Keeping Your Head Above Water When Bankruptcy Is The Option
Posted at by PConran on category BankruptcyBankruptcy is a tough decision, one that should be given a lot of thought. Read this article to find out more about personal bankruptcy and get the information you need to make an educated decision. Become as educated as possible.
Most people end up filing for personal bankruptcy because they owe more than they make. If this is your case, you should do some research about bankruptcy laws in your state. The laws governing bankruptcy vary from state to state. For example, whether or not you can keep your home, as well as what you need to do to keep it, is different for every state. It is important to understand the laws in your state before filing for bankruptcy.
Do not use a credit card to manage your tax issues and then try to file bankruptcy. You will find few states that discharge this kind of debt. You may also wind up owing a lot of money to the IRS. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. Therefore, you should not pull your credit card out for purchases if it is just going to be discharged during the bankruptcy.
It is essential that you are honest and forthright in the documentation you provide for your bankruptcy filings. Resisting the temptation to hide income or valuable assets from the bankruptcy trustee is a smart way to avoid potential complications, penalties, and the possibility of being barred from re-filing in the future.
Try to get a bankruptcy lawyer that your friends recommend, as opposed to someone that you find from the Internet or yellow pages. Bankruptcy attracts a lot of fly-by-night firms that take advantage of desperate people, and a word-of-mouth recommendation makes it more likely that your bankruptcy will go smoothly.
Before you file for bankruptcy, find out which of your assets will be exempt from seizure. The Bankruptcy Code includes a list of the types of assets that are exempt from the bankruptcy process. 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. Without reading the list, you may be shocked at which possessions can be taken from you.
No matter what, 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 you have any property in repossession that was taken less than three months before filing for bankruptcy, then there are good odds that you can get your property back. Talk to a lawyer for help with the petition filing process.
Think carefully about your different options before filing for bankruptcy. One example would be that a consumer credit program for counseling if you have small debts. You may also find people will allow you to make lower payments. If that happens, get records of the debt modifications.
Do not let bankruptcy consume you, make sure you make time for your friends and family. The process of bankruptcy can prove particularly brutal. Not only is the process long, but it can be stressful, and many people feel ashamed when they do it. Lots of people choose to disappear for a while until the entire process is over and done with. This is not recommended because you will only feel bad and this may cause you to feel depressed. It’s crucial to spend time with loved ones despite your present financial situation.
If you are making more money than you owe, bankruptcy should not even be an option. Although you may see bankruptcy as a free pass to eliminate your debt, if you can slowly whittle away at your debt with your income, it will be much better than killing your credit score with a bankruptcy filing.
Find the right time to take action. When it comes to filing for bankruptcy, your timing is important. In certain situations, you should file right away, but other situations will warrant you waiting. Speak with a bankruptcy lawyer to see when is the best time for you to file bankruptcy.
As you are aware from the previous paragraphs, bankruptcy is not something that just happens. There are a number of things to do, each of which deserves careful attention. By taking what you have learned here and applying it, the process of bankruptcy will be much smoother.