Filing bankruptcy is a bit complicated. There is more than one type of personal bankruptcy, and your personal financial situation will dictate which type you should choose. It’s imperative that you learn everything you can about the process before you even think about filing. Check out the tips listed below if you want some solid info on the subject.
If you’re concerned about the details of keeping your car, try to ask your attorney about details regarding lowering your monthly payments. It is possible to get your car payment lowered if you file using Chapter 7. If you meet the criteria specific to your state, it may be a good option to consider.
Don’t take out big cash advances from any of your credit cards prior to filing for bankruptcy, taking advantage of the fact that those debts will later be erased. Not only is this fraud, but you could end up having to pay back the money, even once you have filed for bankruptcy.
Don’t pay tax requirements with your credit cards with the thought of starting the bankruptcy process afterward, without doing your research first. In many parts of the country, you cannot get this debt discharged, and in the end you will be left owing the IRS a big sum of money. The rule here is that if you can get the tax discharged then you can get the debt discharged. This makes using a credit care irrelevant, since bankruptcy will discharge it.
Don’t slow down any filing plans before starting a new job. Bankruptcy may be the solution for you, even with your changed circumstances. The timing of your bankruptcy is a big deal. If you file prior to a change in your income, your ability to repay debts will be measured by your former earnings.
Most attorneys make a free service available to deal with creditors who are constantly calling about your debts. All you have to do is give the number for the attorney’s office, which allows them to confirm the validity of your bankruptcy. Then they should not need to call you again.
Be decisive at the correct moment in time. Proper timing is important, especially when it comes to personal bankruptcy. In certain situations, you should file right away, but other situations will warrant you waiting. Discuss your specific situation with a bankruptcy lawyer to find out when would be your best time to file.
Before filling for bankruptcy, determine which assets will be exempted from seizure. The Bankruptcy Code lists the kinds of assets which are exempted when it comes to the bankruptcy process. It is vital that you know the things on this list prior to filing for bankruptcy, in order to determine which of your possessions will be taken away. If you fail to do so, things could get ugly.
If you file for a Chapter 7 type of bankruptcy, not all debts magically disappear so don’t have an expectation that they will. Some secured debts might have to be reaffirmed. This means that you may need to create a new agreement in planning to repay them and some debts are not dischargeable at all. For instance, you can’t get rid of alimony, child support or court-ordered fines using Chapter 7 bankruptcy.
If you need to file for bankruptcy, consider retaining a bankruptcy lawyer. A reputable lawyer can explain the bankruptcy process and be your representative in court on your behalf. An attorney can also complete the required paperwork and provide advice as you go through the process.
Whenever you file a petition for bankruptcy, do not leave out any information about your finances or assets. Overlooking any information can result in a delayed or rejected petition. Make sure that you add very small sums, even if you believe that they aren’t important. This might take the form of odd jobs, extra cars and outstanding personal loans.
As you can see, filing for bankruptcy is a serious decision that must be considered carefully before you make it. Should you determine that it is a wise move considering your personal circumstances, you need to consult with a lawyer who has handled many other bankruptcy cases.
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