Things You Need To Know Before You File Personal Bankruptcy
Posted at by PConran on category BankruptcyThere are many emotions experienced by those going through personal bankruptcy. Those who find the need to file often worry about how they will be able to pay debts and live their daily life. As you can see, filing for bankruptcy does not mean life is over.
Knowledge is power when you’re considering bankrupcy; there are many websites available to help you. The United States DOJ, along with a number of other bankruptcy institutes and attorneys specializing in bankruptcy can give you invaluable information. By having more knowledge, you can make the right decision, as well as be sure you are ensuring that your personal bankruptcy case goes smoothly.
Do not try to get clever by paying your taxes via credit card before you declare bankruptcy in an effort to dodge your tax burden. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS. Remember that if you can discharge the tax you can discharge the debt. So it does not help you to put the tax bill on your charge card if you know the debt will be discharged anyway.
You might experience trouble with getting unsecured credit after filing for bankruptcy. Look into getting a secured credit card in order to get back on your feet with building credit. They offer you the chance to demonstrate the seriousness with which you now take your financial obligations. After a certain time, you will then be able to acquire credit cards that are unsecured.
Use a personally recommended bankruptcy attorney instead of one found through the Internet or phone books. You want your bankruptcy to go smoothly, and the Internet is rife with fly-by-night companies whose only goal is to prey upon the financially desperate.
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. It’s crucial to read that list before filing to see which of your prized possessions can be seized. If you aren’t aware of this, you could lose some assets that you value.
Don’t give up. You can often have property returned to you. Autos, jewelry and even electronics that have been repossessed, could be returned. If the repossession occurred within 90 days from your filing date, it is possible that some of your property can be returned to you. Consult with a lawyer that can walk you through the filing process.
Safeguard your home. It isn’t inevitable that you will lose your house when you file for bankruptcy. It is entirely possible that you will be able to keep your home. This is dependent upon the your home’s value and whether or not you have taken a second mortgage. You are still going to want to check into homestead exemption either way just in case.
It is important to know how Chapter 7 filings differ from Chapter 13 filings. Go to a reputable website and research the benefits and detriments of each type of bankruptcy. Go to a specialized lawyer to ask your questions and get some useful advice on what to do.
Remember to have fun with your life when you’re done with the filing process initially. It can be several months between the initial filing and the final discharge of debts. Depression can ensue from the stress if action isn’t taken. Life will get better; you just need to make it through the bankruptcy process.
Now that you know a little more about bankruptcy, this process should be much easier for you. At first it can be difficult, but personal bankruptcy can be overcome. If you use these tips and ideas, you will be on your way to a better financial future.