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Advice For People Who Need To File Bankruptcy

If you have more debt than you could ever hope to pay off, you might feel like your life is over. It constantly builds, going from a molehill to a mountain in very little time. You may realize that your options at this point are limited. The following article is some information for people who may need to file bankruptcy and may give some pointers on what to do regarding bankruptcy if you are way over your head in debt BUT please make sure you talk with a professional licensed in this area.

One tip that is very applicable in situations of personal bankruptcy is to be certain of paying debts on time and in an amount greater than the minimum due. Many individuals make the minimum payments, but this can lead to debt.

Protect your home.

Bankruptcy doesn’t always mean you’ll lose your home. It is entirely possible that you will be able to keep your home. This is dependent upon the your home’s value and whether or not you have taken a second mortgage. If this is not the case, find out more about Homestead Exemptions you might qualify for if you meet certain financial requirements.

Before going through the Chapter 7 filing process, ensure that your co-debtors are abreast of any implications relating to this process. You may have your responsibility for your portion of the loan discharged under Chapter 7. Although, your creditors may insist that the co-debtor pay off the entire debt.

Meeting with a bankruptcy attorney

Don’t pay for the initial consultation with a lawyer who practices bankruptcy law; ask a lot of questions. Free consultations are standard practice among bankruptcy lawyers, so interview multiple candidates before making a final decision. The lawyer who properly answers your questions is the one you should hire. You don’t have to make your decision right after this consultation. You could even go to different lawyers for advice.

Consider other options before bankruptcy

Be sure you have no other choice but to seek bankruptcy. Maybe you can just consolidate debt to make it simpler to deal with. A bankruptcy filing takes a great deal of time, and it can be extremely stressful. You will have trouble getting credit down the line. You only want to file for bankruptcy after you have exhausted your other options for dealing with your debts.

Be honest if filing

Always be honest if you file for bankruptcy. Attempting to hide or omit any information from the bankruptcy courts can cause the judge to immediately deny your petition. You must disclose all your assets and any income that relates to the bankruptcy process. When the court sees that you are being honest, it allows them to move forward more smoothly.

Include all of your debts that you wish to be erased on the bankruptcy filing papers. If you don’t include all your debts, the ones you leave out won’t be covered by the bankruptcy. Be certain to list all of your debts so that none that could have been discharged will be overlooked.

No matter what, don’t give up! Filing a bankruptcy petition might facilitate the return of your property, including cards, electronics or other items that may have been repossessed. You may be able to get your property back if fewer than 90 days have passed between the repossession and are filing for bankruptcy. Consult with a lawyer who can help you along with filing the petition.

Don’t pay tax requirements with your credit cards with the thought of starting the bankruptcy process afterward, without doing your research first. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS. Should the tax be dischargeable, the debt is often dischargeable as well. Thus, it doesn’t make sense to use a credit card when it is going to be discharged when you file for bankruptcy.


There are often times when you feel that you have very little control over what is happening to you. Apply the advice for people who need to file bankruptcy to help yourself better understand filing for bankruptcy. Incorporate the advice given and see how it can make a huge change in your life. Most importantly, consult with licensed professionals if you are considering filing for bankruptcy.