You are not alone if you have become a victim of debt. Their bills pile up higher while debt collectors and creditors keep their phones ringing constantly. If you are having financial difficulty, it is a good idea to research all your options, including bankruptcy. Read the following paragraphs to decide if this path is one that you should take.
It is essential when going through bankruptcy that all of your income and assets are reported openly and honestly. You may be tempted to try to hide income and personal assets from discovery, but doing so often leads to major complications, monetary penalties and the possibility that your case will be thrown out of court.
Don’t be afraid to remind your attorney of certain details in your case. Inaccurate or incomplete information can lead to your petition being denied. Don’t fear speaking up since it affects your case and future.
Generally bankruptcy is filed when a person is facing insurmountable debt. If this is the case for you, you should begin to investigate the legislation in your state. Each state has its own laws regarding personal bankruptcy. For instance, in some states, you can’t lose your home to bankruptcy, while in other states, you can. Do not file before learning about the bankruptcy laws in your state.
Research what assets are exempt from seizure before you decide to declare bankruptcy. There are some assets that cannot be seized through bankruptcy, and the law lists those assets. 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.
It is important to list all your assets and liabilities during the bankruptcy proceeding. Failure to do so will only cause you problems in the end. Wherever you file, that court has to be made aware of all details regarding your finances, positive and negative. Do not hold anything in secret and create a strategy on how you will deal with the things you are facing.
Before pulling the trigger on bankruptcy, be sure that other solutions aren’t more appropriate for your case. For example, you may want to consider a credit counseling plan if you have small debts. Also, you could try to get your payments lowered on your own. If you decide to do this, get a copy of anything you agree to.
Learn as much as you can about bankruptcy by going to informational websites. The U.S. DoJ along with other private and nonprofit organizations all have insightful knowledge. As with everything in life, the more you know about filing a claim, the better off you’ll be. You can properly prepare when you know what you’re preparing for.
Learn what you can about Chapter 13 bankruptcies. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. You can keep personal possessions, as well as real estate, while paying into a debt consolidation system. Expect to make payments for up to 5 years before your unsecured debts are discharged. However, if you were to miss a payment, the court would dismiss your case right away.
Spend time with loved ones. Filing for bankruptcy is a difficult process. It is extremely stressful and long, and it can leave you feeling ashamed of yourself. Lots of people decide they should hide from everyone else until it is all over. But, isolating yourself from others could bring out more depression. Because of this, you need to make sure you spend as much time as you can with your family and friends, even if you are ashamed of your finances.
Don’t use credit cards to pay your taxes if you’re going to file bankruptcy. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. So, in short, do not use your credit cards to pay off debts right before you file for bankruptcy.
Look at all of your options prior to deciding to file for bankruptcy. There are many recouses available to help you lower your payments and get back on track. If foreclosure looms, think about getting your loan plan modified. Your particular loan holders can provide a lot of assistance if you’re just willing to speak with them. You can negotiate lower rates, longer terms, and other means of repayment that may keep you from having to file a claim. Creditors want their money. Often, they are willing to work out repayment plans with you in order to get it.
As you can see, there is a lot of help available if you are considering filing for personal bankruptcy. If you go into the process armed with knowledge and confidence, you can wipe away your debt and give yourself a fresh start.