Sound Advice For Getting Through A Bankruptcy
Posted at by PConran on category BankruptcyThere is hope for a better life after bankruptcy, no matter the unpleasantness that went before. The bankruptcy option was created to give you another chance to live a financially responsible life. Keep reading to see how bankruptcy can actually give you a new lease on life, rather than function as a permanent financial albatross.
Do not use a credit card to manage your tax issues and then try to file bankruptcy. Credit card debt is handled charge by charge during bankruptcy, and in most states, tax debt cannot be discharged through bankruptcy. If the tax can be discharged, so can the debt. Thus, it doesn’t make sense to use a credit card when it is going to be discharged when you file for bankruptcy.
When it soaks in that filing for personal bankruptcy, don’t use all of your retirement funds, or all of your savings to resolve insolvency or pay creditors. Unless there is no other choice a retirement account should not be used. Of course you will have to touch some of your savings to get through all of the hearings, but do not put out any money that you do not have to by law.
The most important tip a person filing for personal bankruptcy can remember and follow is to be completely transparent in all dealings. You might feel tempted to not declare certain assets in your bankruptcy in order to protect them from forfeiture, but if you’re found out, the process could take longer, or worse, you might be banned from filing for bankruptcy completely.
When looking for a lawyer to handle your bankruptcy claim, the best way to go is off of a personal recommendation instead of simply flipping through the phone book. Companies are constantly popping up, claiming to help, yet only seek to profit from your misery. In ensuring that your bankruptcy is as simple as possible, trusting your attorney makes a big difference.
Prior to filing your bankruptcy petition, go over the list of assets that cannot be seized by creditors. The Bankruptcy Code provides a list of all the different kinds of assets that you can exclude. Be well prepared for bankruptcy by reviewing this list. It will tell you whether are not the things you value most are subject to seizure. You may find yourself unpleasantly surprised when the things you value the most are taken from you without warning. This is why it is very important the familiarize yourself with this list.
Before you file, make sure you understand current bankruptcy laws. Make sure to get the most up-to-date information concerning the bankruptcy laws in your state. Your state’s legislative offices or website will have up-to-date information about these changes.
Learn from the mistakes you made that sent you to bankruptcy court. The initial process might be difficult and draining, but there’s something special waiting on the other side. Bankruptcy is not the end; by applying some or all of the tips in this article, you will make the process much smoother and your financial recovery that much faster.