It is unfortunate that many people are currently facing bankruptcy. If you are considering bankruptcy, you are not alone. If you decide to file, it’s crucial that you are well educated on the subject of personal bankruptcy, so you are able to make proper choices. Read this article to learn more about bankruptcy.
Do not even think about paying your taxes with credit and petitioning for bankruptcy right after. 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. Transferring the debt to another medium (e.g. a credit card) won’t magically make a tax debt discharagable, either. So, there is no reason to use your credit card if it will be discharged in the bankruptcy.
Don’t be afraid to remind your attorney of certain details in your case. Don’t assume that they’ll remember something important later without having a reminder. Ultimately, this is your bankruptcy and your financial future, so never hesitate to advocate on your behalf.
Instead of relying on random selections from the phone book or Internet, ask around and get personal recommendations. There are so many dime-a-dozen companies out there who make it a practice of preying on financial desperation. You need to make sure your bankruptcy goes smoothly, so find someone you know you can trust.
Before filling for bankruptcy, determine which assets will be exempted from seizure. Certain assets, as listed in the local bankruptcy regulations, are immune from seizure during bankruptcy. It’s crucial to read that list before filing to see which of your prized possessions can be seized. This will ensure that you do not have any surprises once you have filed bankruptcy.
Chapter 13
The two main kinds of bankruptcy are Chapter 7 and Chapter 13. Make sure you understand them so you know what is best for you. If you file for Chapter 7 bankruptcy, all of your debts will be eliminated. Your responsibilities to your creditors will be satisfied. In a Chapter 13, though, you’ll be put on a payment plan for up to 60 months before being free of your debts. It’s important to know what differences come with every type of bankruptcy. This will let you find out what’s best for you.
Become knowledgeable in regards to details about chapter seven bankruptcy vs. chapter 13 bankruptcy. Research both types of bankruptcy online, and weigh the positives and negatives each would offer you. Go to a specialized lawyer to ask your questions and get some useful advice on what to do.
If you are going to be filing for bankruptcy, think about filing Chapter 13. With a regular income and unsecured debt below $250,000, Chapter 13 is probably best for you. Filing for this type of debt will ensure that you can hold onto your real estate and personal property, and will let you develop a consolidation plan to pay off your debts. These kinds of plans usually range across 3, 4 and 5 years. Once this is done, all your unsecured debt will get discharged. Remember, though, that if you fail to make even one payment, the case will be thrown out and you’ll be right back where you started.
There are many ways to resolve financial difficulties other than bankruptcy, and you should investigate all of them first. For example, you can always talk with a lawyer to see about different options through creditors or other means that will not require wiping the entire slate clean. If a foreclosure is your reason for filing look into your options with your bank first, such as a loan modification. Your lender can help you get current on your loan by offering you one of a number of modifications, such as getting rid of late charges, lowering interest rates, or extending the length of the loan. Remember that creditors desire to get paid and usually debt repayments are often preferable when dealing with bankrupt debtors.
Make sure that you act at the appropriate time. Proper timing is important, especially when it comes to personal bankruptcy. Sometimes, you may need to file quickly; however, at other times, you should wait until the worst is over. Discuss the strategic timing of your bankruptcy with your attorney.
Create a list of all of your finances before filing for bankruptcy. Forgetting to add these may cause your petition to be delayed, or even dismissed. No matter how insignificant a sum seems, include it in the documentation. This includes income from second or part time jobs, vehicles and loans.
Personal Bankruptcy
Know the laws and guidelines about bankruptcy before you formally file. There are many issues with personal bankruptcy code, and these pitfalls can cause problems with your case. Mistakes can also have your case dismissed. Prior to filing any papers, learn about your rights and responsibilities when filing for personal bankruptcy. If you take care of this now, you can avoid problems going forward.
Never take huge cash advances directly from your credit cards before you file for bankruptcy, since you know that all debts will be erased from these cards. This is fraud, and even if your other debts are discharged, you will have to pay the money back.
As you can see, bankruptcy is quickly becoming more popular due to the poor state of our economy. Apply the tips from this article to make the best bankruptcy choices.
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