Personal Bankruptcy Affecting Your Life? Try These Tips
Posted at by PConran on category BankruptcyPersonal bankruptcy can always be an option for people that have had items, like vehicles, repossessed by the IRS. Depending on personal circumstances, personal bankruptcy can be the only sensible option, despite the hit it levies on credit availability. The article below discusses some of the pros and cons of filing bankruptcy.
Do some research online about personal bankruptcy to get a better idea of what this procedure implies. The U.S. Check out the Bankruptcy Institute site and do some research about consumer’s rights. You will find that the process of filing for personal bankruptcy is easier and less of a hassle with the more information on the subject you gather ahead of time.
Ask yourself if filing for bankruptcy is truly your best option. You have other options available like consumer credit counselling services. Bankruptcy will leave a permanent scar on your credit report and before you take this huge step, you should search through every available option first, to help try and limit the damage to your credit.
Do not use your retirement fund or savings to pay off creditors. You should always keep money saved for worse times. You may need to use some of your savings; however, you should not use all of your savings. Remember that you must safeguard your future financial security.
Honesty is of utmost importance during your filing, even though it may be tempting to “pad” your answers a little. Do not hide any income or assets or go on a spending spree before filing for bankruptcy: the court will find out and will not have a positive opinion of you.
Try going to a personally recommended bankruptcy lawyer instead of using a phone book or the Internet. To handle your bankruptcy, you need a trusted attorney, not a shady one that is out to take your money.
Always weigh your options carefully prior to deciding to dive head first into filing a bankruptcy claim. For example, if you only have a little bit of debt, you might be better off if you went through consumer credit counseling. You might also be able to negotiate lower payments yourself, but make sure that you get written records of any debt modifications to which you agree.
Protect your house. Bankruptcy filings don’t necessarily have to end in the loss of your home. Whether you get to keep your home depends on a few things, including its value and whether you have debts like a second mortgage or HELOC. You could also check out the homestead exemption. This lets you continue living in your house, depending on whether you meet certain financial requirements.
When you file for bankruptcy, you should be very aware of your rights. Some debtors will try to tell you your debt with them can not be bankrupted. There are very few debts, such as child support or student loan debt, that can’t be bankrupted. 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.
Act at the right time. Proper timing is important, especially when it comes to personal bankruptcy. In some situations it is best to file as soon as possible, but in other situations it is best to wait until after you’ve gotten through the worst of it. The professional advice of a bankruptcy lawyer can help you pin down the best time to file given your current financial state.
Make certain that you are fully aware of each and every bankruptcy law prior to even considering filing. For example, it is against the law to transfer any assets from the filer to another for a year before filing. Also, it is illegal to load up your credit cards with debt right before filing occurs.
As was stated before, the option of filing for personal bankruptcy should be kept open. But, because of the effect it has on one’s credit, it shouldn’t be the first choice. 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.