Dec 302017

When someone has to file for bankruptcy, it is never a good thing. The embarrassment can be overwhelming when friends discover your poor financial position. Using the tips in this article, you can learn how to avoid bankruptcy and get your finances on the right track.

Make sure you’ve exhausted all other options prior to declaring bankruptcy. It is possible to take advantage of other options, like consumer credit counseling. Bankruptcy is a serious negative on your credit history so make sure you have no other options before you file. It is important to keep your credit history as positive as possible.

Be sure to remind your lawyer if it seems that some details of your situation are forgotten. Don’t assume that he’ll remember something from a month ago; tell him again. Do not hesitate to speak up; this is your hearing and your future is on the line.

If you are truly faced with bankruptcy, avoid blowing your savings or retirement money, trying to pay off debts. You should not use your retirement savings unless the situation calls for it. If you do have to dig into your savings, make sure that you leave enough to sustain you and your family for a couple of months.

Ask those you know if they have an attorney to recommend, instead of finding one on the Internet or in the phone book. Some companies just want to take advantage of you, so it is important that you have help from someone you trust.

Don’t pay to for an initial consultation with a bankruptcy attorney, and thoroughly question each candidate. The majority of lawyers offer their first consult at no cost, so ensure you meet with several to find one that you like. Only make your decision if all your questions and concerns are adequately addressed. After the consultation, you are not immediately required to come up with a decision. You can take as much time as you need to meet with different lawyers.

Before you decide to declare bankruptcy, make sure that a less-drastic solution isn’t more appropriate. For instance, a consumer credit counseling program may be a better bet if your debts are relatively small. It may also be possible to get lower payments, but if you do, be sure to obtain records for any consensual debt modifications.

Be aware that getting unsecured credit is going to be tough once you’ve gone through bankruptcy. If this happens, instead you should turn your attention to secured credit cards. This will demonstrate that you’re seriously trying to restore your credit. If you pay your secured card off on time, you’ll eventually find that companies will start offering you unsecured credit.

Since the majority of attorneys are willing to provide no-cost initial consultations, it is smart to meet with more than one before you make a selection. It is important to meet with the actual attorney, not the attorney’s assistant or paralegal; those people are not permitted to give legal advice Comparing different lawyers makes it possible to find one with whom you work well.

Be sure you know what the difference between Chapter 13 and Chapter 7 bankruptcy is. Do some research about these options so you can choose the best one. If there is anything that you don’t understand, go over it with your lawyer so that you can make the best decision.

Filing for bankruptcy should not be done on a whim. For example, you can always talk with a lawyer to see about different options through creditors or other means that will not require wiping the entire slate clean. Loan modification plans can be helpful for those facing foreclosure. The lender may be willing to reduce interest rates, eliminate late charges or extend the life of the loan. Above all else, what creditors want is to get their money. Sometimes they would rather settle for a repayment plan instead of a debtor who is bankrupt.

When looking for a lawyer to handle your bankruptcy claim, the best way to go is off of a personal recommendation instead of simply flipping through the phone book. You want your bankruptcy to go smoothly, and the Internet is rife with fly-by-night companies whose only goal is to prey upon the financially desperate.

Understand the rights you have as a bankruptcy filer. Some debtors will try to tell you your debt with them can not be bankrupted. Few debts exist that are not covered by bankruptcy, such as student loans or child support. If these are not the categories in which your debts fall, double check to see if the type of debt can be bankrupted. If it can, be sure to file a complaint about the debt collector with the office of the state attorney general.

Personal Bankruptcy

Learn about the personal bankruptcy rules before petitioning. Your case may be rife with issues due to pitfalls inherent in codes regarding personal bankruptcy. Some mistakes can even lead to your case being dismissed. Make sure you check into your case and see that you have the paperwork filled out correctly. If you take care of this now, you can avoid problems going forward.

Research what assets are exempt from seizure before you decide to declare bankruptcy. The Bankruptcy Code provides a listing of the various asset types that are not included in the bankruptcy process. Many belongings may become eligible for repossession or seizure after filing for bankruptcy. Failure to do this could cause some ugly surprises down the road when you discover that your valuables must be seized.

Think about other options before you file for bankruptcy. One option to consider is credit counseling. You can get assistance from non-profit companies. They can negotiate with each of your creditors to work out payments that you can afford, along with reduced interest rates. Payments are then made to the creditor via the counseling service.

Do not get sizable cash advances from credit cards before filing for bankruptcy because you think the debt from the cards will 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.

Normally, you will not lose your assets when filing bankruptcy. You can keep your personal property. Personal property includes items like furniture, electronics, jewelry, and clothing. The personal items that you are allowed to keep will depend on your home state’s individual bankruptcy laws, your personal financial situation and the specific bankruptcy that you are filing for.

Don’t try to hide anything if you are filing for bankruptcy, as this will hurt you in the long run. The lawyer representing you when you file needs to have full knowledge of your financial situation. Being honest is both the right thing to do and, moreover, it is required by law.

Clearly, filing for personal bankruptcy is not your only option. Take the information provided here and avoid filing if at all possible. Begin today with what you learned here and soon you will see positive changes in your financial situation, so you can avoid the harmful process of filing for bankruptcy.

Do Not File Bankruptcy if You Have Not Filed Your Tax Returns

If you file bankruptcy - either Chapter 7 or Chapter 13 - you will need a copy of last year’s tax return and you may be asked to provide copies of previous years’ tax returns.

The U.S. Bankruptcy Code seeks to strike a balance between your need to eliminate or restructure your debt, with the rights of creditors who will be forced to write off, write down or change the terms of your loan obligations. Your bankruptcy trustee, as the administrator of your “bankruptcy estate” has the legal obligation to verify the information set out in your bankruptcy petition.

Your bankruptcy trustee will review your tax returns to see if your income from last year is substantially different from your income as of the date you have filed bankruptcy. If you earned a lot more or a lot less last year, the trustee will want an explanation.

In a Chapter 13 payment plan, the IRS and state taxing authorities will automatically get notice that you have filed bankruptcy. If you have unfiled returns in the past, your tax liability will be unknown. Your Chapter 13 plan cannot be calculated if your tax liability is unknown so any notice from the IRS or state that you have not filed returns will generate a request from the trustee for you to produce returns for those years.

Bankruptcy can be an effective tool to help you solve lingering tax problems but your attorney cannot help you if you have one or more unfiled tax returns. Make sure to let your lawyer know about any unfiled returns prior to filing.

Want more information about Chapter 7 and Chapter 13 in Atlanta and north Georgia? Visit our web site at or call Susan Blum or Jonathan Ginsberg at 770-393-4985 to ask any questions you may have.

Jonathan Ginsberg
Ginsberg Law Offices
Atlanta Bankruptcy Lawyers

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