Filing for bankruptcy is not a simple process. Several different types or “Chapters” of bankruptcy are available to you. Depending on the state of your finances and the type of debt that you have accrued, you may qualify for one type of bankruptcy, but not another. The most important step you can take, of course, is to learn what you can about the process before ultimately deciding one way or the other. Check out the tips listed below if you want some solid info on the subject.
Don’t file for bankruptcy the income that you get is bigger than your bills. Bankruptcy may appear like the easier way to avoid paying your old bills, but it is a huge mark on your credit score and remains there for up to 10 years.
Don’t assume that all of your debts will automatically be dismissed when you file for Chapter 7 bankruptcy. Some debts might have to be reaffirmed. That means you need an entirely new agreement for paying them back, and other debts are simply not able to be discharged. You cannot get child support, court sanctioned fines and alimony payments dismissed through Chapter 7.
If you’re planning on filing bankruptcy, be sure that you don’t transfer your assets to another person within 12 months of the date you file. That can be seen as trying to hide assets, and that might cause your entire case to be dismissed. Depending on the asset, it may be safe from creditors, in any case. Regardless, hiding assets in this manner is never acceptable, so make sure to wait to file if you have recently transferred any assets.
An excellent bankruptcy suggestion is to make sure you are prepared for the possibility if your bankruptcy claim is denied. If you are prepared ahead of time, you can have an easier time anticipating what might happen if denial happens, which could result in foreclosure or repossessions.
Prior to filing, do not use your credit card to get a cash advance, knowing your debts will be eliminated. To do this would be considered fraud. Even after filing for bankruptcy, you might be forced to repay money gained in this manner.
When things look like bankruptcy might be your only option, start reading everything you can about bankruptcy laws in your state. Remember that the future of your family could depend on this decision; get help from a specialized lawyer to go through this procedure as smoothly as possible.
Now you know that filing for bankruptcy is something to be considered before going through with it. If you think it is the right choice for you, find a lawyer that can properly guide you through the process and give you a new leash on life.