can about bankruptcy before you file. That way, you will be prepared to make the best decision for a happy financial future.