Tips For Filing Chapter 7 And Chapter 13 Bankruptcy

A lot of people are in debt right now. They are hounded by creditors and collection agencies, and their bills show no sign of slowing down. If this is happening to you, then you might want to think about personal bankruptcy. This article will help you to decide if filing for bankruptcy is the right option for you.

If you are going through a bankruptcy do not fall victim to guilt and pay off debts that you do not need to pay. Don’t touch retirement accounts unless you don’t have a choice. Your savings accounts offer valuable financial security so try to leave them intact.

When you document your financial records, it is vital that you are 100% truthful in order to have a successful resolution to your bankruptcy process. Resisting the temptation to hide income or valuable assets from the bankruptcy trustee is a smart way to avoid potential complications, penalties, and the possibility of being barred from re-filing in the future.

Do not try to get clever by paying your taxes via credit card before you declare bankruptcy in an effort to dodge your tax burden. In a lot of places, the debt cannot be discharged, and you may still owe money to the IRS. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.

Unsecured Credit

Be aware that getting unsecured credit is going to be tough once you’ve gone through bankruptcy. This being the case, look at secured card options. This will prove that you want to improve your credit score. If you pay your secured card off on time, you’ll eventually find that companies will start offering you unsecured credit.

You may end up losing more than you bargained for when you file a bankruptcy claim, so be sure that you know just which assets may be taken before filing. The Bankruptcy Code provides a list of all the different kinds of assets that you can exclude. Be well prepared for bankruptcy by reviewing this list. It will tell you whether are not the things you value most are subject to seizure. If you are not aware of the rules, you could be setting yourself up for a lot of stress when your most important possessions are taken in the bankruptcy.

Always be honest and forthright when it comes to your bankruptcy petition. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.

If you aren’t totally honest about your assets when filing a bankruptcy petition, you could get into serious trouble. The professional that helps you file for bankruptcy has to have a complete and accurate picture of your financial condition. Do not leave anything out and come up with smart plan to manage the situation you are dealing with.

If you are meeting with a lawyer to discuss bankruptcy, the initial consultation should be free so ask every question you have. Almost all lawyers will give a free consultation, so meet with more than one before making a decision on whom to hire. The lawyer who properly answers your questions is the one you should hire. You don’t need to decide what to do right away. Take your time, and schedule consultations with more than one lawyer.

Before filing bankruptcy consider every available avenue. You may find consolidating your debt may be simpler. The whole process of filing for bankruptcy can be a long, and hard one. It will have a long-lasting effect of your future credit opportunities. You have to make certain that you absolutely have no other choice.

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. Do not hesitate to speak up; this is your hearing and your future is on the line.

Now you know that there’s so much assistance out there when it comes to filing for bankruptcy. Always remember that people who become informed before going through the motions do much better with everything involved. Take your time to read and to understand these tips before implementing them and using them to your advantage.