When you start the process of filing for bankruptcy, you are making the claim that you do not have the money you need to pay your bills. The reasoning behind the lack of funds, does not play any role in the court's decision to accept your petition. Use the tips below to help you through this difficult and confusing process.
No matter how trivial you may think it is, all income should be reported in your bankruptcy filing. You can create issues in your bankruptcy if your income information does not flush with bank and finance records. Be sure to include all incomes within the household that can be considered part of your normal income.
A great tip for filers of personal bankruptcy is to thoroughly prepare for the initial meeting with the bankruptcy attorney. By assembling every piece of relevant financial documentation, including mortgage documents, auto finance agreements, credit card statements, tax records and bank statements, you can be certain that your bankruptcy petition and supporting documentation includes all information required for a comprehensive filing.
When you file for bankruptcy you limit your options for many future loan options. Many banks do not forgive bankruptcy and it shows on your credit report for 10 years. Think twice before making the decision to file for bankruptcy. You might want to defer your bills for a couple of months, instead of hurting your credit for 10 years.
Make sure to list all creditors and debts on the bankruptcy application. This includes all credit cards, even if you do not currently have a balance on it or intend to keep the account active post-bankruptcy. Failing to provide this information is a mistake that can cause the court to dismiss your filing, which often means that you cannot re-list any of the same assets on future filings.
Evaluate your consultation with any lawyer by the way he or she handled the consult. Consider the length of your consult. If it lasted less than 15 minutes or it was with an assistant rather than an actual lawyer conducting the consult, this could signal that lawyer is probably not the best choice. You want someone that takes the time to handle your case personally, and you want to get your money's worth. You should also shy away from those lawyers who pressure you with phone calls or try convincing you immediately after a consultation by getting pushy.
If you are over the age of 55 and filing for bankruptcy, you are not alone. In fact, this age bracket is the most likely to file. Luckily, retirement savings held in retirement accounts and IRAs are not in danger of being depleted in bankruptcy filings under one million dollars.
The best plan for dealing with bankruptcy is to avoid it in the first place. Probably the best way to prevent financial problems is to plan ahead and have adequate savings to fall back on. Most financial experts advise their clients to keep a savings account of at least three months income.
Take note of any tip you found to be especially helpful here. Print a copy to keep on your desk as you prepare to file for personal bankruptcy. This will make it easy to benefit the most from the information learned here. It is the details that are missed that may hurt you the most, so be sure to be careful when filing.