Bankruptcy Woes? Simplify The Process With This Useful Information
Posted at by PConran on category BankruptcyEven people who have had assets, such as a car, seized for back tax debt can file for bankruptcy. Your credibility with lenders will take a beating, but sometimes bankruptcy is the only thing you can do. The following article will provide some basic information about filing for bankruptcy and its possible consequences.
Never shirk on the truth in your petition for bankruptcy. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
Be as honest as you possibly can when filing for bankruptcy; hiding liabilities or assets will only hurt you in the long run. Whoever provides your legal consultation must be privy to all of your financial information. Keeping secrets or trying to outsmart everyone is not a wise move.
Find a bankruptcy attorney who offers free consultations, and ask lots of questions. It is a good idea to consult several attorney before deciding on one. Only make your decision if all your questions and concerns are adequately addressed. You don’t have to make your decision right after this consultation. This offers you the opportunity to speak with other attorneys.
Many bankruptcy lawyers offer free consultations, so go to several before choosing one. It is important to meet with the actual lawyer, because paralegals or assistants cannot give you legal advice. By meeting with several attorneys through a free consultation you will be able to choose which attorney you feel more comfortable with.
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. With a consistent income source and less than $250k in debt, try filing for Chapter 13. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. This repayment period usually lasts from three to five years. If you make your payments faithfully during that time, any remaining unsecured debt will be eliminated. However, if you miss even one payment, the court will dismiss your entire case.
Your trustee may be able to help you secure an auto loan or get a mortgage even though you have filed Chapter 13. There will, however, be obstacles. You will have to see your trustee and the approval for this new loan. Create a budget and prove that you will be able to afford it. You will also need to explain why it is necessary for you to take out the loan.
Decide right up front that you are not going to feel embarrassed or ashamed about needing to file bankruptcy. Going through the filing process often brings out the worst in people, causing them to feel a variety of negative emotions. Wallowing in these emotions benefits no one, and only serve to harm your own mental health. Keep your mindset positive while you work through financial troubles such as bankruptcy to reduce stress and have an easier time coping.
Make a list of all your debts before filing. Forgetting to add these may cause your petition to be delayed, or even dismissed. It does not matter what you think of your financial situation, put the sum amount either way. When it comes to the types of things you might not be thinking about adding, just think about any automobiles you have, any money under the table you’re making, etc.
Review bankruptcy rules before you file your petition. If you do not file for bankruptcy properly, you might run into a lot of different issues. Small errors could even cause your case to be dismissed. Before you go ahead, devote a little time to research and the topic of personal bankruptcy. This will make things easier in the long run.
In conclusion, the option of bankruptcy is always there. But, filing ought not to be an automatic decision, as it does have serious implications. Don’t sit back and let the process take control of you. Take control of the process by doing your research so that you don’t lose more than you need to.