Personal bankruptcy is always an option for those who have had possessions, such as vehicles, repossessed by the Internal Revenue Service. Bankruptcy can wreak havoc on credit, but it may be the only way out of your situation. The following article will provide some basic information about filing for bankruptcy and its possible consequences.
Do not give up hope. When you file for bankruptcy you may be allowed to recover property like your car, electronics or jewelry that might have been repossessed. If your property has been repossessed less than 90 days prior to your bankruptcy filing, there is a good chance you can get it back. Discuss your options with a good lawyer who can help you with the filing of your bankruptcy petition.
It is wise to meet with several lawyers before making a final decision, take advantage of the free consultations to find one that is a good fit for you. Ensure that your meeting is actually with the attorney, not with a paralegal or an assistant. People in these positions are unable to offer legal advice. Hiring a lawyer could help you become comfortable with the legal things that you will encounter.
If you make more money than you need to pay your bills, you should not file for personal bankruptcy. 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.
If you are worried about your car being repossessed, consult your attorney about trying to get the monthly payment lowered. A lot of the time, your payments may be lowered due to Chapter 7 bankruptcy. There are a few requirements that you have to meet to be eligible, though. You have to have bought the car more than 2.5 years ago, your loan’s interest rate needs to be over a certain amount, and your employment history has to be good.
Know the rights that you have as you file for bankruptcy. You might hear from your creditors that your debts cannot be canceled through bankruptcy. Few debts exist that are not covered by bankruptcy, such as student loans or child support. If any debt collectors tell you that their debts can’t be bankrupted, make a report with your state attorney general.
Do not forget to list each and every debt you have. If you do not do so accurately, your petition could be dismissed, or at the very least delayed. The most meaningless, innocuous finance or expenditure needs to be listed when you file a claim. This includes any jobs you have on the side, any vehicles you have and any outstanding loans.
Personal Bankruptcy
Know the rules of personal bankruptcy prior to petitioning. There are many traps in the bankruptcy laws that could trip up your case. Some mistakes in your papers can cause your case to be dismissed. Spend some time learning about personal bankruptcy. Doing so will make the process a lot easier.
Never take huge cash advances directly from your credit cards before you file for bankruptcy, since you know that all debts will be erased from these cards. If a creditor notices that activity they can constitute it as fraud and sue to have you pay it all back even after your bankruptcy is complete.
Filing for bankruptcy does not mean that you lose all of your assets. You can keep some personal property. This will include things like clothes, jewelry and electronics. The laws of your state, the kind of bankruptcy you go for, and your finances will determine whether you will lose large assets like your car or your home.
Credit Reporting Agencies
Once a few months have passed after your bankruptcy, contact the three major credit reporting agencies and request copies of your report. Check that your reports accurately reflect all your closed accounts and discharged debts. Contact the credit reporting agencies if there is a discrepancy in order to rebuild your credit.
When you file for bankruptcy, you want to be certain that your papers include every debt that you need to get discharged. Debts that you leave out of your filing paperwork will not be addressed during the bankruptcy proceedings. You need to ensure that you account for every debt, so you do not miss any that are eligible for being discharged.
Some attorneys offer a phone service for free where creditors will be referred to when they wish to contact you regarding an account that’s delinquent. You just provide the number, and they call to confirm that the debt is part of your bankruptcy. This can stop collectors from harassing you at home.
Do your research ahead of time to find out if you permitted to get a Homestead Exemption with Chapter 7. If you don’t, the possibility may exist for you with Chapter 13. For some people it is a good idea to convert your Chapter 7 case to a Chapter 13; talk to your lawyer about which action to take next.
Check each debt to be sure everything can be cleared through bankruptcy to avoid any excessive filing. Debts like student loans may stay in your financial history regardless. These types of debts need to be taken care of through alternate means, such as credit counseling or debt consolidation.
As said in the beginning of the article, personal bankruptcy is always an option. Just be sure that you do not use it as your first choice. As long as you’re properly informed about which moves to take and when, you should have little trouble navigating the process and ultimately restructuring your credit.
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