Filing for bankruptcy is still an option for anyone who has had their possessions repossessed by the IRS.Although bankruptcy tends to destroy a person’s credit, it may be the only viable option.The following article will provide you with all the information you need to understand the results of choosing to file for bankruptcy and its possible consequences.
Most people end up filing for personal bankruptcy because they owe more than they make. If this describes your situation, it makes sense to become familiar with relevant laws. Bankruptcy laws vary from state to state. In a few states, they see to it that your house is protected. This is not the case when it comes to other states. It is best to become familiar with your state’s laws regarding bankruptcy before you take the steps to file.
If you’re in this situation, be sure that you know what the laws of your state are. Different states have different laws when it comes to bankruptcy. For example, the personal home is exempt from being touched in some states, but others do not. You should be aware of local bankruptcy laws for your state before filing.
The Bankruptcy Code has lists assets considered exempt from being affected by bankruptcy. If you fail to do so, there is a chance that you might get nasty surprises when they take your things away.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. Most places will not consider the debt dischargeable, meaning you will have to pay the IRS a lot of money. Should the tax be dischargeable, the debt is often dischargeable as well. There isn’t any reason to use a credit card to pay the tax bill since the bill can be discharged anyway.
Filing for personal bankruptcy may possibly enable you to reclaim your personal property that have been repossessed, like your car, electronics or other items that may have been repossessed. You should be able to get your possessions back if the repossession occurred fewer than 90 days before you filed for bankruptcy. Speak to a lawyer that will be able to help you with guidance for the entire thing.
Before making the decision to file for bankruptcy, ensure that all other options have been considered. For example, if your debt is small, you might be better off if you went through consumer credit counseling. You might also be able to negotiate lower payments yourself, but be sure to get any debt agreements in writing.
If possible obtain a personal recommendation for a bankruptcy lawyer instead of randomly choosing one. There are so many dime-a-dozen companies out there who make it a practice of preying on financial desperation. You need to make sure your bankruptcy goes smoothly, so find someone you know you can trust.
Chapter 7
Be sure you know how Chapter 7 and Chapter 13 bankruptcy cases. Chapter 7 involves the elimination of all of your debts for good. This includes creditors and your relationship with creditors. Chapter 13 bankruptcy though will make you work out a five year repayment plan that takes 60 months to work with until the debts go away.
If you’re going to file bankruptcy, you need an attorney. Personal bankruptcies are detailed and complex processes, and you may miss something that costs you money. Talk to a bankruptcy lawyer, they can help clarify anything that you might have confusion with.
Understand the differences between Chapter 7 bankruptcy and a Chapter 13 bankruptcy. Take the time to find out about each one online, and then figure out which one will be best for your particular situation. If you have trouble understanding the wealth of information, take the time to go over the specifics with your lawyer before making a decision on which type you will want to file.
Consider filing for Chapter 13 bankruptcy is an option.If you have regular income and under $250K in unsecured debt, 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.
Always protect your house. Filing for bankruptcy does not mean you have to lose your home. You might be able to keep your home, for instance, if you have two mortgages or if your home has lost its value. Check to see if you pass the requirements necessary to file for a homestead exemption.
That stress can cause depression, if you do not take the necessary steps to fight it. Life is going to get better after you finally get through this.
In order for this to succeed, your car loan must be one with high interest, you need a solid work history and the car should have been bought 910 days or more prior to you filing.
Don’t forget to enjoy yourself during your bankruptcy. It can be several months between the initial filing and the final discharge of debts. Depression and burn-out from pent of stress will do nothing to help your situation, so it is critical to let go a little. Things will be sunnier after you take positive steps to move forward.
It is possible to obtain new vehicle and home loans while a Chapter 13 bankruptcy. You will have to see your trustee to gain approval for this new loan. You will need to show them why and how you will be able to afford your new loan. You also need to be prepared to answer questions about your need for the item.
Don’t wait until the last minute to file for bankruptcy. It is a big mistake to avoid financial problems, this very rarely happens. It doesn’t take long for debt to become unmanageable, and avoiding the problem will make things worse. As soon as you’ve decided that you no longer have a handle on your debts, call a bankruptcy lawyer to talk about what your choices are.
Include your entire financial information when you file for bankruptcy. If you don’t do this, your file could be delayed or dismissed. No sum is too small to be included; err on the side of caution and include everything. When it comes to the types of things you might not be thinking about adding, just think about any automobiles you have, any money under the table you’re making, etc.
As stated previously in this guide, personal bankruptcy can always be an option. However, it should not be anyone’s first choice because it does not reflect well on credit. Don’t sit back and let the process take control of you. Take control of the process by doing your research so that you don’t lose more than you need to.