Filing for personal bankruptcy protection is an important strategy for people that have had assets, such as their vehicle, seized by the IRS. Bankruptcy will hurt your credit, this is true. However, it may be the only viable option available to you. Continue reading this article to understand what you need to know about bankruptcy and the likely end result of going through one.
When you feel certain that you must file for personal bankruptcy, refrain from squandering your life savings to pay off unsecured debt. Avoid touching your retirement accounts whenever possible. Though you may have to break into your savings, keep some available for difficult times. You will be glad you did.
It is essential that you are honest and forthright in the documentation you provide for your bankruptcy filings. Remember that if you hide your valuable assets or income from your bankruptcy trustee, you may risk a number of penalties and complications. Among these is the possibility that you could be blocked from ever filing again.
When it comes to informing your attorney about your case, don’t be fearful. Don’t assume that they will recall every detail that you go over with them without a friendly reminder. Don’t fear speaking up since it affects your case and future.
After a bankruptcy, you may still see problems getting any kind of unsecured credit. A great way to rebuild your credit is to apply for a prepaid credit card. They offer you the chance to demonstrate the seriousness with which you now take your financial obligations. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
Keep at it! Once bankruptcy has been filed, you may be able to regain possession of items such as electronic goods or cars that were taken away from you. You should be able to get your possessions back if they have been taken away from you within 90 days before you filed for bankruptcy. Talk with an attorney who can guide you through the process of filing a petition.
Speak to a bankruptcy attorney about what new laws may be going into effect before your bankruptcy filing. Bankruptcy laws are always changing, and you need to be aware of any changes so your bankruptcy can be properly filed. To stay up-to-date on these laws, check out your state’s government website.
There are two different kinds of personal bankruptcy you can file for: Chapter 7 and Chapter 13. Take the time to learn about them extensively, and then figure out which one will be best for your particular situation. Do not hesitate to have your lawyer explain any details that seem difficult to grasp. This will help ensure you make the right choice when filing.
Unsecured Debt
Consider filing a Chapter 13 bankruptcy. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. This will allow you to keep your personal property and real estate and repay your debts via a debt consolidation plan. These kinds of plans usually range across 3, 4 and 5 years. Once this is done, all your unsecured debt will get discharged. However, if you were to miss a payment, the court would dismiss your case right away.
Know the rights that you have as you file for bankruptcy. Bill collectors can try to scare you into believing that your debt will not be cleared. Few debts exist that are not covered by bankruptcy, such as student loans or child support. If a collector tries to convince you that some other type of debt, such as a credit card, is non-discharagable, get the company’s information and send a report to your state attorney general’s office.
Finding out about your personal bankruptcy options is the difference between a successful and an unsuccessful claim. Just be sure that you do not use it as your first choice. Knowing the ins and outs of bankruptcy can make the filing process easier and make it less likely that you’ll have to forfeit your property.
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