Everyone is suffering from the bad economy. When there is a bad economy there are a lot of people losing their jobs and having problems with debt. Deep debts usually wind up in bankruptcy. This is not a pleasant situation. If you would like to know how to get yourself or your friend out of filing for bankruptcy, read on for some possible answers.
Bankruptcy Laws
Filing for bankruptcy is something many people are forced to do when there debts become too much of a burden, and they can no longer afford to pay them. If this sounds familiar, you should read up on the bankruptcy laws in your state. Every state is different when it comes to dealing with bankruptcy. For instance, some states protect you from losing your home in a bankruptcy, but others do not. Become acquainted with local bankruptcy laws before filing.
It’s important that you understand what bankruptcy is and how it will change your life before you attempt to file a claim. The United States Department of Justice and American Bankruptcy Institute are two such places to look. The more you know, the better prepared you will be to make the best decisions and ensure that your bankruptcy goes smoothly.
Don’t use a credit card to pay off your taxes before filing for bankruptcy. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. If the tax can be discharged, so can the debt. So, there’s no reason to make use of a credit cards if it will not be discharged in bankruptcy.
Make sure you keep reminding your attorney about any important details in your case. Don’t just assume they already know and that they have these important details committed to memory or written down. Do not hesitate to speak up; this is your hearing and your future is on the line.
Determine which assets won’t be seized before filing for bankruptcy. There are several assets which are exempt from bankruptcy; therefore, consult the Bankruptcy code. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. Without reading the list, you may be shocked at which possessions can be taken from you.
Don’t try to hide anything if you are filing for bankruptcy, as this will hurt you in the long run. Regardless of the agency you file with, ensure that you tell them all they should know about your current financial situation, regardless of how good or bad it is. Don’t hold anything back and formulate a smart strategy to deal with the reality you are facing.
There is hope! If you file for bankruptcy at the right time it could enable you to get your property back that you lost to repossession. If it has been 90 days or less between the repossession of your property and your filing, you might be able to get your property back. Consult with a lawyer that can walk you through the filing process.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Do some research about these options so you can choose the best one. Do not hesitate to have your lawyer explain any details that seem difficult to grasp. This will help ensure you make the right choice when filing.
Avoid filing for bankruptcy if you make more money than your monthly bills. Bankruptcy may appear like the easier way to avoid paying your old bills, but it is a huge mark on your credit score and remains there for up to 10 years.
Even though our economy is slowly improving, many people still do not have jobs or decent wages. If you are lacking a steady income, and are facing mounting bills, there are still steps you can take to help avoid bankruptcy. This article should have given you some solid advice for staying afloat in tough times. Hopefully, you have the best luck.
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