Even people who have had assets, such as a car, seized for back tax debt can file for bankruptcy. Filing for personal bankruptcy may be the only option available to you; even though, it can be very hard on your credit rating. To find out more about bankruptcy and what it entails, view the following article.
You should avoid paying your taxes with credit cards and then immediately file for bankruptcy. In many parts of the country, you cannot get this debt discharged, and in the end you will be left owing the IRS a big sum of money. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. Just because your credit card could be discharged in bankruptcy does not mean you should use it.
Instead of jumping into a bankruptcy filing, be sure your situation requires it. Alternatives do exist, including consumer credit counseling. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
Unsecured Credit
You might find it difficult to obtain an unsecured credit card or line after emerging from bankruptcy. This being the case, look at secured card options. When you do this, it shows your determination to fix your credit history. When you have done well with secured cards for a while, you should be able to obtain an unsecured credit card.
If you can, get a word-of-mouth referral for a lawyer. There are various companies that prey on the financially desperate, so you need to find someone you can trust to ensure the process goes smoothly,
You may end up losing more than you bargained for when you file a bankruptcy claim, so be sure that you know just which assets may be taken before filing. The Bankruptcy Code provides a list of all the different kinds of assets that you can exclude. Make sure that you carefully look over this list prior to filing to discover if your valuable assets will be seized. If you aren’t aware of this, you could lose some assets that you value.
Chapter 13 Bankruptcy
Know the differences between Chapter 7 and Chapter 13 bankruptcy. Should you choose Chapter 7, your total debt load will be erased. All happenings with creditors will disappear. If you file for Chapter 13 bankruptcy, however, you will enter into a 60 month repayment plan before your debts are completely dissolved. It’s crucial that you know the differences between all of the various kinds of bankruptcies so that you may choose the best option for your situation.
Spending time with the people you love is something you should do now. Filing for bankruptcy, and all that comes with it, can be hard to handle at times. It is extremely stressful and long, and it can leave you feeling ashamed of yourself. Lots of people decide they should hide from everyone else until it is all over. Isolating yourself from your loved ones can lead to feelings of depression. It’s crucial to spend time with loved ones despite your present financial situation.
If your paycheck is larger than your debts, avoid filing for bankruptcy. While bankruptcy may seem like an easy way out of having to pay back all of the debt that you owe, it is a stain that will remain on your credit report for seven to ten years.
If you meet certain requirements, you may be able to get a lower monthly payment on your financed vehicle. In many cases, Chapter 7 bankruptcy can lower your payments. You must have bought the car 910 or more days before you filed, the loan must have a high interest rate, and you have to have a secure and steady working history in order for that to work.
Chapter 7 Bankruptcy
Before you choose Chapter 7 bankruptcy, think about what effect that is going to have on any co-signers you have, which are usually close relatives and friends. Once you file for Chapter 7 bankruptcy protection, you no longer have legal responsibility for debts that you and any co-signers originally agreed to. However, your creditors will be able demand that your co-debtor pays the debt off in full.
Every single piece of financial information you have needs to be studied and properly listed when filing a bankruptcy claim. If you don’t do this, your file could be delayed or dismissed. No sum is too small to be included; err on the side of caution and include everything. Financial information should include all income, assets and loans.
In conclusion, the option of bankruptcy is always there. However, you may wish to avoid it because of what it can do to your credit. Learn all that you can about bankruptcy before you file. That way, you will be prepared to make the best decision for a happy financial future.
This is a limited-time offer. We are not able to guarantee availability if you wait!
