Deciding to file a bankruptcy petition is quite significant and should be done carefully and deliberately. If you take a few moments to check out the different tips and tactics listed in the text below, you can begin to realize how to navigate your way through the tough mine field that is bankruptcy. Find out all the information you can before filing for bankruptcy.
Every single piece of financial information you have needs to be studied and properly listed when filing a bankruptcy claim. If you do not complete your financial profile your case could be delayed or dismissed. Even if it’s a small sum, make sure it is listed. Financial information should include all income, assets and loans.
Rest assured, when you file for Chapter 13 bankruptcy, you still have the ability to take out mortgage and car loans. However, the process of approval is a bit more stringent. You will have to get this loan approved by your trustee. Present a planned budget that shows how you can take on the loan payment and stay current. You will need to be able to explain why the purchase is necessary.
Don’t fear reminding your attorney of any specific details of your case. It is wrong to assume that your lawyer will remember every word you ever utter! This is your bankruptcy and your future, so never be nervous about speaking your mind.
Think about opening a few new credit lines for the purpose of rebuilding credit following bankruptcy. This is hard if you have bad credit, but using a secured credit card is something that you could do. These cards often charge very high rates, but you are likely to pay a higher rate, regardless of the source of your credit. When you have a fresh line of credit that’s in good standing, you’ll be more likely to qualify for loans or new credit cards.
If you start a new or second job, that doesn’t mean you should stop filing for bankruptcy! It might still be wisest to file for bankruptcy. Filing alters your life dramatically. If you file prior to a change in your income, your ability to repay debts will be measured by your former earnings.
As filing bankruptcy becomes more of a reality, don’t use your entire savings or your retirement funds to pay creditors or attempt to resolve insolvency. You should always keep money saved for worse times. Though you may need to use a bit of your savings, try hard to maintain some of your reserves so that you have some degree of flexibility going forward.
You should avoid paying your taxes with credit cards and then immediately file for bankruptcy. In many areas of the country, this debt will not be dischargeable, and you could be left owing a significant amount to the IRS. Transferring the debt to another medium (e.g. a credit card) won’t magically make a tax debt discharagable, either. Just because your credit card could be discharged in bankruptcy does not mean you should use it.
Filing for bankruptcy can cause stress. If you want to protect yourself from stress, see to it that you hire a good attorney. Don’t allow cost to determine who you hire. Hire the best attorney you can afford, not the one who charges the most. Speak with trusted people, check the BBB and take advantage of the free bankruptcy attorney consultations. If you want to know more about a specific lawyer, attend a court proceeding and see how the attorney handles herself.
Bankruptcy is not a something that simply happens, as this article has proven to you. There are a lot of things that need to be done and done correctly. By following the above advice, you will make fewer mistakes and find yourself better prepared.