Filing for personal bankruptcy protection is an important strategy for people that have had assets, such as their vehicle, seized by the IRS. Bankruptcy will hurt your credit, this is true. However, it may be the only viable option available to you. Review this article for information on filing for bankruptcy and what effects it can have on your life.
Most people end up filing for personal bankruptcy because they owe more than they make. If you find yourself needing to file for bankruptcy it is important to familiarize yourself with the state laws. There are greatly varying laws concerning bankruptcy, so it is important to make sure you are getting the correct information. You may find your home is safeguarded in one state, while in another it isn’t. Be aware of bankruptcy laws before filing your claim.
Before you proceed with your personal bankruptcy case, review your decisions to be certain that the choice you are making is the right. You have other choices, including consumer credit counseling. Bankruptcy has a negative effect on your credit reports, in that it is permanently there. Before you take this step, make sure all your options have been considered.
Always be honest with the information you give about your finances. Don’t hide income or assets from your lawyer or the bankruptcy trustee or you may find yourself in legal trouble.
Keep at it! Filing for bankruptcy may allow you to get back property, such as an auto, jewelry, or electronics, that you may have had repossessed. If the repossession occurred within 90 days from your filing date, it is possible that some of your property can be returned to you. Speak with your attorney about filing the correct petition to get your property back.
If bankruptcy is an option for you, secure the services of an attorney. It is difficult to make all of the necessary decisions yourself, and expert guidance will be helpful. A personal bankruptcy lawyer will be able to help you and ensure you are doing things the proper way.
It is wise to meet with several lawyers before making a final decision, take advantage of the free consultations to find one that is a good fit for you. Meet with the actual lawyer, not a paralegal or assistant, as they’re not allowed to give out legal advice. Seeking out different attorneys is all part of the process until you find someone that you can trust.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy might be a good option, so don’t overlook it. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. Chapter 13 bankruptcy permits you to remain the owner of your properties, while allowing you to repay your debt using a debt consolidation loan. The plan is usually for a term of three to five years, and a discharge will be granted at the end of that term. However, if you miss even one payment, the court will dismiss your entire case.
Think about all your options before pulling the trigger. Talk with a bankruptcy lawyer and ask about alternatives, such as debt consolidation or negotiating with creditors. Loan modification plans on home loans are a great example of this. Sometimes your lender will work with you to help pay off your debt by giving you a lower interest rate, forgiving late fees, or extending the time period of your loan. Remember that creditors desire to get paid and usually debt repayments are often preferable when dealing with bankrupt debtors.
Keep in mind that filing for Chapter 7 bankruptcy may affect other people than just you, including family members, and in some cases, business associates. Once you file for Chapter 7 bankruptcy protection, you no longer have legal responsibility for debts that you and any co-signers originally agreed to. However, the creditors could come after your co-signer and demand full payment for the debt.
During a Chapter 13 bankruptcy, you may still be able to get a mortgage or car loan. There are extra hoops to jump through. Your trustee must approve any new loans. You will need to make a budget and prove that you will be able to afford your new loan payments. They may also want to know why you believe you need the loan.
Try your hardest to present a complete representation of your current financial situation. If you forget to add these, your petition could be delayed or dismissed. No sum is too small to be included; err on the side of caution and include everything. Some things to be included are: current loans, valuable vehicles and side jobs.
Personal Bankruptcy
Research your state’s bankruptcy laws before filing your petition. The code governing personal bankruptcy is a complex area that is subject to much misunderstanding. It is even possible for your whole petition to be thrown out of court due to errors being made. Spend some time learning about personal bankruptcy. That way, you will have an easier road.
The introduction to this article made it clear that filing for bankruptcy is always on the table if you are chest-deep in debt. But, you need to look at all of your options rather than jumping into bankruptcy head first. Bankruptcy has negative ramifications that can effect you for awhile. Learning how to manage this situation can minimize your headaches and prevent repossession of valuable property.
This is a limited-time offer. We are not able to guarantee availability if you wait!
