How You Can Find Out If Personal Bankruptcy Is The Best Option For You

 

It’s scary to have a ton of debt hanging over your head. It seems as if one little debt somehow ballooned into catastrophic debt. By the time it gets to the point of overwhelming you, fixing it is difficult. Continue reading to learn great advice to help you understand what you need to know about bankruptcy and debt.

One of the most important things to remember when filing for bankruptcy is to be honest and truthful every step of the way. Do not try to shield some assets or income from your creditors. This can get you in serious trouble and prevent your bankruptcy petition altogether.

Credit Cards

If you will get hit hard when it comes to your taxes, don’t assume that bankruptcy will get you out of it. Some people who file pay their taxes with credit cards, then immediately file for bankruptcy on those cards. This is done assuming that filers can cheat the system, since the balance can be found on credit cards. This is a forbidden tactic, though, and not only will you still have to pay taxes, but you’ll also have to pay the credit card bill!

Double check the accuracy of your information. Realize that mistakes can occur at any point in the process and the accuracy of the information is your responsibility. While your attorney is a professional, they are likely to be handling multiple cases at the same time. They might not keep every little detail of their many cases straight. It’s a good idea to keep a careful eye on the paperwork and proceedings because of this.

Check each debt to be sure everything can be cleared through bankruptcy to avoid any excessive filing. Debts like student loans may stay in your financial history regardless. If your debt is primarily made up of these types of debt, loan consolidation may be a better option than bankruptcy.

If you are going to file for bankruptcy make sure you are prompt. A lot of people ignore their financial problems, thinking they are going to go away; that is a big mistake. Debts can multiply very quickly, and can result in you losing money to wage garnishment, or even losing assets that are part of a secured loan. Speak with a bankruptcy lawyer as soon as you become aware that you cannot handle your debts.

Once you get to the stage of talking with a lawyer about your bankruptcy be sure to give them a list of all of your largest debts. If you fail to disclose financial information, the court may delay, suspend or deny your petition for bankruptcy.

Do some research to find out which assets you could lose by filing for personal bankruptcy. The Bankruptcy Code contains a list of various assets that are excluded from bankruptcy. It is important that you read this list before filing for bankruptcy, so that can find out whether or not your most prized possessions will be seized. You wouldn’t want to unexpectedly lose any possessions you treasure.

Avoid Bankruptcy

You should consider getting more money by obtaining another job. You may be able to avoid bankruptcy by negotiating with your creditors in order to find a workable plan for paying off your debt. Hopefully, they will make some concessions for you and you can avoid bankruptcy.

Be sure you know what you’re doing before you begin. If you plan to file for bankruptcy and cannot afford an attorney, you might think about representing yourself. Be scrupulous and thorough in your research and preparation if you decide to do so. Realize, however, that people who file on their own often make mistakes that prevent the process from going forward. You must have all your information and ducks in a row.

Don’t pay to for an initial consultation with a bankruptcy attorney, and thoroughly question each candidate. Most attorneys offer free consultations, so meet with a number of them before you retain one. Choose to file only if your lawyer has convinced you that this is the best decision. It is not necessary to decide immediately after your consultation. This offers you the opportunity to speak with other attorneys.

Credit Cards

Lots of people who file for bankruptcy say they will never use credit cards again. This is not wise, since credit cards can help to rebuild credit. If you don’t ever use credit, your credit history will not improve, and you may not be able to purchase important things like a home and car. You just have to realize that proper planning is going to have to take place and that you are going to have to start back up one step at a time.

Meet with a few attorneys who offer free consultations before hiring one. Never settle for speaking with a paralegal or an assistant. They are not trained, nor allowed, to pass on legal advice. Seeking out different attorneys is all part of the process until you find someone that you can trust.

Sometimes, life can throw you a curve ball that you were not expecting. Use what you learned from this article to regain control of your financial situation. Having this information can change the way you face this challenge.

 
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01/01/2013