Many people think people who file for bankruptcy are deadbeats, but change their tune when their debts become untenable. Illness, extended unemployment and other financial hardships can result in a devastating financial situation. If you are in this situation, this article will help you learn more about bankruptcy.
Do not consider paying off tax debt with credit cards and filing for bankruptcy afterward. It won’t work. In most states, you will still owe money to the IRS and have to take care of the interest of your credit cards. Transferring the debt to another medium (e.g. a credit card) won’t magically make a tax debt discharagable, either. There isn’t any reason to use a credit card to pay the tax bill since the bill can be discharged anyway.
When you document your financial records, it is vital that you are 100% truthful in order to have a successful resolution to your bankruptcy process. Not only is hiding income and assets wrong, it is also a crime.
Don’t fear reminding your attorney of any specific details of your case. Don’t assume that he will remember something you told him weeks ago. All information submitted to the court with your signature needs to be double checked.
If you’re going to file bankruptcy, you need an attorney. There are a lot of things to do during bankruptcy and that may be hard for you to understand on your own. When you engage the services of a bankruptcy lawyer, you can be assured of getting the help your need to proceed correctly.
Chapter 13
Remember to understand the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Chapter 7 is the best option to erase your debts for good. This type of bankruptcy ends any relationship you might have with creditors. But, with Chapter 13, you will be in repayment plan for about 5 years prior to any debts you have being totally dissolved. In order to choose the right bankruptcy option, you need to know the differences between these kinds of personal bankruptcy filings.
Take steps to ensure your home is protected. Filing for bankruptcy doesn’t automatically involve losing your home. Depending on if your home’s value has gone down or if it has a second mortgage, you might be able to keep it. You may also want to check out the homestead exemption because it may allow you to keep your home.
Understand the differences between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy. Do some research about these options so you can choose the best one. Before making any decisions, discuss the information you have learned with your lawyer.
If you are making more money than you owe, bankruptcy should not even be an option. It can seem like bankruptcy can be an easy way to avoid paying back your debts, however it leaves a serious mark in your credit report that can last between seven and ten years.
Don’t forget to enjoy your life once your finances get fixed. So many people become stressed when they file. The stress of dealing with bankruptcy could cause you to fall into a depression, unless you take steps to take care of yourself. You must realize that things will get better over time.
Chapter 7
Before you decide to file for Chapter 7 bankruptcy, you should consider what your bankruptcy might have on others, as your family and friends may be affected. You may have your responsibility for your portion of the loan discharged under Chapter 7. This does not dissolve any co-signers of the debt, and your creditors will continue to try and collect from them.
Know the rights that you have as you file for bankruptcy. Many creditors or bill collectors might tell you your debts cannot be included in a bankruptcy. However, there are few debts that cannot be eliminated, like student loans and child support payments. Should you face a creditor like this, and you are informed that the debt is not valid under the bankruptcy. These types of infractions should be reported.
Do not put off filing for bankruptcy. Some folks ignore financial difficulties for a long time, and this can be disastrous. Being in debt can quickly put you into very deep hole and if you do not rectify the situation fast, you could face wage garnishment or even worse, foreclosure. As soon as you realize your debts far outweigh your income, call a bankruptcy lawyer to talk about what your choices are.
Prior to filing, do not use your credit card to get a cash advance, knowing your debts will be eliminated. This is against the law and it is fraud. After the bankruptcy process you can be made to pay it all back to the creditor.
Don’t stress about trying to determine whether bankruptcy is something you must do. Filing for bankruptcy is a hard decision to make but if you wait too long, your situation will get worse. Going to a lawyer as soon as you can is the best to remain in control of your situation.
Before you decide to file a bankruptcy claim, you need to first come to realization that it’s time to start living a more financially responsible life. The period before your filing is not the time to run up additional debts. When looking at your situation, a judge will take both your past and current credit history into consideration. Try demonstrating that your current behavior and financial habits have positively changed.
Be sure to take care in choosing a lawyer to handle your personal bankruptcy case. There are a disproportionate number of inexperienced lawyers working in the bankruptcy field. Ensure that the attorney you choose is experienced and has the proper license. Information on lawyers and their ratings by clients can be found on the Internet.
If you have tried everything you can think of to resolve your financial difficulties, filing for personal bankruptcy may be your only option. There is no need to feel stress if you are faced with this situation. Reading this article will result in you finding useful information.
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