If bankruptcy has you feeling depressed, seek out support from bankruptcy forums on the internet. It goes without saying that there’s a lot of stress involved with bankruptcy. It can put a big strain on your personal relationships. You may share your struggle online and even others who’ve already been through it for advice on coping with the challenges.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. There is a wealth of information online about each type of bankruptcy and their respective pluses and minuses. If you don’t understand the information you researched, consult with your attorney about the details before you decide which type of bankruptcy you want to file. After you have concluded that bankruptcy is the alternative you need, begin studying the various laws in your state and how they apply to you. Your future depends on you knowing as much as you can and you being personally involved with your bankruptcy.
Do not attempt to pay your taxes with your credit cards and subsequently file for bankruptcy. In most states, you will still owe money to the IRS and have to take care of the interest of your credit cards. Should the tax be dischargeable, the debt is often dischargeable as well. So as you can see, in this situation there is no need to use the card when the debt will be discharged when you file for bankruptcy. Make sure the paperwork you file is accurate. Even when your attorney fills out the paperwork, you are responsible for ensuring all your information is accurate. Remember that attorneys are dealing with several cases at once, so remember all necessary details. Don’t depend too heavily on your attorney, and make sure that you double check every item of paperwork that is filed for you.
Protect your house. Filing for bankruptcy will not always result in losing your home. Depending on certain conditions, you may very well end up being able to keep your home. Another option is the homestead exemption that has certain income and financial requirements, but may also allow you to keep your home.
Always research first. If you are going to file personal bankruptcy and can’t afford a lawyer, you may be tempted to do-it-yourself. If this is the case, you must fully educate yourself about bankruptcies. Those who attempt to file on their own often make mistakes that ruin their chances of receiving a discharge. Make sure you do everything correctly so that does not happen. 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. It is vital that you completely understand which assets are protected and which assets can be seized prior to filing bankruptcy. Failure to do this could cause some ugly surprises down the road when you discover that your valuables must be seized. When consulting with your bankruptcy lawyer, be sure to disclose all of your significant debts. That means you need to tell him about credit cards, lenders and hospitals, but you also have to mention money you need to repay to friends and family. When talking to a bankruptcy attorney, you must tell them all of the creditors you owe large amounts of money to. You probably know that you need to disclose consumer debt and medical debt, but you might not realize this means you need to disclose any debt you owe individuals, as well, even family. Be prepared for the possibility that your bankruptcy filing could be denied by the court. You can determine what you will do about your mortgage and car payment in advance, if you are prepared for possible rejection. Make sure your debts are dischargeable in bankruptcy before you file. Certain classes of debt, including taxes, child support, and student loans, are not eligible for bankruptcy. Instead, credit repair agencies or a loan consolidation service should be used for reducing debt.