Tips And Hints On Fixing Your Finances To Avoid Bankruptcy

TIP! It is important that you increase your knowledge on personal bankruptcy by reviewing websites that provide reliable information. The US Department of Justice and American Bankruptcy Institute are both sites that provide free advice.

Bankruptcy is stressful, but it can provide financial relief. On one hand, people will be scrutinizing your private financial affairs. By contrast, once your bankruptcy is complete, you will have the freedom to rebuild your credit without being hounded by debt collectors. You can make the bankruptcy process easier on yourself by keeping the following tips in mind.

TIP! Instead of relying on random selections from the phone book or Internet, ask around and get personal recommendations. There are lots of unsavory companies and lawyers out there who prey on people who are in desperate straits.

Think twice if you have struck upon the idea of paying off your taxes by credit card and subsequently filing for personal bankruptcy. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. Generally speaking, debt incurred to pay taxes and the tax bills themselves are treated the same in a bankruptcy. So as you can see, in this situation there is no need to use the card when the debt will be discharged when you file for bankruptcy.

TIP! Don’t hide assets or liabilities when filing for bankruptcy. Penalties may include fines, imprisonment or denial of the filing.

Instead of jumping into a bankruptcy filing, be sure your situation requires it. Look into credit counseling to see if it could help you work out of your debt without bankruptcy. If you file for bankruptcy, a mark is permanently left on your credit. Therefore, before you do this, you should utilize all the other options that you have.

TIP! Avoid paying for a consultation with the bankruptcy attorney, but do ask many questions. Nearly all attorneys offer free initial consultations, so you should be able to meet with a few before you make a final hiring decision.

You might experience trouble with getting unsecured credit after filing for bankruptcy. Secured cards can be a great way to get started if this happens to you. That will show lenders that you are committed to rebuilding your credit. If you do well with a secured card and make strides to repair your credit, you will ultimately be able to receive an unsecured card.

TIP! Most bankruptcy lawyers offer a free consultation, so meet with several before you decide on one. Meet with the actual lawyer, not a paralegal or assistant, as they’re not allowed to give out legal advice.

Do not abandon hope. If you file for bankruptcy at the right time it could enable you to get your property back that you lost to repossession. You may be able to get your property back if fewer than 90 days have passed between the repossession and are filing for bankruptcy. Consult with a lawyer who can help you along with filing the petition.

TIP! Protect your home. Bankruptcy filings don’t necessarily have to end in the loss of your home.

Understand the differences between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy. Spend time researching the advantages and disadvantages of filing for each one of these. 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.

TIP! Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000.

Don’t forget to enjoy yourself during your bankruptcy. It’s easy to be stressed during this time. Don’t let the process control you in a negative way. You will get through it, and you should make an effort to remember that. Life will get better; you just need to make it through the bankruptcy process.

TIP! Spending time with the people you love is something you should do now. The process of bankruptcy can seem brutal.

Don’t file for bankruptcy without knowing your rights. Occasionally, debt collectors will attempt to convince you that your debt isn’t eligible for bankruptcy. Only a few debts are immune to bankruptcy. Taxes, student loans and child support would be the major ones. If the debt collector tries to tell you that your debts, which do not fall into those categories, cannot be bankrupted, take a note of it, look up the debt type, and report them to your state’s attorney general office.

TIP! Carefully consider filing for bankruptcy on loans that have a co-signer, especially if that co-signer is a business associate, close friend or relative. When filing Chapter 7, you are not longer liable for the debts that you and a co-debtor signed for.

Banish the word “shame” from your vocabulary before you file for bankruptcy. This process is less that glamorous, and it makes most people lose their self-esteem. Learn to accept these feeling at face value– you can’t prevent yourself from feeling them, but you can stop them from controlling you. Remembering to stay positive as you go through financial difficulties is a great way to deal with your bankruptcy filing.

TIP! It is important to understand your rights when you file for bankruptcy. You might hear from your creditors that your debts cannot be canceled through bankruptcy.

Before filing for bankruptcy, you must be educated on the specifics of all bankruptcy laws. There are often laws prohibiting the transfer of money from the filer for a certain period preceding the bankruptcy filing. Also, you must never incur significant new obligations must prior to filing for bankruptcy.

TIP! Exhaust all other option prior to filing personal bankruptcy. You may want to consider credit counseling.

Bankruptcy is both a good and a bad thing; it depends on perspective. Whatever your reason for doing it, keep in mind that information is the strongest ally you have throughout the entire process. The advice you have been provided with has probably helped you better understand bankruptcy. Using these tips in the process of filing can make you feel much better.


Share This Post

Related Posts