Personal bankruptcy may be the right option for folks who have had property seized by the IRS. Although bankruptcy tends to destroy a person’s credit, it’s occasionally the only available option. Continue reading this article to understand what you need to know about bankruptcy and the likely end result of going through one.
Have a good look around the Internet to see what information is relevant to you regarding bankruptcy. The United States Some valuable resources include the U.S. Dept of Justice and American Bankruptcy Institute. The more you know, you can be confident you are choosing the right thing and that you are taking the right road to make sure your bankruptcy proceeds as easily as possible.
Instead of getting your lawyer from the yellow pages or on the Internet, try your hardest to find one with a personal recommendation. Companies are constantly popping up, claiming to help, yet only seek to profit from your misery. In ensuring that your bankruptcy is as simple as possible, trusting your attorney makes a big difference.
Keep working to improve your situation. When you file for personal bankruptcy, you may even be able to retrieve personal property that has been repossessed. For example you may be able to get your car, electronics and even jewelry returned to you. If the items were repossessed less than three months prior to your filing date, you may be able to recover them. Interview and research attorneys before choosing one to help you with your bankruptcy.
Don’t pay for the consultation with a lawyer who practices bankruptcy law; ask a lot of questions. Most lawyers offer free consultations, so consult with a few before settling on one. Make a decision when all your concerns and questions have been addressed well by one lawyer in particular. You do not have to give them your decision right after the consultation. So, this gives you plenty of time to consult with several attorneys.
Before you decide to declare bankruptcy, make sure that a less-drastic solution isn’t more appropriate. If you owe small amounts of money, you can join a counseling program or straighten your finances out by yourself. It is also possible to do your own debt negotiations; however, be sure to get everything in writing.
Chapter 13
Be certain that you can differentiate between Chapter 7 and Chapter 13 bankruptcy. In Chapter 7 most of your outstanding accounts will essentially be erased. The ties with the creditor will be broken. If however you enter Chapter 13, you will go into a five year repayment program prior to your debts dissolving entirely. In order to choose the right bankruptcy option, you need to know the differences between these kinds of personal bankruptcy filings.
A lot of bankruptcy attorneys will let you have a consultation, so try several out. By law, paralegals and assistants can not give legal advice, so be sure that you are meeting with an actual attorney. Be sure to check out a number of lawyers so that you will find one who is just right for you.
Safeguard your most valuable asset–your home. You do not have to lose your home in the process of a bankruptcy. You could keep your home; it depends on your home’s value or if a second mortgage is on your home. Additionally, some states have homestead exemptions that might let you keep your home, provided you meet certain requirements.
Find out more about Chapter 13. If you currently have some income and don’t have more than $250k in debt, you can declare bankruptcy. Declaring bankruptcy can assist you in consolidating your debt so you can repay it more easily. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. Missing a payment under these plans can result in total dismissal by the courts.
Don’t file bankruptcy if you can afford to pay your debts. Bankruptcy might seem like a good way to get out of paying your bills, but it will devastate your credit for the next ten years.
As your read at the start of this article, there is always the option of personal bankruptcy. Just be sure that you do not use it as your first choice. Learning how to manage this situation can minimize your headaches and prevent repossession of valuable property.
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