A lot of people in this day and age are deeply into the debt trap. They are harassed by collection agencies and creditors and their finances under control. If you find yourself in these circumstances, then you might want to think about personal bankruptcy. Continue on to the article so you can figure out if this is something you should do.
Think twice if you have struck upon the idea of paying off your taxes by credit card and subsequently filing for personal bankruptcy. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. A common rule is that dischargeable tax means dischargeable debt. So as you can see, in this situation there is no need to use the card when the debt will be discharged when you file for bankruptcy.
Be certain you understand all you can about bankruptcy by using online resources.Department of Justice and American Bankruptcy Attorneys provide excellent information.
You have other options available like counseling for credit that consumers can use.Bankruptcy is a permanent part of your credit, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. Not only is hiding income and assets wrong, it is also a crime.
You shouldn’t dip into your retirement savings unless the situation calls for it. While dipping into your savings is likely to be necessary, never completely wipe it out which would only leave you in worse financial shape in the future.
Unsecured Credit
Prior to filing your bankruptcy petition, go over the list of assets that cannot be seized by creditors. There are some assets that cannot be seized through bankruptcy, and the law lists those assets. Be sure that you study this list. Make yourself aware of any assets you have that could be seized. If you do not read this list, you could be in for some nasty surprises in the future, if some of your most prized possessions are seized.
You might experience trouble receiving any unsecured credit after filing for bankruptcy. If so, instead you should turn your attention to secured credit cards. This will demonstrate that you’re serious when it comes to having your credit record in order. After a while, you are going to be able to have unsecured credit cards too.
Don’t pay for the consultation and ask a lot of questions. Most lawyers provide a consultation for free, so meet with several. Only make a decision after you have met with several attorneys and all of your concerns and questions were answered. It is not necessary to make a decision right away.This allows you extra time to interview several attorneys.
You could see about filing for Chapter 13 personal bankruptcy. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. The plan is usually for a term of three to five years, and a discharge will be granted at the end of that term. Remember that if you even miss one payment that’s due under this plan, the court could dismiss the whole case.
Before you decide to declare bankruptcy, be sure that other solutions aren’t more appropriate for your case. If your debts are really not overwhelming, you can join a counseling program or straighten your finances out by yourself. You may have the ability to negotiate much lower payments, but be sure to get any debt agreements in writing.
Make sure that you meet with an actual lawyer and not an assistant or paralegal, because it is illegal for these people to give legal advice.
Pay attention to how you satisfy any personal debts before filing for bankruptcy. Check the bankruptcy laws in your state to make sure you have not done anything in the past year to make yourself ineligible to petition for bankruptcy. Before making any final decision concerning your finances, you should be educated on the rules of bankruptcy.
Chapter 13 Bankruptcy
Consider filing a Chapter 13 bankruptcy for your filing. If you have less than a quarter of a million dollars in debt that is unsecured and a regular income, Chapter 13 bankruptcy is something you are able to file for. This plan normally lasts from three to five years, your unsecured debt will be discharged. Keep in mind that missed payments will trigger dismissal of your whole case to get dismissed.
Don’t believe the myth that declaring bankruptcy means you lose everything you own. Personal property can be kept. Personal property includes items like furniture, electronics, jewelry, and clothing. Your current state’s laws, deciding between Chapter 7 or 13, and your current financial position will determine just how much you get to keep.
Look into all the alternatives to bankruptcy before filing. Loan modification plans can help you get out of foreclosure. The lender can help your financial situation by getting interest rates lowered, so they may be willing to forgive some fees, change the loan term or reduce interest as ways of assisting you. When all is said and done, the creditors want their money, and they are willing to make concessions to get it and prevent the debtor from declaring bankruptcy.
In order for this to be considered, you must have bought your car in excess of 910 days before filing, you need a solid work history and the car should have been bought 910 days or more prior to you filing.
If you find a job right before filing your bankruptcy papers, and finally have a steady income, you may still want to file for bankruptcy. Bankruptcy may still be right for you. Filing alters your life dramatically. Should you file prior to earning your first paycheck, that money will not be considered when it comes to how you will repay.
Clearly, significant resources and assistance can be had by anyone contemplating personal bankruptcy. If you deal with your stress in a positive way and make level-headed decisions, your bankruptcy filing will be a step in the right direction for a renewed financial future.