Finance

Bankruptcy 2023: The Impacts Of Filing for Bankruptcy

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Bankruptcy And Your Credit: The Impacts Of Filing for Bankruptcy

If you want to make sure that you do not become bankrupt, then you are in the right place. Many people are struggling with these harsh economic times, and find themselves thinking about filing bankruptcy.

Do not file bankruptcy, do what you can to secure your finances. Read the tips in this article to have a promising future, know the impact of filing for bankruptcy and what you should know.

The Impacts Of Filing for Bankruptcy

Don’t delay filing for bankruptcy as long as you can. The longer you wait to file, the more debt you will incur and the more devastating the results will be. If you feel that your options are slim and you don’t feel that you can seek credit counseling, file for personal bankruptcy as soon as you can.

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Be honest with yourself; however, honesty in filing is also paramount. You must not try to hide side income or assets that you do not want the courts assessing.

This will fail and leave you in a position of having a denied petition from the court. In addition, you can lose your rights to re-file on the debts you petitioned at the time.

Do your research before choosing a bankruptcy lawyer. Take advantage of free consultations, and meet with several different lawyers before picking one to work with. Make sure that you choose an experienced attorney who is knowledgeable about the local laws, the preferences of trustees, and has a good working relationship with local judges.

Filing For Bankruptcy: What You Should Know

Bankruptcy And Your Credit: The Impacts Of Filing for Bankruptcy
Bankruptcy filing form.

Here are some thing you should know about filing for bankruptcy. Read these tips carefully:

  • Hire an Attorney/Lawyer

The best thing you can do when filing for bankruptcy is to hire an attorney. In addition to providing you a free consultation, an attorney takes care of handling all the necessary paperwork in the appropriate time frame and deals with creditors for you throughout the process.

An attorney just makes the whole process easier. Even though they can be expensive, bankruptcy lawyers are invaluable during the bankruptcy process.

  • Seek Help

One of the biggest problems that people face when filing personal bankruptcy is they are in too deep before they seek help. They have borrowed against 401 K’s, IRA’s, and sold personal belongings. These things have unintended consequences. These loans are not allowable deductions in the eyes of the court and will not be used in the bankruptcy calculations.

  • Don’t Circumvent the Court

Do not try to circumvent the courts by repaying loans, or giving money to relatives, and loved ones. Once you file for bankruptcy, your financial records are wide open. You are obligated to report everything you have given away, and sold in the past two years. Protect yourself, and talk to your lawyer about what to do with your money.

  • Talk with your Creditors

Before filing for bankruptcy, talk with your creditors and see if there is anything that can be done to reduce the amount of your debt. Most creditors will work with you because they want you to pay them back their money. If you actually file for bankruptcy, they will lose their money.

  • File the Proper Bankruptcy

Decide which chapter of bankruptcy you need to file so you can retain as much of your assets as possible. Depending on your situation, filing a chapter 7 bankruptcy may be right for you, as you are able to keep most of your assets.

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However, other types such as chapter 13 may be better since you can restructure your debt into affordable payment. If you have fallen behind on your taxes, Chapter 13 bankruptcy may be the best thing for you to do.

Doing so will help stop the interest and penalties from adding up even more. Chapter 7 is not the way to go when dealing with a pile of back taxes. That debt will still be owed after the bankruptcy is complete.

Summing Up

With all of the advice you gained today, there should be no reason as to why you have to file for bankruptcy. You now have ideas about how to avoid and get around putting yourself in financial disaster.

Use what you learned today. Plan out your future finances, in order to avoid being put in this position again.

Do you want to contribute or want to comment? Feel free to share your thoughts in the comments section. Keep following Ayomikun Abraham’s Blog for more awesome articles on bankruptcy and finance. Thanks for reading.

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