Bankruptcy is something no one wants to experience. However, some situations in life are simply beyond our control. Once debt reaches a certain level, bankruptcy may be the only option. When debt becomes too much for and you’re left looking bankruptcy in the face, don’t leave yourself unprotected. Use the tips in this article to assist you.
Do not pay your taxes with credit cards that will be canceled when you file for bankruptcy. In some places the debt can not be discharged, and you may still need to pay the IRS afterward. If the tax can be discharged, so can the debt. Just because your credit card could be discharged in bankruptcy does not mean you should use it.
Always be honest with the information you give about your finances. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
Credit Cards
You might find it difficult to obtain an unsecured credit card or line after emerging from bankruptcy. If this happens, instead you should turn your attention to secured credit cards. This at least shows you are making an honest attempt at reestablishing your credit worthiness. After a time, you are going to be able to have unsecured credit cards too.
Look for a bankruptcy lawyer that comes from a personal recommendation instead of someone random on the Internet or in the yellow pages. There are plenty of companies who know how to take advantage of people who seem desperate, and it’s important to be sure your bankruptcy can go smoothly; take your time and choose someone you can trust.
Don’t file for bankruptcy until you know what assets of yours can and can’t be seized. The Bankruptcy Code lists the kinds of assets which are exempted when it comes to the bankruptcy process. It is vital that you know the things on this list prior to filing for bankruptcy, in order to determine which of your possessions will be taken away. You may find yourself unpleasantly surprised when the things you value the most are taken from you without warning. This is why it is very important the familiarize yourself with this list.
Familiarize yourself with the bankruptcy code before you file. It can be tough to keep up with them on your own, and because they change often, a bankruptcy attorney can help you keep track for the sake of your filing process. To know what these changes are, go to your state’s website or contact the legislative offices.
Many bankruptcy lawyers offer free consultations, so go to several before choosing one. By law, paralegals and assistants can not give legal advice, so be sure that you are meeting with an actual attorney. Seeking out different attorneys is all part of the process until you find someone that you can trust.
Your most important concern is to protect your home. It isn’t inevitable that you will lose your house when you file for bankruptcy. There are mitigating factors, such as lose of value, or multiple mortgages. 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.
Chapter 13 Bankruptcy
Find out more about Chapter 13. If your source of income is regular and your unsecured debt is less than a quarter million, Chapter 13 bankruptcy is something you are able to file for. Chapter 13 bankruptcy permits you to remain the owner of your properties, while allowing you to repay your debt using a debt consolidation loan. Generally, this stays in effect for up to 5 years. Afterwards, your unsecured debts clear from your accounts. However, if you were to miss a payment, the court would dismiss your case right away.
If you have found yourself facing bankruptcy, it is crucial that you get good advice on what to do next. The process is anything but simple, and information will become your best friend during this difficult time. The article that you just read offered valuable information which you can use to help alleviate some of the stress when dealing with your financial situation.
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