Anger, anguish, frustration, and sadness are all emotions felt by those who experience personal bankruptcy. These feelings can make it hard to make it through the day, and can leave people feeling stuck. Bankruptcy should be looked at as a way to move forward, and get things back on the right financial track again. This article will help you understand how.
People generally mostly feel the need to get a bankruptcy filed for when they have more money owed than they can get. If this sounds like you, start familiarizing yourself with your state laws. Bankruptcy laws vary from state to state. Some states protect your home, and others do not. Before filing for personal bankruptcy, be certain that you are familiar with the laws.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. Credit card debt is handled charge by charge during bankruptcy, and in most states, tax debt cannot be discharged through bankruptcy. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. This means using a credit card is not necessary, when it will just be discharged.
When it soaks in that filing for personal bankruptcy, don’t use all of your retirement funds, or all of your savings to resolve insolvency or pay creditors. Do not tap retirement accounts unless there is no other alternative. Though you may need to use a bit of your savings, try hard to maintain some of your reserves so that you have some degree of flexibility going forward.
Do not attempt to conceal any assets when filing for bankruptcy because you may be penalized when they are discovered. Good or bad, you must tell your bankruptcy attorney everything about your financial situation. Put everything out on the table and craft a wise plan for handling the situation the best you can.
You should never give up. When you file for bankruptcy you may be allowed to recover property like your car, electronics or jewelry that might have been repossessed. Filing for bankruptcy may allow you to regain ownership of recently repossessed property. Talk to your lawyer to find out how to go about properly filing a petition.
Be sure you know what the difference between Chapter 13 and Chapter 7 bankruptcy is. Weigh all the information you can find on- and off-line to make an educated decision. If you do not understand what you are reading, talk to your attorney before making that serious decision.
Consider if Chapter 13 bankruptcy is an option. If you currently have some income and don’t have more than $250k in debt, you can declare bankruptcy. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. This plan normally lasts from three to five years, in which you’ll be discharged from unsecured debt. Stay mindful that should you for any reason miss even one plan payment, your whole case is going to get thrown out by the court system.
Do not forget to be around those you love. Filing for bankruptcy, and all that comes with it, can be hard to handle at times. It is long, hard and sometimes leaves people feeling guilty or ashamed. Many people tend to hide until their process is completed. However, self imposed isolation will only make you feel even worse about the process and could even lead to depression. Thus, you must keep living your life and socializing with those you love, no matter what is going on with your bankruptcy.
If you really want to keep your vehicle, speak with your lawyer about possible choices. In many cases, you can reduce your payment by filing a Chapter 7 petition. You must have bought the car 910 or more days before you filed, the loan must have a high interest rate, and you have to have a secure and steady working history in order for that to work.
Chapter 7
Keep in mind that filing for Chapter 7 bankruptcy may affect other people than just you, including family members, and in some cases, business associates. You will be freed of responsibility for debts that you share if you make a successful Chapter 7 filing. Although filing for bankruptcy excludes your from financial responsibility, co-signers will still be expected to pay the loan amount in full.
You now have some great advice, thanks to the information shared here. You should now understand that you have options when it comes to bankruptcy. It can be difficult in the beginning, but bankruptcy can be effectively managed. Keep the advice here in mind so that you can work toward getting back on your feet!
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