Howard R. Hanes

To punish me for my contempt for authority, fate made me an authority myself.

What kind of ! – Personal Bankruptcy Tips Straight From The Pros

Be sure to list any and all debts that need to be eliminated when you file your bankruptcy paperwork. If you don’t include all your debts, the ones you leave out won’t be covered by the bankruptcy. Double-check the paperwork before you file it. Otherwise, you might be liable for debts that you could have gotten rid of during bankruptcy.

Timing is everything. Filling for bankruptcy can be a matter of correctly assessing the right time to begin. Sometimes it is the best option to file quickly, whereas in other situations filing should be put off until the worst has already passed. Speak with a lawyer specializing in bankruptcy in order to learn when you should file your petition.

Although it may be difficult to get financing after filing for bankruptcy, it will not be impossible by any means. This is true, but filing for bankruptcy gives you the opportunity to eventually build your credit score again. Resist the temptation to open new lines of high-interest credit and make all your payments in a timely manner. Don’t file for bankruptcy without knowing your rights. Collectors may try to convince you that your debt can’t be discharged. Only a few debts, including child support and tax liens, are ineligible for bankruptcy. If these are not the categories in which your debts fall, double check to see if the type of debt can be bankrupted. If it can, be sure to file a complaint about the debt collector with the office of the state attorney general. Some attorneys have a free phone service where creditors can be referred when they try to contact you in regards to a delinquent account. You will be given a phone number where they can call to get information regarding your bankruptcy. This will put an end to the collection phone calls.

Spend time with friends and family to keep your stress levels to a minimum through the bankruptcy filing process. The process for bankruptcy can be hard. It can take a long time, take a great emotional toll and cause people to feel embarrassed and defeated. Many people tend to hide until their process is completed. This isn’t true though because when you isolate yourself you will just start to feel worse and may become depressed. Thus, you must keep living your life and socializing with those you love, no matter what is going on with your bankruptcy. Keep in mind though that personal bankruptcy might prove a wiser choice for your credit history than keeping making late payments. While the bankruptcy will appear on your credit report for the next decade, you can start repairing your damaged credit right away. Among the advantages of bankruptcy is that of a clean slate.

Don’t drag your feet when it comes to filing bankruptcy. For some people, they tend to ignore their poor financial situation and just wishing it away, but that is only putting you in more danger. Debts can get out of control fast. If you’re not taking care of these debts, you may be getting into trouble like wage garnishment. The minute you realize that your debts are too big to take care of, contact a bankruptcy attorney to discuss your options.

No good will come of trying to conceal your assets or your liabilities in the bankruptcy process; you want to be scrupulously honest when you declare bankruptcy. Good or bad, you must tell your bankruptcy attorney everything about your financial situation. Do not hold anything in secret and create a strategy on how you will deal with the things you are facing. Talk to an attorney about reducing your car payments so that you can keep your vehicle. Most of the time Chapter 7 bankruptcy will allow your payments to be lowered. There are a few requirements that you have to meet to be eligible, though. You have to have bought the car more than 2.5 years ago, your loan’s interest rate needs to be over a certain amount, and your employment history has to be good.

Safeguard your home. Filing bankruptcy does not necessarily mean that you will lose your house. It is entirely possible that you will be able to keep your home. This is dependent upon the your home’s value and whether or not you have taken a second mortgage. Otherwise, there is a homestead exemption you should look into, as it might let you stay in your house.

If you plan to seek bankruptcy soon, prevent using a credit card. Although you may have the urge to go out and buy something, this is not something the courts take kindly to. Take responsibility for your debt in whatever way you can. Now is the time to develop better financial habits for later.

Consider Chapter 13 bankruptcy for your filing. If you posses a regular source when it comes to income, and you have less than $250,000 of unsecured debt, you could file using Chapter 13 bankruptcy. This will allow you to keep your personal property and real estate and repay your debts via a debt consolidation plan. It usually takes three to five years to fulfill this plan. When the time is up, you’re unsecured debts will be discharged. Missing a payment under these plans can result in total dismissal by the courts. If most of your debt is from taxes, you are probably better off not filing for bankruptcy. Some filers pay the taxes that they owe with credit cards and then they file for bankruptcy. This is done with the hope of evading taxes by shifting the balance to a credit card account. However, legislation concerning bankruptcy forbids this and leaves you stuck with owed taxes and interest accrued.

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