Although unhappy circumstances in your life might have led you to file for bankruptcy, your life post-bankruptcy can be much better. Maybe what you need is a fresh start. You can find this by filing a bankruptcy claim. By following the tips presented here, you can transform your life through personal bankruptcy.
Don’t use credit cards to pay your taxes if you’re going to file bankruptcy. Generally speaking, taxes are not a dischargeable debt. The delays caused by this sort of tactic could leave you owing the IRS a great deal in interest and penalties. If the tax can be discharged, so can the debt. This means using a credit card is not necessary, when it will just be discharged.
Make sure you’ve exhausted all other options prior to declaring bankruptcy. You can also avail yourself of other options, such as consumer credit counseling. Since your credit history will forever note the bankruptcy, you want to make sure that you have tried everything else before you take an action such as this, in order to minimize the effect it will have with regard to your credit history.
It is essential that you are honest and forthright in the documentation you provide for your bankruptcy filings. You might feel tempted to not declare certain assets in your bankruptcy in order to protect them from forfeiture, but if you’re found out, the process could take longer, or worse, you might be banned from filing for bankruptcy completely.
Do not abandon hope. Certain property cannot be repossessed while you are in the process of filing for bankruptcy so be sure to learn about the laws in your state. If the property you own has been repossessed under 90 days before the bankruptcy filing, you may still be able to get it back. A lawyer will be able to assist you with filing the paperwork to get the items back.
Any bankruptcy consultation should be free of charge. Most lawyers offer free consultations, so consult with a few before settling on one. Don’t choose a lawyer until your questions about bankruptcy are sufficiently answered. You can think about your decision before making a commitment. You can take your time and check out several attorneys before making your final selection.
State Legislature
Brush up on the latest bankruptcy regulations before you decide whether or not to file. The laws are constantly undergoing changes, so you must stay on top of them if you are going to file for personal bankruptcy correctly. Review the state legislature web site or contact the state legislature office to keep abreast of changes in the law.
Do some research to find out more about Chapter 13 and Chapter 7. If you file for Chapter 7 bankruptcy, all of your debts will be eliminated. With very few exceptions, the connections between you and your creditors will be severed. But, with Chapter 13, you will be in repayment plan for about 5 years prior to any debts you have being totally dissolved. To make the wisest choice, you will need to understand the consequences of each of these two options.
There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. Take time to research this online and see the pros and cons for filing each one. If you are confused by what you find, be sure to ask your attorney to explain anything that is unclear before you make your decision about filing.
Determine if bankruptcy is necessary. Consolidation could be the avenue you need to get your finances back in order. There is not easy process associated with personal bankruptcy. It will also make it tough for you to secure credit after your filing is complete. So, consider bankruptcy only as a last resort when you have no other choice.
Chapter 13
Consider Chapter 13 bankruptcy, if you chose to file. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. Expect to make payments for up to 5 years before your unsecured debts are discharged. Consider that if you even miss one payment, your case will not be considered by the court.
Speak with an attorney about any fears you have about losing your car. You may even be able to get your monthly payment reduced. You can often lower your payment using Chapter 7 bankruptcy. In order for this to be considered, your car loan must be one with high interest, you need a solid work history and the car should have been bought 910 days or more prior to you filing.
The road to personal bankruptcy is a sad and difficult one. Use what you have learned and take responsibility for your financial health – turn your life around. Bankruptcy is not the end. Follow the tips given here in order to make it a new beginning.
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