It can be a difficult process to file for bankruptcy. There are different types of bankruptcy, and the type that you choose depends upon your personal finances and the nature of your debts. It’s imperative that you learn everything you can about the process before you even think about filing. This article will help you learn more about personal bankruptcy.
Filing for bankruptcy isn’t something to be ashamed of. It is common for people to suffer from depression and feelings of failure if they end up needing to file for bankruptcy. Remember that, no matter how difficult it can be, filing for bankruptcy is the step you must take toward regaining your financial footing and setting yourself up for success in the future.
Do not use credit cards for cash advances prior to filing a bankruptcy petition, as it can affect the dischargeability of the debt. To do this would be considered fraud. Even after filing for bankruptcy, you might be forced to repay money gained in this manner.
Get the word “shame” out of your head when filing for bankruptcy. Filing for bankruptcy leads people to feel all sorts of emotions like shame, guilt and feeling irresponsible. Try not to give in to these feelings, as they are of no help to you and they can affect your emotional health. The best way of dealing with bankruptcy is to keep a positive attitude during this time of financial upset.
If you plan to seek bankruptcy soon, prevent using a credit card. While you may think that you will soon be able to write off that debt, it will quickly come back to bite you when the court looks at how financially irresponsible you have been. Try to be financially responsible. Now is the time to develop better financial habits for later.
A useful tip is to make sure you are ready for the possibility that your case is dismissed. By considering the worst-case scenario that could occur following a failed filing, (e.g. home foreclosure or repossession of your assets) you can make contingency plans and be better prepared.
If you will be owing taxes, do not think bankruptcy is an easy escape. Some people use a credit card to pay taxes, and shortly thereafter, they file for bankruptcy. The reason for doing this is that they assume that it is possible to avoid paying taxes because the balance is in the form of a credit card balance. The laws governing bankruptcy forbid this practice and you will be left with both your tax and credit card debt.
Always research first. If you need to file for bankruptcy and you can’t afford an attorney, you may wish to do it yourself. If you do, remember to educate yourself on things that you should know. Many people who file themselves make crucial errors that keep them from getting a discharge. Do everything the right way so it all goes through as it should.
When filing for Chapter 7 bankruptcy, you should never automatically think your debts will be dismissed. Certain debts are secured and will have to be reaffirmed through a new agreement: for instance, student loans cannot be erased by filing for bankruptcy. For instance, you can’t get rid of alimony, child support or court-ordered fines using Chapter 7 bankruptcy.
Be sure to take care in choosing a lawyer to handle your personal bankruptcy case. You do not want to hire someone who is new to the field of bankruptcy. Ensure that the attorney you choose is experienced and has the proper license. Information on lawyers and their ratings by clients can be found on the Internet.
As you can see, filing for bankruptcy is a serious decision that must be considered carefully before you make it. If you feel that it is your best option for your current financial state, you should contact an experienced bankruptcy lawyer who can advise you in this turning point in your life.