Facing repossession of your valuable items, like vehicles or jewelry, can make you feel very afraid of the Internal Revenue Service. Put a stop to harassment by creditors and blaze a trail to a new financial future by declaring bankruptcy. This article has tips that can help you through this complicated journey.
The most important tip a person filing for personal bankruptcy can remember and follow is to be completely transparent in all dealings. You might feel tempted to not declare certain assets in your bankruptcy in order to protect them from forfeiture, but if you’re found out, the process could take longer, or worse, you might be banned from filing for bankruptcy completely.
Personal Bankruptcy
When a bankruptcy is imminent, retain a lawyer immediately. Personal bankruptcy is quite complex, and it is entirely possible that you will not be able to familiarize yourself with all the laws and processes. Personal bankruptcy attorneys can help make sure everything is done properly.
Stay abreast of new laws that may affect your bankruptcy if you decide to file. This area of law is in constant flux and it is imperative that you know where the law stands at the time you file for your bankruptcy. Keep up with your current state’s laws and regulations to figure out what steps you should take.
Before filing a bankruptcy claim, make sure that your home is well protected. It isn’t inevitable that you will lose your house when you file for bankruptcy. It depends what your home value is and if there is a second mortgage, as all this stuff comes into play when determining if you can keep the home. You could also check out the homestead exemption. This lets you continue living in your house, depending on whether you meet certain financial requirements.
Chapter 13 Bankruptcy
Consider if Chapter 13 bankruptcy is an option. If you are receiving money on a regular basis and your unsecured debt is under $250,000, you may be able to file Chapter 13 bankruptcy. The benefit of this plan is that you retain personal belongings and private real estate and your debts are repaid by an organized payment plan. This lasts for three to five years and after this, your unsecured debt will be discharged. Keep in mind that even missing one payment can be enough for your whole case to get dismissed.
If concerned about keeping possessions like a car, find out if your attorney can reduce the payment. In many cases, you can reduce your payment by filing a Chapter 7 petition. There are a few requirements that you have to meet to be eligible, though. You have to have bought the car more than 2.5 years ago, your loan’s interest rate needs to be over a certain amount, and your employment history has to be good.
There is a great amount of emotional and mental stress associated with filing for bankruptcy. To have a reliable and trustworthy guide through the process, find a highly qualified attorney. Make your hiring decision based on several criteria, not just on price. It may be not be necessary to hire a costly attorney; just make sure he or she is qualified to handle your case. Get referrals from those who have used a bankruptcy lawyer, talk to the bureau for better business, and take advantage of free consultations offered by most lawyers. If you want to know more about a specific lawyer, attend a court proceeding and see how the attorney handles herself.
Don’t wait to file for bankruptcy. For some people, they tend to ignore their poor financial situation and just wishing it away, but that is only putting you in more danger. Debts can multiply very quickly, and can result in you losing money to wage garnishment, or even losing assets that are part of a secured loan. As soon as you find yourself experiencing financial problems, take action and discuss your options with a bankruptcy attorney.
Do not omit any information about your finances, assets or debts when filling out your bankruptcy paperwork. Neglecting to include the smallest of detail can lead to a petition being dismissed. Even small amounts of money contribute to your overall financial picture, so do not exclude them. This can include side jobs, any vehicles to be counted as assets, and any loans you may currently have.
Gain all the knowledge of personal bankruptcy that you can. Without knowing the exact rules, you could inadvertently run into serious issues that could ultimately lead to your bankruptcy failing. Small errors could even cause your case to be dismissed. This is exactly why it’s imperative that you take the time necessary in order to research what you can about bankruptcy. Doing this will make the process easier.
Although personal bankruptcy remains an option, look into other avenues before making the decision to pursue it. Keep in mind that services that promise debt consolidation are usually scams that make your financial problems worse. Remember to use the tips from this article, and make good financial choices to avoid future debt.
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