There are few financial decisions more momentous than determining whether or not it is time for a bankruptcy filing. Make sure that you know what you are doing every step of the way. Read the tips listed here for guidance. Making the decision to file for bankruptcy isn’t a light one. Use the information provided below to take the correct steps.
You can find a wealth of information concerning personal bankruptcy by searching for websites which offer information about it. Many sites, including the U.S. Department of Justice, the American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys, all provide valuable information. As with everything in life, the more you know about filing a claim, the better off you’ll be. You can properly prepare when you know what you’re preparing for.
Credit Card
Do not try to get clever by paying your taxes via credit card before you declare bankruptcy in an effort to dodge your tax burden. In most states, you will still owe money to the IRS and have to take care of the interest of your credit cards. Keep in mind that if the tax debt is eligible to be discharged, then the credit card debt is also dischargeable. So it does not help you to put the tax bill on your charge card if you know the debt will be discharged anyway.
You may still have trouble receiving any unsecured credit after a bankruptcy. If that is the case, you should try applying for one, or two secured cards. This will show people that you are serious about getting your credit record back in order. Eventually, you could be able to obtain unsecured credit.
Be honest when filing for bankruptcy, because hiding liabilities or assets can only cause trouble to you. Your bankruptcy lawyer has to know every detail of your finances, whether bad or good. You are in this situation, now help them to give you the best assistance possible to deal with it. You do that by giving full disclosure and holding nothing back.
Speak to a bankruptcy attorney about what new laws may be going into effect before your bankruptcy filing. If you want to file for bankruptcy successfully, it’s important to review the latest applicable laws. They tend to change frequently. Your state will have a website to check, or a number you can call, to learn the latest changes in the bankruptcy laws.
Before making your decision to file for bankruptcy, double-check to see if other, less drastic options could make sense. There are numerous programs out there that may assist you with your debt, like a credit counseling program, a nonprofit group, government assistance, etc. Sometimes you can negotiate a reduced payment, though you must strive to get it all in writing.
Chapter 13 Bankruptcy
Find out more about Chapter 13. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. Chapter 13 bankruptcy permits you to remain the owner of your properties, while allowing you to repay your debt using a debt consolidation loan. Such plans generally take between 3 and 5 years to complete, at which point. a discharge will be granted. Remember that you must make every payment. Missing even one could cause the court to dismiss your case.
Do not forget to be around those you love. Undergoing bankruptcy can be a difficult experience. Not only is the process long, but it can be stressful, and many people feel ashamed when they do it. A lot of people hide away until the entire proceedings have been played out. Washing yourself in self-pity will only make the situation worse and can leave you feeling very depressed. Spend time with your family, talk about your problems and find things that relax you.
As you can see by now, there are different ways of filing for personal bankruptcy. Do not be overwhelmed by all the information. Take some deep breaths, and think about what you’ve just learned. This makes it more likely that you will make rational decisions that will have long-term financial benefit.
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