Helpful Advice For Surviving Your Personal Bankruptcy
Posted at by PConran on category BankruptcyNobody thinks they will experience a bankruptcy filing during their lifetime. People who declare bankruptcy usually have no other options left available. If you find yourself it this situation you can find help with the information contained in this article.
Make sure that you understand everything you can about personal bankruptcy by visiting websites that offer information. The United States Justice Department, the ABI (American Bankruptcy Institute), as well as the NABCA (National Assoc. Consumer Bankruptcy Attorneys) are excellent sources of information. The more you know, the more you’ll knwo that you’ve made a wise decision and the you’re making sure your bankruptcy goes as smooth as possible.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. In many parts of the country, you cannot get this debt discharged, and in the end you will be left owing the IRS a big sum of money. The rule here is that if you can get the tax discharged then you can get the debt discharged. This makes using a credit care irrelevant, since bankruptcy will discharge it.
Make sure you’ve exhausted all other options prior to declaring bankruptcy. Look into credit counseling to see if it could help you work out of your debt without bankruptcy. Bankruptcy permanently affects your credit, so avoid filing until you have exhausted all of your other options.
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. You must avoid the temptation to conceal any valuables, money or other assets from the courts. If they find that you have lied, you may be faced with fines, penalties or the inability to file in the future.
It is important to list all your assets and liabilities during the bankruptcy proceeding. Failure to do so will only cause you problems in the end. Penalties may include fines, imprisonment or denial of the filing. Don’t withhold information, and create a smart way of coping with the reality of the situation.
Be sure your home is well protected. You do not have to lose your home in the process of a bankruptcy. Check your home’s current value to see if it has gained equity and get your first and second mortgage papers together. You could also check out the homestead exemption. This lets you continue living in your house, depending on whether you meet certain financial requirements.
If you’re unsure, then you need to learn what a Chapter 7 bankruptcy can do for you, as opposed to what Chapter 13 does. Get a good grasp of the pluses and minuses each type of filing involves by researching both of them extensively. Ask your bankruptcy lawyer to clarify anything you don’t understand before making a final decision about which type of bankruptcy to file.
Don’t automatically assume that bankruptcy is your only option. Consult with a bankruptcy attorney to see if an interest rate reduction or debt repayment plan is an alternative to filing for bankruptcy. Look into loan modification plans if you need to deal with an imminent foreclosure. Sometimes your lender will work with you to help pay off your debt by giving you a lower interest rate, forgiving late fees, or extending the time period of your loan. Most creditors will be willing to work out an option to avoid not getting paid at all.
Once you determine that claiming personal bankruptcy is something that you must do, you will need all the advice that you can get. The process is anything but simple, and information will become your best friend during this difficult time. The above article has provided a lot of this knowledge so that you’re able to deal with your finances with less stress.