Personal bankruptcy can be overwhelming during the process, but a load off your shoulders once you get through it. There is the need for all your finances to be exposed, and multiple people scouring your financial information. However, when your bankruptcy is over, you can re-establish your finances and no longer need to tolerate bill collectors. The following article will give you advice to make filing for bankruptcy simpler.
Learn as much as you can about bankruptcy by going to informational websites. The United States Department of Justice and American Bankruptcy Institute are both sites that provide free advice. The greater your body of knowledge, the better prepared you will be to make the decision of whether or not to file and to make certain that if you do file, the process is a smooth one.
Do not use a credit card to pay income taxes and then file for bankruptcy. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS. Generally speaking if you can discharge the tax, you can discharge the debt. So, in short, do not use your credit cards to pay off debts right before you file for bankruptcy.
It is essential when going through bankruptcy that all of your income and assets are reported openly and honestly. You must avoid the temptation to conceal any valuables, money or other assets from the courts. If they find that you have lied, you may be faced with fines, penalties or the inability to file in the future.
Familiarize yourself with any new law before you make the final step to filing for bankruptcy. Bankruptcy laws change a lot and before making the decision to file, you need to know what you are getting yourself into. A qualified bankruptcy attorney is the best source for the latest information regarding the laws in your state.
Chapter 13
Chapter 13 bankruptcy might be a good option, so don’t overlook it. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. The benefit of this plan is that you retain personal belongings and private real estate and your debts are repaid by an organized payment plan. This plan normally lasts from three to five years, in which you’ll be discharged from unsecured debt. Stay mindful that should you for any reason miss even one plan payment, your whole case is going to get thrown out by the court system.
Do not forget to make quality time for friends and family members. Bankruptcy can take a toll on you. It is extremely stressful and long, and it can leave you feeling ashamed of yourself. A lot of folks decide to hide themselves from the world around them until the end of the process. On the other hand, isolation of a self-imposed nature can only worsen your feelings, opening the door to mental depression to join your financial depression. So, even though you may be ashamed of the situation you are in, you should still be around those you love.
Before you decide to file for Chapter 7 bankruptcy, consider how it could affect other people on your credit accounts, such as family members or business partners. When filing for Chapter 7, you won’t be responsible legally for debt signed by co-debtors and yourself. Your creditors can then come after your co-debtor for full repayment of the debt.
Filing bankruptcy under Chapter 13 means you can still get a loan for a car or a mortgage. Of course, it’s difficult. You need to contact your trustee so you can get approved for a new loan. Create a budget and prove that you will be able to afford it. Also, be sure you can provide an explanation as to why this purchase is necessary.
Before filing for bankruptcy, learn your rights. There are bill collectors who will claim that you cannot add your debts to your bankruptcy case. There are, indeed, some debts that cannot be bankrupted. Among them are student loans, child support and alimony payments. If you are unsure about specific types of debt, check the bankruptcy laws in your state or consult an attorney.
Make sure that you disclose every bit of financial information on your bankruptcy petition. If you forget to add these, your petition could be delayed or dismissed. It is better to have something on there that you are unsure about, rather than not include it at all and risk a dismissal. This may include secondary employments, vehicles you own and loans you still owe money on.
Don’t put off handling the research or procedures for the bankruptcy process if that is the route you’re taking. Filing for bankruptcy is a hard decision to make but if you wait too long, your situation will get worse. If you are not sure, gather all of your information and spend a little time speaking with a bankruptcy attorney; their experience can help you make the right decision.
When it comes to filing for personal bankruptcy, there are good things and bad things. No matter why you are filing, good information is needed. The information you just read will greatly simplify the bankruptcy filing process. Use these tips smartly to make the best decision possible.
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