The mere thought of bankruptcy is enough to strike fear into the hearts of people. Not being able to provide for their loved ones and debt that continues to mount is an issue for many. If this scares you, or you are experiencing this living horror, then this advice will be of use to you.
Don’t use a credit card to pay off your taxes before filing for bankruptcy. In some places the debt can not be discharged, and you may still need to pay the IRS afterward. Should the tax be dischargeable, the debt is often dischargeable as well. So it does not help you to put the tax bill on your charge card if you know the debt will be discharged anyway.
Never lie about anything in your bankruptcy petition. Withholding or lying about certain information can seriously worsen your financial situation. It could lead to being unable to file for bankruptcy or even legal trouble.
Unsecured Credit
After a bankruptcy, you may still see problems getting any kind of unsecured credit. If that is the case, you should try applying for one, or two secured cards. This will be a demonstration of the seriousness with which you view rebuilding your credit rating. Eventually, you could be able to obtain unsecured credit.
When choosing a bankruptcy lawyer, your best option is to find someone who is recommended by someone you know versus someone who you find online or in the phone book. There are so many dime-a-dozen companies out there who make it a practice of preying on financial desperation. You need to make sure your bankruptcy goes smoothly, so find someone you know you can trust.
If you are planning to file for bankruptcy, be sure to learn what types of assets you will be able to keep and which can be seized. The federal statutes covering bankruptcy can tell you exactly which assets are exempt from forfeiture to pay off creditors. You need to compare this list to the assets you own so that you are not surprised when certain assets are seized. If you are not aware of the rules, you could be setting yourself up for a lot of stress when your most important possessions are taken in the bankruptcy.
Never give up. Filing for personal bankruptcy may possibly enable you to reclaim your personal property that have been repossessed, like your car, electronics and jewelry items. You may be able to get your property back if fewer than 90 days have passed between the repossession and are filing for bankruptcy. Speak with a lawyer that will provide you with guidance for the entire thing.
If you’re going to file bankruptcy, you need an attorney. Bankruptcy is complicated, and having someone to help you navigate the process is crucial. An attorney specializing in personal bankruptcies can assist and make certain things are being handled correctly.
Chapter 13 Bankruptcy
Consider filing for Chapter 13 bankruptcy. In most states, Chapter 13 bankruptcy law stipulates that you must have under $250,000 of unsecured debt and a steady income. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. These kinds of plans usually range across 3, 4 and 5 years. Once this is done, all your unsecured debt will get discharged. Just know that missing one payment could cause your case to be dismissed.
If you are making more money than you owe, bankruptcy should not even be an option. Although bankruptcy may feel like a simple method of getting out of your large debt, it leaves a permanent mark on your credit history for up to 10 years.
It is important to be upfront with all your financial information when filing for bankruptcy. You can delay your bankruptcy process if you do not add in all important information. It does not matter what you think of your financial situation, put the sum amount either way. Include all jobs, assets and loans.
Bankruptcy can be quite frightening, so it is understandable that many people are afraid of it! You may have lived in fear of it before, but you no longer have to now, thanks to this article. Take these bankruptcy tips to heart and start improving the lives of you and your family members.
This is a limited-time offer. We are not able to guarantee availability if you wait!
