Personal Bankruptcy: Tips For Starting Over With A Clean Slate
Posted at by PConran on category BankruptcyDo not approach personal bankruptcy in a capricious manner. Before you file for personal bankruptcy, be sure that you understand all of the ramifications. Apply the advice within this article to have guidance in the proper direction. Deciding whether or not to file for bankruptcy is a big decision. Proper and thorough research can alleviate some of that pressure.
You should check with the personal bankruptcy resources available online to educate yourself thoroughly before you begin the process. The U.S. DOJ, the NACBA, and the ABI all have useful information. The greater your body of knowledge, the better prepared you will be to make the decision of whether or not to file and to make certain that if you do file, the process is a smooth one.
Don’t use credit cards to pay your taxes if you’re going 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. A common rule is that dischargeable tax means dischargeable debt. Therefore, you should not pull your credit card out for purchases if it is just going to be discharged during the bankruptcy.
As bankruptcy appears on the horizon, don’t take your savings or retirement accounts to try to pay off all your bills. You should make every effort to leave your retirement accounts untouched until your retire. Dipping into savings may need to happen, just don’t totally wipe it out, or you might not have much financial security later.
Don’t fear reminding your attorney of any specific details of your case. Just because you have told him something of importance that he will remember it. This is your future in their hands, so don’t be scared to mention it.
Although you can find many bankruptcy attorneys listed in your local Yellow Pages or online, it’s best if you can find one through the personal recommendation of a friend, family member or acquaintance. There are lots of unsavory companies and lawyers out there who prey on people who are in desperate straits. It is up to you to find someone that is trustworthy and can make the process go smoothly.
You must be absolutely honest when filing for personal bankruptcy. If you try to hide any of your information, it will eventually surface and cause you problems. The lawyer representing you when you file needs to have full knowledge of your financial situation. Telling the truth will allow you reach a solution that is feasible, given your current situation.
Make certain that you comprehend the differences between Chapters 7 and 13. If you file using Chapter 7 bankruptcy, you will get all your debts eliminated. This type of bankruptcy ends any relationship you might have with creditors. With a Chapter 13 bankruptcy, you will have to make payments for 5 years before the debts are forgiven. You need to be aware of the pros and cons of each type of bankruptcy so you can correctly select the best choice for your situation.
Consider filing using chapter 13 bankruptcy. If you owe an amount under $250,000 and have a consistent income source, Chapter 13 may be right for you. Not only can you repay your debts through consolidation, personal property can be kept, as well as real estate. The plan is usually for a term of three to five years, and a discharge will be granted at the end of that term. Remember that you must make every payment. Missing even one could cause the court to dismiss your case.
Spending time with the people you love is something you should do now. Filing for bankruptcy is a difficult process. This long and stressful process can leave a person feeling guilt ridden, unworthy and ashamed. Avoidance of friends of family during the process is not uncommon. But, isolating yourself from others could bring out more depression. Time spent with people who care about you can give you new perspective on your financial situation.
After reading this article, you will know how to file a claim bankruptcy. Don’t become overwhelmed by the enormous amount of information available. Think carefully about your situation and the tips at hand. You will be more likely to make beneficial and thoughtful decisions as a result.