Things You Need To Know Before You File Personal Bankruptcy

The circumstances that culminate in a bankruptcy filing are likely unpleasant, though they do not need to define the rest of your life. The main purpose of filing is to start a new and improved financial situation. Completing the bankruptcy process properly can lead to a new financial future.

Be sure to bring anything up repeatedly if you are unsure if your lawyer is focusing on it. Don't assume that he will remember something you told him weeks ago. This is your bankruptcy case, so do not be afraid to remind your lawyer of any key facts.

It is essential when going through bankruptcy that all of your income and assets are reported openly and honestly. Not only is hiding income and assets wrong, it is also a crime.

Do not pay your taxes with credit cards that will be canceled when you file for bankruptcy. You will find few states that discharge this kind of debt. You may also wind up owing a lot of money to the IRS. Generally speaking, debt incurred to pay taxes and the tax bills themselves are treated the same in a bankruptcy. Therefore, you should not pull your credit card out for purchases if it is just going to be discharged during the bankruptcy.

There are two types of personal bankruptcy: Chapter 7 and Chapter 13. Make sure you know what each entails so you can make the right choice. Every one of your debts will be gone if you decide to go with Chapter 7. This includes creditors and your relationship with them will become no longer existent. Chapter 13 bankruptcy allows for a five year repayment plan to eliminate all your debts. Look into both types of bankruptcy before deciding which one would suit your particular needs.

Investigate any new laws before deciding to file a bankruptcy. Bankruptcy laws are always changing, and you need to be aware of any changes so your bankruptcy can be properly filed. Your state will have a website to check, or a number you can call, to learn the latest changes in the bankruptcy laws.

Learn and gain a firm grasp of the differences in applying for Chapter 7 bankruptcies versus Chapter 13 bankruptcies. Weigh all the information you can find on- and off-line to make an educated decision. Do not hesitate to have your lawyer explain any details that seem difficult to grasp. This will help ensure you make the right choice when filing. Don't hide from your friends and family while you go through bankruptcy. The process for bankruptcy can be hard. The long process can leave people stressed out and racked with guilt and shame over having their financial affairs laid out for everyone to see. Many people decide to hide away from the world until the process is over. Pulling away from people who care for you will not help the situation, and can cause your negative feelings to intensify. Therefore, it is important that you continue to spend quality time with your loved ones despite, in spite of your current financial situation.

As you read in the beginning of this article, bankruptcy is not something anyone looks forward to. But, that does not mean that your post-bankruptcy life cannot be fantastic. Follow the advice from this article, and use personal bankruptcy to get your fresh start.