A lot of people today have sunk into debt. They have lots of collection calls and they have trouble paying their bills. If you are in that situation, filing for bankruptcy may be a good idea for you. Read this article to determine if this is the best decision for you.
If you’re in this situation, you should read up on the bankruptcy laws in your state. Different states have different laws when it comes to bankruptcy. For example, the personal home is exempt from being touched in some states, but others do not. You should be aware of local bankruptcy laws before filing for bankruptcy.
Don’t use a credit card to pay off your taxes if you’re going to file bankruptcy. In a lot of places, the debt cannot be discharged, and you could be left owing a significant amount to the IRS. This makes using a credit care irrelevant, when it will just be discharged.
You shouldn’t dip into your retirement savings unless the situation calls for it. While dipping into your savings is likely to be necessary, never completely wipe it out which would only leave you in worse financial shape in the future.
You might experience trouble with getting unsecured credit after emerging from bankruptcy. If you do, apply for a secured credit card. This will demonstrate that you’re serious when it comes to having your credit. Once you’ve built up a history of on-time payments, they may allow you to get an unsecured card in the future.
When looking for a lawyer to handle your bankruptcy claim, your best option is to find someone who is recommended by someone you know versus someone who you find online or in the phone book. There are way too many people ready to take advantage of financially-strapped individuals, so always work with someone that is trustworthy.
The person you file with needs to know both the good and bad aspects of your finances.
Stay abreast of new bankruptcy if you decide to file. Bankruptcy law has changed substantially in recent years, and you need to be aware of any changes so your bankruptcy can be properly filed. Your state’s legislative offices or website should have the information about these changes.
Filing for bankruptcy does not always mean you have to lose your home. Depending on if your home’s value has gone down or if it has a second mortgage, you may very well end up being able to keep your home. You may also want to check into homestead exemption because it may allow you to keep your home.
Chapter 13 Bankruptcy
Consider if Chapter 13 bankruptcy for your filing. If you have a regular source of income and less than $250,000 and have a consistent income source, you may be able to file Chapter 13 bankruptcy. This plan normally lasts from three to five years, your unsecured debt will be discharged. Keep in mind that even missing one payment can be enough for your case.
This stress could actually cause depression, if you fail to adequately address the problem. Life is going to get better after you get this situation over with.
It is possible for those going through the bankruptcy process to feel unworthy, remorse and embarrassment.These feelings can cause you and cause psychological problems.
Personal Bankruptcy
Gain an understanding of personal bankruptcy law before you can. There are a lot of pitfalls in the personal bankruptcy laws that could trip up your case. Some mistakes can even lead to having your case being dismissed. Make sure you are fully aware about personal bankruptcy process before you proceed.This will make the bankruptcy process much easier.
This is considered fraud, and you will be required to pay that money back.
Once a few months have passed after your bankruptcy, you should re-evaluate your credit with all three of the credit bureaus to confirm accuracy. Check to make sure that your report accurately reflects your debts have been discharged debts.
Many people tend to get divorced and have to immediately file bankruptcy because of unforeseen financial trouble. Reconsidering divorce is always a very smart option.
No matter how messed up things are as you file for bankruptcy, be honest. Lying or hiding information about debts and assets is a very bad mistake. You can end up in jail for a while if you lie when recording your assets and debts.
Make sure that the lawyer you hire is an experienced bankruptcy lawyer. There is a plethora of personal bankruptcy attorney for you to choose from.
Chapter 7
Chapter 7 bankruptcy does not necessarily erase all of the money you owe. For example, you can’t discharge court-sanctioned fines, court fines and alimony obligations cannot be discharged in Chapter 7 cases.
Make sure that everything in your petition for bankruptcy. Any attempt to hide assets or debts can result in dismissal of your case. Disclose income or assets that are relevant to everything going on. This can show the court that you are working to resolve the proceeding.
This article should have made it clear that there is plenty of help out there for someone who wants to file for bankruptcy. If you open your mind to this process and think clearly, it can lead to better financial situation and leave you in a much better position than before.
