It’s difficult for anyone to file bankruptcy, but sometimes it can be the only option. Arming yourself with valuable insights helps when filing a claim. In the following article you can pick up some handy advice based on the experiences of other people who have had to deal with the bankruptcy process.
Tax Obligations
If you are thinking about paying off your tax obligations with a credit card and then filing bankruptcy, think again. In many areas of the country, this debt will not be dischargeable, and you could be left owing a significant amount to the IRS. If the tax can be discharged, so can the debt. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.
Exhaust every other option before making the decision to file for personal bankruptcy. Alternatives do exist, including consumer credit counseling. If you file for bankruptcy, a mark is permanently left on your credit. Therefore, before you do this, you should utilize all the other options that you have.
Never lie about anything in your bankruptcy petition. 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.
Although you can find many bankruptcy attorneys listed in your local Yellow Pages or online, it’s best if you can find one through the personal recommendation of a friend, family member or acquaintance. Companies are constantly popping up, claiming to help, yet only seek to profit from your misery. In ensuring that your bankruptcy is as simple as possible, trusting your attorney makes a big difference.
Keep with what you have decided to do. 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. If the repossession occurred within 90 days from your filing date, it is possible that some of your property can be returned to you. Speak with your attorney about filing the correct petition to get your property back.
Never pay for a consult with a bankruptcy lawyer, and ask plenty of questions. Most lawyers provide a consultation for free, so consult with many of them before picking which one you want to hire. Decide which lawyer you like best buy reviewing all of the lawyers’ answers to your questions. Choose the lawyer who addressed your issues the best. After your consultation, take your time to make your decision. Take the time to meet with a number of attorneys.
Chapter 7
Be certain that you can differentiate between Chapter 7 and Chapter 13 bankruptcy. Every one of your debts will be gone if you decide to go with Chapter 7. With very few exceptions, the connections between you and your creditors will be severed. On the other hand, filing for bankruptcy under Chapter 13 means you will have 60 months to pay your debts back. In order to choose the right bankruptcy option, you need to know the differences between these kinds of personal bankruptcy filings.
You should weigh every option before thinking about bankruptcy. For example, you can always talk with a lawyer to see about different options through creditors or other means that will not require wiping the entire slate clean. If foreclosure looms, think about getting your loan plan modified. The lender wants their money, so they may be willing to forgive some fees, change the loan term or reduce interest as ways of assisting you. Creditors want their money. Often, they are willing to work out repayment plans with you in order to get it.
After your initial filing, take time to enjoy yourself a bit and get your mind off of it. It is common for people to stress when filing. Make sure you take care of your part and let your attorney do the rest. Your life will most likely improve once you’re over this hump, so relax.
Even if you are involved with Chapter 13 bankruptcy, it is still possible to get a mortgage or an automobile loan. However, there are steps which must be taken to ensure you are within the law of bankruptcy. You will have to see your trustee and the approval for this new loan. Draw up a budget, demonstrating that you can afford the new loan payment. The odds are also good that you will be asked exactly why you’re purchasing a new item. Make sure you have a good reason.
It is important to understand your rights when you file for bankruptcy. There are bill collectors who will claim that you cannot add your debts to your bankruptcy case. What you can’t file on is very small, like student loans or child support payments. If your creditors are telling you any other kind of debts cannot be cancelled, get a written proof and send it to the general office of your state’s attorney to report this illegal behavior.
Be aware of the fact that you may be under a great of stress while you deal with your bankruptcy. To help yourself deal with this stressful situation, make sure you hire a legitimate attorney. Don’t allow cost to determine who you hire. Your attorney does not need to cost a lot, but they do need to have a lot of experience. Get referred from others who’ve been in the same situation, check the BBB, and interview several people through free consultations. You could even attend a court hearing to see how an attorney handles his case.
Nobody wishes to file for bankruptcy, but there are cases where it is simply necessary. If you read through the information above, you’ve gathered a little bit of insight provided by other people who have had to deal with bankruptcy. You will feel more relaxed about your own path when you learn from people who traveled it before you did.
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