Techniques For Getting The Most Out Of Filing Bankruptcy

July 15, 2013

TIP! If you are in a position where you are unable to pay your debts, bankruptcy may be the only option for you. If you’re in this position, it is a good thing to familiarize yourself with the laws that apply in your area.

When someone files for bankruptcy, it’s not a good thing. A lot of people feel ashamed and embarrassed about filing for bankruptcy and do not want to deal with their situation. But don’t surrender; this article can be a guide to avoid bankruptcy, or to handle it more easily if you do need it.

TIP! Do not use a credit card to manage your tax issues and then try to file bankruptcy. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS.

Always be honest and forthright when it comes to your bankruptcy petition. As long as you are not hiding income or assets from the courts, you can ensure that there are no difficulties with your petition. This will save you from having your petition dismissed and your debts dropped from re-filing.

TIP! Don’t look at bankruptcy as a first step. Look at all the other options you may have first.

The best way to build your credit up after a bankruptcy is making all your payments on time. This being the case, look at secured card options. This will be a demonstration of the seriousness with which you view rebuilding your credit rating. After some time passes they may be willing to offer you unsecured credit.

TIP! When it soaks in that filing for personal bankruptcy, don’t use all of your retirement funds, or all of your savings to resolve insolvency or pay creditors. Retirement funds should be avoided at all costs.

If a personal recommendation comes your way, this should be a lawyer you focus on. There are lawyers out there who will take advantage of your financial state and not deal honestly with you. Make sure your filing process goes as well as possible by finding a trustworthy lawyer.

TIP! Do not be afraid to remind your attorney of important specifics of your case. It is wrong to assume that your lawyer will remember every word you ever utter! Do not hesitate to speak up; this is your hearing and your future is on the line.

Don’t file for bankruptcy until you know what assets of yours can and can’t be seized. To find an itemized list detailing assets exempt from bankruptcy, find the Bankruptcy Code. Prior to filing for bankruptcy, it is critical that you go over this list, so that you know if you can expect any of your most valuable possessions to be seized. If you do not read this list, you could be in for some nasty surprises in the future, if some of your most prized possessions are seized.

TIP! Don’t hide assets or liabilities when filing for bankruptcy. Penalties may include fines, imprisonment or denial of the filing.

As you can see, you don’t need to surrender to bankruptcy. The advice in this article will be valuable as you work to find another financial path. Apply what you’ve learned here to make changes in your life that will not hurt your credit.