Things You Had To Know Before You File Personal Bankruptcy

If you are thinking about bankruptcy and haven't made a final decision about it yet, it's important that you know what is involved. If you are not a bankruptcy lawyer, you, more than likely, have not dealt much with bankruptcy law. Here are some quick tips to help you understand what you may go through.



Once you have filed for bankruptcy, you need to go over your finances and do your best to come up with a manageable budget. You want to do this so that you will not end up so deep in debt again that you will have to file for bankruptcy, again.

If you know people who have filed for bankruptcy, ask them who they would recommend rather than relying on Internet reviews or worse, just randomly picking someone out of the phone book. Don't be taken in by some fly-by-night company that exists only to profit from the suffering of others. Check out any lawyer you are considering thoroughly before engaging him or her.

Don't charge up your credit cards knowing you are going to file bankruptcy, if you have already started the process or made recent purchases for luxury items. While this type of purchasing is still part of your "�debt,' it is likely that you'll still be responsible for repaying the money for those items. In most cases, what you are attempting to do is obvious.

Decide whether you want to file for Chapter 7, or Chapter 13 bankruptcy. As an individual, you may do either one. Find out as much as you can about each type of bankruptcy, so you are able to make a choice that you can live with in the future.

find more information throw in the towel. You can often have property returned to you. Autos, jewelry and even electronics that have been repossessed, could be returned. If you have property repossessed less than ninety days prior to filing your bankruptcy, you may be able to get it back. Speak with your attorney about filing the correct petition to get your property back.

Don't wait too long to file for bankruptcy. So many people suffer with debts, and sleepless nights for years. They could have filed for bankruptcy, and been in the clear by now. If you are thinking about filing for bankruptcy, time is of the essence. Make the decision so you can move on that much quicker.

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.

You do not need to be bankrupt to file for personal bankruptcy. In 1898 the term was changed from "bankrupt" to "debtor" so that people could more readily understand that an inability to pay bills is the main qualifying factor in filing for personal bankruptcy. Most people who file are not, in fact, completely bankrupt.

If you are sure that you are going to file for bankruptcy, you should stop making any payments towards debts, that will be discharged during the bankruptcy process. Since you will not be liable for these debts in the near future, it is of little benefit to you to keep making payments towards them. It would be more beneficial for you to save any spare cash, that you have for future needs.

Start taking visit the following web page 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.

Be completely up front and honest about your situation and assets to avoid 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 that you have listed within the petition. This makes it impossible to remove debts.

Before meeting with an attorney about your personal bankruptcy, get your paperwork in order and have it available. The attorney will need to see all of this documentation to help you move forward. Don't be selective in what you bring! Every document you have that shows finances, assets, debts and credit will need to be considered.


Speak with an attorney. If you're filing for bankruptcy, spending more money is probably the last thing on your mind. Investing in a good attorney, however, can end up saving you a lot of money in the long run. Don't take any unnecessary risks when it comes to your finances.

Pay attention to how you satisfy any personal debts before filing for bankruptcy. Find out from a bankruptcy attorney what a court needs to see as a cut off date for the last time you pay anyone you owe money to. Know what the laws are prior to making any payments.

Although it is tempting to toss out the idea of ever owning credit cards again, think again. Although this may seem plausible, this actually isn't doing them any good. Good credit is needed to make major purchases, such as those for homes and automobiles. However, if you don't use credit, you will be unable to establish a good credit history, which is necessary in order to make those purchases. Begin with a credit card that has the very low limit and handle it extremely responsibly to begin healing your credit rating.

Understand that income tax should not be paid on any sort of debt discharge. This will save you a lot of money when it comes time to pay your taxes. Be sure to check with a tax specialist before you submit your taxes, in order to; make sure you're within the legal boundaries.

As you can see, just by reading this article, the thought of bankruptcy is not as scary and confusing as it once seemed. Hopefully, the information that was presented to you has helped shed some light. If you feel that bankruptcy is right for you, remember the information from this article, as you take the next steps.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Comments on “Things You Had To Know Before You File Personal Bankruptcy”

Leave a Reply

Gravatar