Bankruptcy is not a quick fix for making poor financial decisions in the past. It is a decision that will affect your financial well-being for at least the next ten years. As such, the decision should not be taken lightly. Use the following tips to plan for the process and decide the only solution to your situation if it is true.
Don’t let bill collectors convince you that you are ineligible for bankruptcy. Debt collectors do not want you to file bankruptcy under any circumstances because it means that they will not get the money you owe them, so they will always tell you that you do not qualify when given a chance. The only way to truly know if you qualify is to research or speak with a bankruptcy attorney.
It would be best if you didn’t let bankruptcy get you down in the dumps. Bankruptcy can be a challenging time in anyone’s life, but it is meant to give you a fresh start, enabling you to establish good credit and move toward a better future for yourself and your family. Remember, bankruptcy is your legal right, so don’t feel guilty or ashamed of taking advantage of it. If you feel that you are suffering excess anxiety or depression over financial issues, counseling may help you better deal with your emotions and concerns.
Don’t repay personal debt to friends and family before filing for bankruptcy. Although you may feel obligated to pay these people back first, it is not a wise decision. Because you must reveal this information when you file for bankruptcy, the Trustee can legally ask for this money back or sue for it.
When filing for bankruptcy, the best thing you can do is hire an attorney. In addition to providing you with a free consultation, an attorney handles all the necessary paperwork in the appropriate time frame and deals with creditors for you throughout the process. An attorney makes the whole process easier. Even though they can be expensive, bankruptcy lawyers are invaluable during bankruptcy.
Before filing for Chapter 7 bankruptcy, consider how it could affect other people on your credit accounts, such as family members or business partners. When you file under Chapter 7, you will no longer be legally responsible for any debts signed by yourself and a co-debtor. Although, your creditors may insist that the co-debtor pay off the entire debt.
Make sure you act at an appropriate time. The timing of your filing could be important to its success. While there are times that it is ideal to file soon, there are other times in which you should wait. A lawyer is in the best position to evaluate your case and figure out when you should file for bankruptcy.
Be completely upfront and honest about your situation and assets to prevent courts from dismissing your case. If the court catches you deliberately hiding assets or income, it can bar you from filing and even refilling for bankruptcy on debts listed within the petition. This makes it impossible to remove debts.
Before filing for bankruptcy, keep in mind that child support will not be discharged in a bankruptcy case. This is because child support is a responsibility that a parent must pay. Bankruptcy does not remove that responsibility. Include any child support in your list of debts that will remain with you after the bankruptcy is discharged.
Understand that a bankruptcy filing may be better than continued missed payment when it comes to your credit score in the long run. Of course, bankruptcy hurts your credit for up to ten years, but you can begin to rebuild your credit immediately. One of the benefits of bankruptcy is a relatively fresh start.
A good personal bankruptcy tip is to take it all in stride. You have to remind yourself that you aren’t alone by having to file for bankruptcy. Many other people have found themselves in this situation, and many of them are probably willing to offer you some form of guidance.
Before you decide to file for personal bankruptcy, you should evaluate your finances thoroughly. If there are any places where you can save money to put towards your debts, you should consider doing so. Filing for bankruptcy will cause harm to your credit for many years to come.
A good personal bankruptcy tip is to be extra careful while filing for bankruptcy when you have children to take care of. There’s a blurry line when taking your assets and your child’s assets. Even the money you’re putting towards their college can be taken back.
Do not forget to list the name of any of the creditors that you would like to be included when you file for bankruptcy. Any creditor that is not listed will not be included. This means that you will still owe them the entire balance on your account.
A good personal bankruptcy tip is never to get too carried away with spending during special occasions. Everyone wants their families to have the best gifts, but going all out can seriously put you in trouble. You don’t want to be forced to file for bankruptcy after such an important event.
If you are filing for personal bankruptcy, look at your Facebook account and what it says about you. A Facebook profile full of pictures and stories of extravagant vacations, parties, and purchases is a red flag to the courts. The Trustee assigned to your case is likely to check out social media sites for more information on your activities and holdings. Make sure your postings don’t contradict your filings.
Read through the tips listed here as many times as necessary to fully understand what you need to know about bankruptcy. You should feel much more educated than before finding this article, making you better equipped to handle the magnitude of the decision you are facing.
