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Things You Need To Know Before You File Personal Bankruptcy


There are few financial decisions more momentous than determining whether or not it is time for a bankruptcy filing. Therefore, it is very important to understand what you are doing when you file for bankruptcy. What you’ll read in the article below can help you tremendously when filing a claim. Making the decision to file for bankruptcy isn’t a light one. Use the information provided below to take the correct steps.

It is important to make sure all the information contained in your filing is complete and accurate. Even though you might have a lawyer fill out your paperwork and file it, you are personally responsible for making certain that all information within the documents are accurate. Remember that you are not your lawyer’s only client. There may be times when your lawyer could become confused by the many details inherent in bankruptcy law. Because of this, you should verify that all information is accurate on every piece of paperwork filed on your behalf.

Paying your bills in a timely manner can help you avoid late fees, penalties, high interest rates and the need to file for bankruptcy. Also, making a larger payment than the minimum allowed is a great way to go. This can help you stay above water by paying off your bills quicker. Paying the minimum and blowing the rest of your money could result in falling behind again.

When you have reviewed all of your options and found that bankruptcy is the only viable one, be sure to find out everything there is to know about bankruptcy laws in your state. Be candid with your attorney and stay involved in the process to ensure a healthier financial future.

After your bankruptcy goes through, avoid taking on new debt. You are likely to receive lots of offers for “fresh start” loans and credit cards pretty quickly after your bankruptcy is complete. This sort of loan and credit card usually carry an extremely high rate of interest. They can get you back into the same hole you just crawled out of, so practice good money management.

Don’t take big cash advances off your credit cards in the days prior to filing for bankruptcy. Not only is this fraud, but you could end up having to pay back the money, even once you have filed for bankruptcy.

Before you file for bankruptcy, carefully consider if it is the right option for you. You have better options. For example, you could try credit counseling. Since your credit history will forever note the bankruptcy, you want to make sure that you have tried everything else before you take an action such as this, in order to minimize the effect it will have with regard to your credit history.

Don’t take too long when trying to decide whether you want to file bankruptcy. As with anything in life, putting off important things such as debt repayment can snowball quickly out of control. By speaking with a professional in a timely manner, you can get good advice before the bankruptcy process gets too difficult.

Bankruptcy laws are very exact and very important, so ensure that you’re well aware of all current laws before you file a petition. As an example, it is prohibited for someone to transfer assets from the filer’s name for one year prior to filing. Also, you must never incur significant new obligations must prior to filing for bankruptcy.

As seen in this guide, there are lots of ways on how you can file for personal bankruptcy. You may become overwhelmed with the process. If that begins to happen, always refer back to these tips. Take the time you need to think clearly and analyze the information. You are sure to make thoughtful and beneficial decisions this way!