Filing for bankruptcy is not a simple process. Several different types or “Chapters” of bankruptcy are available to you. Depending on the state of your finances and the type of debt that you have accrued, you may qualify for one type of bankruptcy, but not another. You should learn as much as possible about personal bankruptcy if you are trying to make a decision to file or not. The following tips will help you understand bankruptcy.
Do some research online about personal bankruptcy to get a better idea of what this procedure implies. The United States Check out the Bankruptcy Institute site and do some research about consumer’s rights. You need to spend some time gathering valuable information so you can file your bankruptcy with confidence.
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. In most states, this debt won’t be discharged, and you could end up owing the IRS a whole lot more. If the tax can be discharged, so can the debt. Because of this, transferring the debt to your credit card is pointless.
It is essential that you are honest and forthright in the documentation you provide for your bankruptcy filings. Don’t hide income or assets from your lawyer or the bankruptcy trustee or you may find yourself in legal trouble.
Credit Cards
After filing for bankruptcy, you could have trouble acquiring unsecured credit. If this happens to you, think about applying for a couple of secured credit cards. This demonstrates to creditors that you are making a good faith effort to repair your credit. After a certain time, you will then be able to acquire credit cards that are unsecured.
Rather than checking online, try to get recommendations from friends or family about a suitable bankruptcy attorney. There are way too many people ready to take advantage of financially-strapped individuals, so you must ascertain that your attorney can be trusted.
Don’t file for bankruptcy until you know what assets of yours can and can’t be seized. The Bankruptcy Code lists assets considered exempt from being affected by bankruptcy. It is crucial to read the list before you file for bankruptcy so you know whether your favorite items will be taken. If you do not read this list, you could be in for some nasty surprises in the future, if some of your most prized possessions are seized.
Do not give up. Filing for personal bankruptcy may possibly enable you to reclaim your personal property that have been repossessed, like your car, electronics and jewelry items. Filing for bankruptcy may allow you to regain ownership of recently repossessed property. Get the advice of a qualified attorney who can advise you about ways to accomplish this.
Protect your house. Filing for bankruptcy does not guarantee that you will lose your house. You might be able to keep your home, for instance, if you have two mortgages or if your home has lost its value. You should also examine the possibility of taking a homestead exemption. This could apply if your income falls below the financial threshold.
Understand the differences between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy. Take the time to find out about each one online, and look at the advantages and disadvantages of each. Once you have done your own research, be sure to review your findings with your lawyer, who is the expert. This way, you can be sure of making a well informed choice.
Chapter 7
Before you make the decision to file Chapter 7 personal bankruptcy, take time to think about anyone it could affect. Debts that involved a co-signer can be discharged in Chapter 7 bankruptcy. Sadly, this will not be the case for your co debtor. Your creditors may simply turn their attention to your hapless acquaintance.
Find the right time to take action. When it comes to filing for personal bankruptcy, timing is vital. While there are times that it is ideal to file soon, there are other times in which you should wait. A lawyer is in the best position to evaluate your case and figure out when you should file for bankruptcy.
Include your entire financial information when you file for bankruptcy. If the court thinks you are attempting to conceal information, your petition could be denied. You might think some asset or debt isn’t worth bothering with, but you should disclose it just to be on the safe side. That may include secondary jobs, any cars or trucks you want to be considered assets and any current loans.
As you now know, bankruptcy is not a decision that should be made lightly. If it seems to make sense in light of your financial problems, you should seek an experienced bankruptcy attorney who can guide you toward a fresh, clean start!
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