Are you way over your head in debt? Do you feel stuck between a rock and a hard place regarding your finances? The following article was written with you in mind, since it is filled with some good advice about bankruptcy. Take the time to read it and see if bankruptcy could be your way out.
Get a plan in place for after your bankruptcy is over. Your debt will be forgiven, but you have to find a way to make sure that your financial picture will recover. Set definite goals so that you are always working toward a financial future that will never get you in this position again.
Consider hiring an attorney who specializes in personal bankruptcy. Although most states allow you to file for bankruptcy without a lawyer, your case could be dismissed if you don’t fill out your paperwork correctly, and you may need to file additional motions to protect your property or discharge certain debts. A bankruptcy attorney can help ensure that you get the outcome you hope for when you file.
An important tip regarding personal bankruptcy is, gaining an understanding of what sorts of debts can, and cannot be included in a discharge. By realizing that some obligations are not considered dischargeable under the bankruptcy code, it is possible to make a wiser, more informed choice when it comes to making the decision to file a petition.
Remember that certain kinds of debt won’t be discharged even after you have filed for bankruptcy. If you have outstanding student loans, owe child or spousal support, a divorce settlement agreement, or unpaid taxes, you will still be liable for these debts. Also, if you forget to list certain debts on your court documents, you won’t be able to add them in the future.
Take steps to ensure your home is protected. You don’t have to lose your home just because you are filing for bankruptcy. Check your home’s current value to see if it has gained equity and get your first and second mortgage papers together. Check to see if you pass the requirements necessary to file for a homestead exemption.
Understand the differences between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy. Learn the benefits and drawbacks of each type before deciding which is right for you. If you’re really not sure how this all works after your research, meet with your lawyer and ask them prior to making a decision.
If you have co-signers on car loans, or others who are responsible for your bills, consider filing for Chapter 13 bankruptcy if you want to help them. If you file for Chapter 7, you may not have to pay anymore, but they are still responsible. Talk to the people involved, and think carefully before making a choice.
Avoid running up your debt limit before you file for bankruptcy. Judges, and creditors look at recent history along with your current situation. A judge can deny some of your debts from being wiped out if, they think you’re just taking advantage of the system. Try to show that that you’re willing to change your fiscal habits.
Keep in mind that, currently, student loans cannot be discharged when filing for bankruptcy. There is a process by which student loans could be considered dischargeable, but it is costly, difficult, and rarely successful. However, student loans in bankruptcy have been a topic discussed by Congress in recent years, so keep up with new bankruptcy laws to find out if any changes have been made.
Do not “�play the system’ before filing bankruptcy. Do not go out and run up all of your credit cards, this does not look good to the judge working on your case, and it will not look good on your record. Once you decide to file, quit using your credit cards immediately.
Continue to pay certain bills. Once you file for Chapter 7 bankruptcy, you won’t receive any more collection calls, and you may cease to receive certain bills. Remember that you are still under obligation to pay for your ‘secured possessions’, such as your home or vehicle, or you may lose them.
As you prepare to file bankruptcy, you must prepare a list of all your assets. This includes any financial resources, such as financial accounts, titles to real estate holdings or vehicles, and anything you own that exceeds $500 in value. Having this information handy and accurately documents makes the whole process of bankruptcy go much smoother.
If you are having trouble getting a loan after having filed for bankruptcy, do not make the mistake of trying to get a payroll advance loan. These loans charge ridiculously high interest rates and there is a strong likelihood that you could end up going back into debt as a result.
If you have fallen behind on your taxes, Chapter 13 bankruptcy may be the best thing for you to do. Doing so will help stop the interest and penalties from adding up even more. Chapter 7 is not the way to go when dealing with a pile of back taxes. That debt will still be owed after the bankruptcy is complete.
Remember to check for accuracy. Even if you have a lawyer to do that work for you, you are the one who has to make sure your information is correct. Some attorneys may be overloaded, so they may omit or misremember details, which can lead to inaccuracies. Always verify that information is correct on all paperwork.
Exercise extreme caution with your credit cards, if you are headed into bankruptcy. The regulations governing bankruptcy can prevent you from discharging credit card debt in many situations. Cash advances and non-essential charges are particularly vulnerable. Your creditors can and will challenge these items and prevent you from getting rid of that portion of your debt.
Hopefully, this article has provided you with some answers to your questions. Most importantly, this article has shown you that you do have some options available. Now it is time for you to get up and get control of your finances. Keep this information in mind as you plan your next steps.
