Are you having financial problems and think bankruptcy is the lone choice you have? You’re not alone, so don’t fret. A lot of people have thought of bankruptcy as the only choice they had to get rid of their financial troubles. The following article will provide you with tips and advice for navigating bankruptcy.
Think twice if you have struck upon the idea of paying off your taxes by credit card and subsequently filing for personal bankruptcy. You will find few states that discharge this kind of debt. You may also wind up owing a lot of money to the IRS. Bear this in mind; if the tax can be discharged, then the debt can be as well. So, in short, do not use your credit cards to pay off debts right before you file for bankruptcy.
Never shirk on the truth in your petition for bankruptcy. Resisting the temptation to hide income or valuable assets from the bankruptcy trustee is a smart way to avoid potential complications, penalties, and the possibility of being barred from re-filing in the future.
You must be absolutely honest when filing for personal bankruptcy. If you try to hide any of your information, it will eventually surface and cause you problems. It is necessary to be open regarding both the positive and negative aspects of your financial life. Don’t hold back information and create a strategy so you can deal with what’s really happening.
Chapter 13
There are two types of personal bankruptcy: Chapter 7 and Chapter 13. Make sure you know what each entails so you can make the right choice. All debt will be eliminated with Chapter 7. Any debts that you owe to creditors will be wiped clean. Filing Chapter 13 differs by requiring you to agree to a 60 month plan to repay your debts before they are totally eliminated. 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.
Since it is possible to obtain a free consultation from the majority of bankruptcy lawyers, meet with a few of them prior to choosing one. Always ensure that the person you meet with is a real lawyer, not a legal assistant or paralegal. These people can’t give legal advice. Taking the time to compare lawyers will ensure that you get a person that you can be yourself around.
Safeguard your home. Bankruptcy filings do not necessarily mean that you have to lose your house. You might be able to keep your home, for instance, if you have two mortgages or if your home has lost its value. It can be worthwhile to understand the homestead exemption law to see if you qualify to keep living in your home under the financial threshold requirements.
Understand the differences between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy. Take time to research this online and see the pros and cons for filing each one. If something doesn’t make sense to you, go over it with your lawyer prior to choosing which one to file.
If you are making more money than you owe, bankruptcy should not even be an option. Bankruptcy may appear like the easier way to avoid paying your old bills, but it is a huge mark on your credit score and remains there for up to 10 years.
After you have finished with the initial process of filing, you can relax and take a breather. Lots of debtors are stressed out when they’ve come to filing time. This kind of stress can take a heavy toll on your personal life, especially if you are not making any efforts to adopt a positive attitude. Your life will most likely improve once you’re over this hump, so relax.
Filing for Chapter 13 bankruptcy will not prevent auto loans or mortgages from being obtained. There are extra hoops to jump through. Your trustee can help you acquire a new loan. Draw a budget up and show how you can pay the newer loan payment. They may also want to know why you believe you need the loan.
The introduction to this article emphasized that many, many people have filed for bankruptcy in the past and many will in the future. The difference is, you are arming yourself with good knowledge with articles like this. Apply the preceding advice in order to facilitate a seamless bankruptcy case.
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