It is important to protect your home when filing bankruptcy. You do not have to lose your home in the process of a bankruptcy. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. You may also want to check out the homestead exemption because it may allow you to keep your home. A great personal bankruptcy strategy is to be prepared always in the case of when your bankruptcy is denied. By keeping all of the possibilities in mind, you can prepare yourself for any eventuality. For example, if your petition is denied, your car may be repossessed, or your home may be foreclosed upon.
Although the entire process can be stressful, do not allow the stress to take over. It is common for people to stress when filing. This kind of stress can take a heavy toll on your personal life, especially if you are not making any efforts to adopt a positive attitude. 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.
Make sure you know the bankruptcy laws before filing your petition. There are many laws which govern bankruptcy; therefore, to protect your bankruptcy case, know the rules. Some mistakes could lead to having your case dismissed. Make sure you have a decent understanding of the bankruptcy process before you proceed. Doing so will make the process a lot easier.
Don’t take out big cash advances from any of your credit cards prior to filing for bankruptcy, taking advantage of the fact that those debts will later be erased. This will be viewed as fraud, and you may be held responsible for the balances despite your bankruptcy filing.
Write down every debt you have. This will be the basis for your bankruptcy filing, so make sure you include all the debts you are aware of. Obviously, you’re going to want to leave no stone unturned. Rummage through your files and records and receipts to come up with precise numbers. Take your time with the process of filing for personal bankruptcy. It is important that all of the numbers and debts included in your case be included accurately.
Exercise extreme caution when taking on any debt after you have filed bankruptcy. There are lenders out there who will try to tempt you with high interest loans and credit cards which are directed towards people who have gone through the bankruptcy process. Read the fine print, the interest rates are likely outrageous. It can continue a vicious cycle of debt that only sound financial thinking can prevent.
There are some debts that a bankruptcy will not eliminate. Debts like student loans will stay on your credit report no matter if you file or not. Instead, credit repair agencies or a loan consolidation service should be used for reducing debt.
Even people who have had assets, such as a car, seized for back tax debt can file for bankruptcy. Bankruptcy is a major life decision, but sometimes it can be the right choice. The article below discusses some of the pros and cons of filing bankruptcy.