Most people never expect to be in the position of facing bankruptcy. People who declare bankruptcy usually have no other options left available. If you discover that you are faced with bankruptcy, you can help yourself with the knowledge provided below.
If you are in a position where you are unable to pay your debts, bankruptcy may be the only option for you. Study the laws in you state to learn what you need to do and what your options are. Every state is different when it comes to dealing with bankruptcy. In a few states, they see to it that your house is protected. This is not the case when it comes to other states. It is best to become familiar with your state’s laws regarding bankruptcy before you take the steps to file.
Generally Speaking
Do not attempt to pay your taxes with your credit cards and subsequently file for bankruptcy. 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. Generally speaking, debt incurred to pay taxes and the tax bills themselves are treated the same in a bankruptcy. This means using a credit card is not necessary, when it will just be discharged.
Don’t hide assets or liabilities when filing for bankruptcy. The person you choose to file with needs to know both the good and bad aspects of your finances. Lay everything out on the table so that you and your lawyer can devise a plan to get you out of this mess.
Stay positive. Many times you can get repossess property back once bankruptcy has been filed. There is a chance that you can get back your property if it has been less than ninety days since repossession. Talk to your lawyer to find out how to go about properly filing a petition.
When a bankruptcy is imminent, retain a lawyer immediately. You may not know everything you need to know in order to have a successful outcome of your case. Personal bankruptcy attorneys can help make sure everything is done properly.
Prior to choosing a bankruptcy attorney, seek a free consultation with at least three attorneys. It is important to meet with the actual lawyer, because paralegals or assistants cannot give you legal advice. By shopping lawyers, you will be more likely to find one that makes you comfortable about the process.
It is possible to keep your home. Filing for bankruptcy does not mean you have to lose your home. Check your home’s current value to see if it has gained equity and get your first and second mortgage papers together. You are still going to want to check into homestead exemption either way just in case.
Make sure you know how to differentiate between Chapter 13 and Chapter 7. Spend time researching the advantages and disadvantages of filing for each one of these. Engage your attorney in a conversation about each type, and ask him to answer any questions you may have before deciding which kind is right for you.
Chapter 13
Research Chapter 13 bankruptcy, and see if it might be right for you. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. 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. Such plans generally take between 3 and 5 years to complete, at which point. a discharge will be granted. Missing a payment under these plans can result in total dismissal by the courts.
It’s not going to be fun and it’s not going to be easy, but you can simply the process if you’re reading the right information. This is much easier if you know more about the basics of bankruptcy. With the tips from this article, you should be well-prepared to handle anything bankruptcy related.
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