A lot of folks in modern times are deep in debt. They have lots of collection agencies looking for them and they have trouble paying their bills. If you are in that situation, it may be time to consider personal bankruptcy. The information in this article will help you to decide if this is an option for you.
Do not try to get clever by paying your taxes via credit card before you declare bankruptcy in an effort to dodge your tax burden. 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. Keep in mind that if the tax debt is eligible to be discharged, then the credit card debt is also dischargeable. It is pointless to use credit cards if they can be discharged.
Honesty is of utmost importance during your filing, even though it may be tempting to “pad” your answers a little. You may be tempted to try to hide income and personal assets from discovery, but doing so often leads to major complications, monetary penalties and the possibility that your case will be thrown out of court.
Do not give up hope. Filing for bankruptcy may allow you to get back property, such as an auto, jewelry, or electronics, that you may have had repossessed. If your personal property was repossessed within 90 days before your bankruptcy filing, you may have a chance of getting it back. Talk to a lawyer for help with the petition filing process.
Any bankruptcy consultation should be free of charge. Most lawyers offer free consultations, so talk to a few before making your decision. Don’t choose a lawyer until your questions about bankruptcy are sufficiently answered. Take your time before you decide to file after you meet with your lawyer. This will give you extra time to interview several attorneys.
If you are about to file for bankruptcy, then make sure you hire a lawyer. There are many different aspects to filing bankruptcy, and you may not understand everything there is to know. Your lawyer will make sure that the filings are correct and help you navigate the complex process of filing for bankruptcy.
Speak to a bankruptcy attorney about what new laws may be going into effect before your bankruptcy filing. The laws are constantly undergoing changes, so you must stay on top of them if you are going to file for personal bankruptcy correctly. To stay up-to-date on these laws, check out your state’s government website.
Chapter 7
Be sure you know how Chapter 7 and Chapter 13 differ. If Chapter 7 is what you file, your debts will get eliminated entirely. With very few exceptions, the connections between you and your creditors will be severed. If you file using chapter 13 bankruptcy, you will go through a sixty month repayment plan prior to all your debts being completely dissolved. It is important that you understand the differences between the different types of bankruptcy, so that you can decide which option is best for you.
Before filing a bankruptcy claim, make sure that your home is well protected. Losing your home is thought of as common in bankruptcy cases, but it is by no means inevitable. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. Additionally, some states have homestead exemptions that might let you keep your home, provided you meet certain requirements.
Make sure you know how to differentiate between Chapter 13 and Chapter 7. Get a good grasp of the pluses and minuses each type of filing involves by researching both of them extensively. If the information you read is unclear to you, take the time to go over the specifics with your lawyer before making a decision on which type you will want to file.
Look into filing Chapter 13 bankruptcy. If you are receiving money on a regular basis and your unsecured debt is under $250,000, you may be able to file Chapter 13 bankruptcy. This will allow you to keep your personal property and real estate and repay your debts via a debt consolidation plan. It usually takes three to five years to fulfill this plan. When the time is up, you’re unsecured debts will be discharged. Missing a payment under these plans can result in total dismissal by the courts.
Don’t forget to enjoy yourself during your bankruptcy. A lot of debtors usually get stressed when they file. Depression can ensue from the stress if action isn’t taken. Once the process if over, your life will improve.
Now you should be aware that there is plenty of available help when thinking about filing for bankruptcy. If you deal with your stress in a positive way and make level-headed decisions, your bankruptcy filing will be a step in the right direction for a renewed financial future.
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