Personal Bankruptcy: Some Tips You Should Know About

Finding Read Homepage about filing personal bankruptcy does not have to be difficult. There are things to do and things to avoid doing just before and following filing bankruptcy. The following article is full of information that may help you know what to do and what not to do around the time of filing bankruptcy.



If you are being faced with home foreclosure, wage garnishments or other situations that make it necessary to file for bankruptcy quickly, you may want to explore an emergency filing. Regular bankruptcy filings entail approximately 50 pages of paperwork and one to two weeks for an attorney to pull everything together. In an emergency filing, your attorney can file just the first 2 necessary pages and keep creditors from continuing foreclosure or garnishment proceedings. The rest of the work will be completed afterward.

Trying to exclude family members you owe money to before filing for personal bankruptcy can get you into serious hot water. The court will look into who you pay-off as far as a year back, and if they find you showing favor to family over other creditors, they could invalidate your filing completely.

Read Significantly more , when a debtor files for Chapter 7 bankruptcy, their home can be protected. This is because of the homestead exemption. This exemption can protect the home, if the debtor owes below a certain threshold. Laws concerning this exemption do vary between states. Be sure to consult with a bankruptcy attorney before, assuming your home is safe from liquidation.

Talk to other professionals before talking to a bankruptcy lawyer. Talk to financial advisers and credit counselors to see if bankruptcy is, in fact, your best option. A bankruptcy lawyer has a conflict of interest, so they are less likely to dissuade you from filing for bankruptcy. Finding an impartial, knowledgeable thirty party will give you the complete picture.

Know the differences between Chapter 7 and Chapter 13 bankruptcy. If you file using Chapter 7 bankruptcy, you will get all your debts eliminated. This type of bankruptcy ends any relationship you might have with creditors. Filing Chapter 13 differs by requiring you to agree to a 60 month plan to repay your debts before they are totally eliminated. You must know about the different bankruptcy types, and how each can affect you.

Be prepared to complete some mandatory courses. When you file for bankruptcy, the court will require that you successfully complete two mandatory courses, a credit counseling course and a debtor education course. Both of these courses can be completed online for a nominal fee, and while they are not too difficult, it is important that you are prepared for them.

Look into proper timing. You can keep your tax refund even when filing bankruptcy. You have to time it just right to do so. Wait until after your tax form has been processed, and you have received your tax return. One of the sneakiest things that a trustee does is to take an income tax return that debtors rely on. Waiting can keep that money in your pocket.

Shop around for a bankruptcy lawyer. Make use of free consultations, if a law firm offers them. Be sure to check out the attorney's track record. For other kinds of bankruptcy advisers, do the same and be sure they're licensed if your state requires it. Don't ever pay debt negotiation firms any cash up-front and be sure you can pay based on the result. Don't hire someone who doesn't have good references or makes you feel uncomfortable.

Be honest about your debts. When you file for bankruptcy, you need to be completely honest about your debts. If you attempt to hide any income, or assets from a Trustee, you might find that the court dismisses your case. You will also be barred from re-filing any debts that were listed in that petition. Report all financial information, no matter how insignificant it may seem.

Start taking calls from bill collectors. You may have been avoiding calls from bill collectors, but if you are filing bankruptcy you may need to speak to them. You need to have all of your debts laid out so that your lawyer can get to work involving them in your case. If you don't include a debt, it will not be discharged, and you will still have to pay it.

Start getting used to paying for items with cash. Because bankruptcy will affect your ability to acquire credit for the foreseeable future, and credit you do obtain will have a high interest rate, pay for everything you can with cash or a check to prevent racking up new, much more expensive debt.

Make sure that you fully understand the implications of declaring yourself bankrupt. Once you have filed for bankruptcy, you will find it difficult to secure any credit at all. While you may not see that consequence as a huge problem at the moment, if you wish to purchase a home in the future, or lease an automobile, you are probably going to need the credit.

Take the time to make a complete list of your debts. This will be included in your bankruptcy filing, so include every entity that you know you owe money to. Go over all your financial records and do not forget anything. Take your time and make sure all the numbers are correct.

If you act early enough, you may be able to take advantage of Chapter 13 bankruptcy, instead of Chapter 7. Chapter 7 is the traditional "liquidation" bankruptcy, which will involve selling off your assets. In contrast, Chapter 13 is a repayment bankruptcy. You will have to pay off a portion of your debt, but you can hang onto your property.

When trying to recover from declaring bankruptcy, it is extremely important that you pay your bills on time. The most important consideration when it comes to figuring your credit score is whether, or not your payments are timely. Your credit score will spring back faster if, you do not not make late payments.


Do not drain your 401K or retirement plan, in order to use the funds to pay off debt before filing for bankruptcy. Those funds are protected, so you should hold onto them. If you need to, use them to keep up with the payments for the secured lines of credit on the things you plan to keep.

Personal bankruptcy filings can be a topic of great importance for many consumers, but also one that causes tremendous anxiety. The truth is that when used wisely, the bankruptcy process can be an important tool for getting a fresh financial start. By applying these ideas to your personal situation, it is possible to gain a better understanding of the ways in which you can benefit from the protections offered by a personal bankruptcy filing.

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