Filing for personal bankruptcy protection is an important strategy for people that have had assets, such as their vehicle, seized by the IRS. Your credibility with lenders will take a beating, but sometimes bankruptcy is the only thing you can do. You can find out more about filing for personal bankruptcy, as well as the consequences of this action, by reading the information presented here.
Before making the decision to file for bankruptcy, be sure to do some research and learn all you can about the subject. There are many websites available that offer this information. The United States D.O.J., the A.B.I and the N.A.C.B.A. are all useful organizations willing to provide educational material. You need to spend some time gathering valuable information so you can file your bankruptcy with confidence.
Credit Card
If you are thinking about paying off your tax obligations with a credit card and then filing bankruptcy, think again. Most of the time, you cannot discharge this debt. As a result, you will owe the IRS a lot of money. Generally speaking, debt incurred to pay taxes and the tax bills themselves are treated the same in a bankruptcy. So, there is no reason to use your credit card if it will be discharged in the bankruptcy.
Consider all options before deciding to file for personal bankruptcy. Look into credit counseling to see if it could help you work out of your debt without bankruptcy. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
Never lie about anything in your bankruptcy petition. Do not hide any income or assets or go on a spending spree before filing for bankruptcy: the court will find out and will not have a positive opinion of you.
Once you file for bankruptcy, you will have a hard time getting loans or credits. If this happens to you, think about applying for a couple of secured credit cards. This demonstrates to creditors that you are making a good faith effort to repair your credit. After some time passes they may be willing to offer you unsecured credit.
Before making the decision to file for bankruptcy, be sure you have considered alternative options. For example, if you only have a little bit of debt, you might be better off if you went through consumer credit counseling. Negotiating with creditors is another option, but creditors are notorious for “forgetting” these agreements, so get them in writing!
Most bankruptcy lawyers offer a free consultation, so meet with several before you decide on one. By law, paralegals and assistants can not give legal advice, so be sure that you are meeting with an actual attorney. Taking the time to compare lawyers will ensure that you get a person that you can be yourself around.
Learn the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Investigate the benefits and pitfalls of both. Online resources may be able to provide all the information you need. Once you have done your own research, be sure to review your findings with your lawyer, who is the expert. This way, you can be sure of making a well informed choice.
You can still take out a car loan or mortgage while you are in Chapter 13 bankruptcy. However, it will be a longer and more arduous task. You need to speak with your trustee so that you can be approved for a new loan. Create a budget and prove you can afford a new loan payment. You also have to prepare yourself to explain the reasons you need to buy the item.
Be certain to have a good understanding of bankruptcy regulations prior to filing a petition. You should not transfer your assets to anyone in the year preceding your bankruptcy filing. In addition, it’s unlawful for a filer to acquire more debt on their credit cards before they file.
Do a little bit of research into the regulations having to do with filing for bankruptcy before you begin the process. There are many traps in the bankruptcy laws that could trip up your case. If you make an egregious mistake, the judge might even dismiss your case. Spend some time learning about personal bankruptcy. The entire process will be much easier when you move forward with awareness.
Compile a list of the money your currently owe. This will be your basis in filing for bankruptcy, so see to it that you write down all of the debts you’re aware of. Be sure you’re going through every record so you can be sure you’re getting the right amounts. Any inaccuracies or discrepancies can lead to a dismissal of your petition.
Be honest no matter what happens during your filing for bankruptcy. The worst thing that you could do is to lie about your assets and debts. There is no legal way to get around it. If you lie when it comes to your assets and debts, you might end up going to prison.
Chapter 13
After you have filed for chapter seven bankruptcy, you may find that you are not qualified to take the homestead exemption. If this is the case, you may wish to file for chapter 13 bankruptcy in regards to your mortgage. Sometimes it is better to switch the whole Chapter 7 case to the Chapter 13 case. Speak with your attorney for advice on this.
It goes without saying that, bankruptcy is always available as an option. Just be sure that you do not use it as your first choice. Reading up on the right ways to handle your situation will save you a lot of headaches in the long run.
This is a limited-time offer. We are not able to guarantee availability if you wait!
