If your car or other valuable items are about to be repossessed due to back taxes, you are probably quite afraid of what will happen. If you want to put an end to the annoying calls, the threatening letters, and other intimidation tactics, filing bankruptcy may be your only out. Keep reading for useful tips to help you through the process.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. The fact is that the credit card debt will be ineligible for discharge, and your tax debt may increase. In most cases, you can use the adage that “a dischargeable tax is a dischargeable debt.” Because of this, transferring the debt to your credit card is pointless.
It is important to remind your lawyer of any details that may be important to your case. Don’t assume that he’ll remember something from a month ago; tell him again. Ultimately, this is your bankruptcy and your financial future, so never hesitate to advocate on your behalf.
Prior to filing for bankruptcy, research which assets will remain exempt from creditors. 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. If you fail to go over this list, you may be unpleasantly surprised sometime down the road if any of your most valued items are seized.
Be persistent in researching information about filing for bankruptcy and consult a qualified personal bankruptcy attorney. There may still be way to get repossessed items back after you file for bankruptcy. If your personal property was repossessed within 90 days before your bankruptcy filing, you may have a chance of getting it back. Interview and research attorneys before choosing one to help you with your bankruptcy.
Don’t pay for an attorney consultation and ask him or her anything you want to know. When you arrive at a consultation ask plenty of questions. You should also seek free consultations from several attorneys prior to choosing one. Therefore consult with different lawyers and get a feel for them, then decide which one suits your needs You don’t need to decide what to do right away. That gives you the chance to speak to a number of lawyers.
Chapter 13 Bankruptcy
Be certain to grasp the distinction between Chapter 7 and Chapter 13 bankruptcy cases. If you file for Chapter 7 bankruptcy, all of your debts will be eliminated. Any debts that you owe to creditors will be wiped clean. Chapter 13 bankruptcy allows for a five year repayment plan to eliminate all your debts. It is important that you understand the differences between the different types of bankruptcy, so that you can decide which option is best for you.
It is wise to meet with several lawyers before making a final decision, take advantage of the free consultations to find one that is a good fit for you. 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. Take some time to talk to different lawyers to find one that fits your needs, and meshes well with you.
Never forget that you still deserve to enjoy life while you go through the bankruptcy process. Many debtors stress-out during the time of filing. If you let the stress get to you you may get depressed if you’re not doing the proper things to fight it. Life will surely get better after you finish this process.
Find out about lowering the cost of the payment you pay monthly on your car, if you are afraid of losing it. Filing for Chapter 7 can help to lower your monthly payments on possessions such as your vehicle, helping to ease your financial load. The requirements are that your car purchase has to be greater than 910 days before filing, must have a loan that is high in interest, and must have a solid work history.
If you are filing for bankruptcy, it is imperative that you have a good understanding of your rights. Bill collectors will lie to you and say you can’t have their bill discharged. Few debts exist that are not covered by bankruptcy, such as student loans or child support. If you are told by a debt collector that your debts are not dischargeable, make a record of your conversation and report the individual to the proper state authorities.
Decide right up front that you are not going to feel embarrassed or ashamed about needing to file bankruptcy. Bankruptcy can sometimes leave people feeling guilty, ashamed and alone. Try not to give in to these feelings, as they are of no help to you and they can affect your emotional health. To best deal with filing for bankruptcy, look for the positives in the situation.
Credit Counseling
Don’t file for personal bankruptcy until you’ve looked into your other options. You should consider credit counseling. You can get the help you need from a variety of non-profit credit counseling companies. They will make arrangements with your creditors so you will have lower payments as well as lower interest rates. They collect payments from your and then pay the creditors.
If you are planning to file for bankruptcy in the immediate future, you should refrain from taking out cash advances via your credit cards. This is against the law and it is fraud. After the bankruptcy process you can be made to pay it all back to the creditor.
Bankruptcy should be your last resort. Also remember that many debt consolidation services are a scam that will get you even deeper into debt. Avoid debt in the future and make good financial choices by committing the tips presented here to memory.
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