Helpful Tips If You Are Considering Filing For Bankruptcy
Posted at by PConran on category BankruptcyBankruptcy is stressful, but it can provide financial relief. There is the need for all your finances to be exposed, and multiple people scouring your financial information. On the other side, you will no longer receive calls from bill collectors and you can work on your finances. Here are some simple tips anyone can use to help make the process of bankruptcy go smooth.
If you are thinking about paying off your tax obligations with a credit card and then filing bankruptcy, think again. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS. The rule here is that if you can get the tax discharged then you can get the debt discharged. Just because your credit card could be discharged in bankruptcy does not mean you should use it.
Find out what you exemptions are prior to filing bankruptcy. The kinds of assets which may be exempted during bankruptcy proceedings are listed in the Bankruptcy Code. Be sure that you study this list. Make yourself aware of any assets you have that could be seized. This will ensure that you do not have any surprises once you have filed bankruptcy.
Do not attempt to conceal any assets when filing for bankruptcy because you may be penalized when they are discovered. All of your financial information, be it positive or negative, must be disclosed to those in charge of filing your case. They need to know it all. Divulge all of your information so that you and your lawyer can devise the best strategy for dealing with your situation.
Never give up. There may still be way to get repossessed items back after you file for bankruptcy. If you have property repossessed less than ninety days prior to filing your bankruptcy, you may be able to get it back. Get help from your lawyer to file a petition so you can get your items back.
There are two different kinds of personal bankruptcy you can file for: Chapter 7 and Chapter 13. Investigate the benefits and pitfalls of both. Online resources may be able to provide all the information you need. If you are confused by what you find, be sure to ask your attorney to explain anything that is unclear before you make your decision about filing.
A great tip to remember if you have filed for Chapter 13 is that you will still be able to receive a loan, so you shouldn’t refrain from trying. There will, however, be obstacles. You need to speak with your trustee so that you can be approved for a new loan. When meeting with the trustee, bring a budget which shows that you will be able to afford the payment on the loan you are trying to get. Also, you need to be ready to say why you’re going to need the item.
Look at bankruptcy as a chance to mature and take responsibility for your personal finances. It is possible for those going through the bankruptcy process to feel unworthy, guilty or ashamed. These are useless emotions, however, and can be harmful to your mental state. The best way of dealing with bankruptcy is to keep a positive attitude during this time of financial upset.
Filing bankruptcy will always have good and bad sides. No matter your reason for going through with it, remember that information is essential to the whole process. Apply the tips from this article to help make your bankruptcy an easier process. Use these tips and you’ll see how they make you feel better about dealing with the processs.