Debt is one of the scariest things to live with. Once you realize how much in debt you are, it can make you lose your focus on everything else in life. If you’re not careful along the way, debt can be a complicated process to get out of. This article will provide suggestions on handling bankruptcy if you find yourself completely overwhelmed.
Make sure that you are prepared in the event that your bankruptcy petition is rejected. If you are prepared prior to going in, it will be easier for you to anticipate the things that could happen if ever you are denied.
Those wanting to file for bankruptcy should not give their assets to another person within a year of filing. This may be construed as an attempt to conceal your assets. The end result may be your filing will face dismissal. Certain assets are untouchable by creditors. Despite this, you should never hide your assets like this; therefore, you should ensure that you wait over a year prior to filing if you’ve transferred your assets.
No matter how messed up things are as you file for bankruptcy, it is important that you stay honest. Lying about your assets and debts can get you into serious trouble. Doing this is against the law. If you lie when it comes to your assets and debts, you might end up going to prison.
It is essential to always be candid in your bankruptcy petition and subsequent documents. An attempt to hide anything from the court can cause the court to turn down the petition immediately. Be sure to have proof of income and assets you may have, if it is pertinent to your case. This will show the court that you can be trusted and helps them make the right decision.
Before you file, make sure you understand the laws as much as possible. For instance, it’s prohibited for an individual to transfer assets to someone else a year before filing for bankruptcy. Other laws you need to know include debt-based regulations. You cannot increase debt via credit cards prior to filing a claim. Your finances basically have to remain frozen.
In the event your bankruptcy case gets dismissed due to your own error, it is possible to re-file. Generally, you are only granted an automatic 30 day stay if your case is dismissed. There is a chance that you could get this extended if you can show the judge a good cause of your error and why you are subsequently re-filing.
Don’t forget to enjoy your life once your finances get fixed. The process of filing for bankruptcy can make people a nervous wreck. Make sure you take care of your part and let your attorney do the rest. Bankruptcy is hard to go through, but you must remember that a less stressful, more enjoyable life is waiting on the other side of it.
It is in your best interest to be abreast of your rights in petitions for bankruptcy. It is not unusual for creditors to claim that their debt is not able to be discharged. However, there are few debts that cannot be eliminated, like student loans and child support payments. If a collector tells you your debt won’t be discharged in your bankruptcy and you know that it will, report the collector to the attorney general’s office in your state.
Don’t delay a personal bankruptcy filing if it’s unavoidable. After you have carefully considered all other avenues, there is no reason to put it off. Your financial position will grow more and more stressful the longer you drag your feet. That can negatively affect your life. The earlier you file, the better it is for you.
Before picking a bankruptcy lawyer, speak with more than one, since most offer a consultation for free. It is important to meet with the actual lawyer, because paralegals or assistants cannot give you legal advice. Taking the time to compare lawyers will ensure that you get a person that you can be yourself around.
Sometimes you get overwhelmed with life and you feel as if there’s nothing that you can do about it. This article just gave you a few good pointers on what you can do in order to gain control of your finances when facing bankruptcy. Apply the advice from this article and you will be on your way to realizing financial freedom.