Though making the choice to file bankruptcy is never easy, it is often essential. The best way to approach the situation is with an education about the process. Keep reading to learn some valuable tips from someone who has stood in your shoes.
Don’t file for bankruptcy the income that you get is bigger than your bills. While filing may seem simple and a way to get out of paying your debts, it does tremendous amounts of long-term harm to your credit report.
Quickly decide to start being more fiscally responsible prior to filing. Avoid incurring new obligations or allowing existing debt to grow in advance of your bankruptcy. Creditors and even judges look at your current and past history when they are going through your bankruptcy paperwork. Let them see how you are making positive changes to your personal financial management by demonstrating what you are doing right now.
When filing for bankruptcy, list all of your financial information. If you do not do so accurately, your petition could be dismissed, or at the very least delayed. Even if it’s a small sum, make sure it is listed. Some things to be included are: current loans, valuable vehicles and side jobs.
Unsecured Debt
Look into filing Chapter 13 bankruptcy. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. That plan lasts approximately three to five years, and then you are discharged from unsecured debt. Keep in mind that missed payments will trigger dismissal of your case.
If you are sure that bankruptcy is your only option, start learning everything you can about bankruptcy laws for your state. Be candid with your attorney and stay involved in the process to ensure a healthier financial future.
If you plan to file for bankruptcy within the next year, don’t put your assets in another individual’s name. This will be interpreted by the court as hiding assets and prevent you from filing for bankruptcy. Depending on the asset, it may be safe from creditors, in any case. Whether or not your assets are safe from creditors, hiding them is unacceptable. If transfers of assets have been made in the recent past, you are well advised to wait 12 months before filing for bankruptcy.
Do not pay off debts blindly before you file a personal bankruptcy. The laws surrounding bankruptcy often prohibit paying back certain creditors up to ninety days prior to filing, and family members up to a year! Before making any final decision concerning your finances, you should be educated on the rules of bankruptcy.
Although people don’t want to file bankruptcy, it’s sometimes necessary. You should now have some excellent advice from people who have personally struggled with the bankruptcy process. Learning from others who have filed for bankruptcy is the best way to ensure that you make intelligent decisions and avoid making any mistakes