Protect Yourself And Your Assets With These Bankruptcy Tips

Losing some of your valuable possessions, such as jewelry or vehicles, can make you very fearful. End calls from debt collectors and gain control over your finances by filing for bankruptcy. Find out what you need to know before filing bankruptcy.

TIP! When you document your financial records, it is vital that you are 100% truthful in order to have a successful resolution to your bankruptcy process. 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.

Learn as much as you can about bankruptcy by going to informational websites. You can learn a lot on the U.S. DOJ, along with a number of other bankruptcy institutes and attorneys specializing in bankruptcy can give you invaluable information. You will find that the process of filing for personal bankruptcy is easier and less of a hassle with the more information on the subject you gather ahead of time.

Credit Card

TIP! Don’t avoid telling your lawyer specific details with your case. Don’t just assume they already know and that they have these important details committed to memory or written down.

Don’t pay tax requirements with your credit cards with the thought of starting the bankruptcy process afterward, without doing your research first. The fact is that the credit card debt will be ineligible for discharge, and your tax debt may increase. Generally speaking if you can discharge the tax, you can discharge the debt. This means using a credit card is not necessary, when it will just be discharged.

Don’t be afraid to remind your attorney of certain details in your case. Just because you have told him something of importance that he will remember it. All information submitted to the court with your signature needs to be double checked.

TIP! Once the bankruptcy is complete, you may find it difficult to receive unsecured credit. If that’s the case, it is beneficial to apply for one or even two secured cards.

Once you file for bankruptcy, you will have a hard time getting loans or credits. Look into getting a secured credit card in order to get back on your feet with building credit. This at least shows you are making an honest attempt at reestablishing your credit worthiness. After some time passes they may be willing to offer you unsecured credit.

If you can, get a word-of-mouth referral for a lawyer. Although you may find a good lawyer through an advertisement, you can simply find a much better lawyer if the lawyer is recommended to you by someone who has gone through the process and who has the inside track on the lawyer’s true capabilities.

TIP! When you do meet with a lawyer make sure that they answer all of your questions and that they do not charge you for consultation alone. Most attorneys offer a free consultation which you should take advantage of.

Safeguard your home. Bankruptcy doesn’t always mean you’ll lose your home. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. Another option is the homestead exemption that has certain income and financial requirements, but may also allow you to keep your home.

Learn the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Investigate the benefits and pitfalls of both. Online resources may be able to provide all the information you need. If you don’t understand the information you researched, consult with your attorney about the details before you decide which type of bankruptcy you want to file.

Chapter 13

Find out more about Chapter 13. If you owe an amount under $250,000 and have a consistent income source, Chapter 13 may be right for you. This lets you keep any real estate and personal property while you repay all your debts through a consolidation program. Typically, this goes on for roughly three to five years, and once this time has expired, your unsecured debt is eliminated. Keep in mind that missed payments will trigger dismissal of your case.

TIP! Consider other alternatives before filing for bankruptcy. For example, consumer credit counseling programs can help if your debt isn’t too large.

Even though bankruptcy is always a personal choice, do not file without checking out all other options. You must remember that some debt consolidation services really are just a scam, and using them will result in even more debt for you. Keep the tips you read here close by and refer to them as you figure out your financial situation.