The decision to file for personal bankruptcy must not be taken for granted. Do not file unless you fully understand the consequences and implications. The information below can guide you. No matter what obstacles fall in your path, you can overcome them with good research.
Bankruptcy Laws
Generally bankruptcy is filed when a person is facing insurmountable debt. If you find yourself going through this, you should know all about the laws that are in your state. Each state has their own bankruptcy laws. In certain states if you file for bankruptcy your home remains protected, but the laws vary depending on where you reside. Become acquainted with local bankruptcy laws before filing.
You can find a wealth of information concerning personal bankruptcy by searching for websites which offer information about it. The US DOJ, the NACBA, and the ABI all have useful information. The more you know, the better equipped you’ll be to make the wise decisions needed for a successful bankruptcy.
Do not use a credit card to manage your tax issues and then try to file bankruptcy. In most states, this is not dischargeable debt. Therefore, you will end up owing the IRS a lot of money. Bear this in mind; if the tax can be discharged, then the debt can be as well. 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 must be absolutely honest when filing for personal bankruptcy. If you try to hide any of your information, it will eventually surface and cause you problems. The person you choose to file with needs to know both the good and bad aspects of your finances. Never hide anything, and make sure you come up with a well devised plan for dealing with bankruptcy.
You should never give up. You might even be able to get back secured property that has been repossessed in the 90 days before filing. Filing for bankruptcy may allow you to regain ownership of recently repossessed property. Consult with a lawyer who can advise you on what you need to do to file a petition.
Find a specialized lawyer if you are thinking about filing for bankruptcy. Bankruptcy is a complex process, and you probably don’t know all the information that is required to navigate it. A qualified bankruptcy attorney can guide you through the filing process.
A lot of bankruptcy attorneys will let you have a consultation, so try several out. Ensure that your meeting is actually with the attorney, not with a paralegal or an assistant. People in these positions are unable to offer legal advice. It will be important to work with a bankruptcy lawyer that you feel comfortable with; a little comparison shopping will help you find the right one.
Safeguard your most valuable asset–your home. Bankruptcy doesn’t always mean you’ll lose your home. You can still keep your home, it just depends on your specific situation and the value of your home. It can be worthwhile to understand the homestead exemption law to see if you qualify to keep living in your home under the financial threshold requirements.
Investigate your other alternatives before you decide you have to go with bankruptcy. Consolidation could be the avenue you need to get your finances back in order. It is not a quick and easy process to file for bankruptcy. It will affect your access to credit in the future. Therefore, you must make sure that there is no other option that you could take before you file for bankruptcy.
If concerned about keeping possessions like a car, find out if your attorney can reduce the payment. Often, you can negotiate a lower payment through bankruptcy. You must have bought the car 910 or more days before you filed, the loan must have a high interest rate, and you have to have a secure and steady working history in order for that to work.
Chapter 7 Bankruptcy
Before you decide to file for Chapter 7 bankruptcy, you should consider what your bankruptcy might have on others, as your family and friends may be affected. A Chapter 7 bankruptcy will relieve you of your legal responsibility to pay any joint debts. However, anyone sharing the loan with you may be forced to pay back the entire amount for the amount in full, which spell financial disaster for them.
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. Debt can snowball very fast, and by ignoring it, you increase the chances of worse problems, such as foreclosure and wage garnishments. Speak with a bankruptcy lawyer as soon as you become aware that you cannot handle your debts.
After reading this article, you will know how to file a claim bankruptcy. Don’t stress about the amount of information before you. Take some time to figure things out. You’ll be able to make more considered decisions this way.
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