A lot of folks think that filing for bankruptcy is only something losers do, but it is really a good solution in certain situations. A simple change of circumstances, such as a divorce, can cause a situation that can only result in bankruptcy. If you are in this situation, you can find some help from the information in this article.
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. Generally speaking, taxes are not a dischargeable debt. The delays caused by this sort of tactic could leave you owing the IRS a great deal in interest and penalties. In most cases, you can use the adage that “a dischargeable tax is a dischargeable debt.” So, in short, do not use your credit cards to pay off debts right before you file for bankruptcy.
Do not use a credit card to manage your tax issues and then try to file for bankruptcy. In many areas of the country, you cannot get this debt discharged, and you could be left owing a significant amount to the IRS. This means using a credit card is not necessary, since bankruptcy will discharge it.
Always be honest when it comes to your bankruptcy petition.
Don’t feel bad if you need to remind your attorney about any specifics of your case. Many times a lawyer may forget a key detail; therefore, it is important to remind your lawyer of any key information. Speak up, because it is your future on the line.
The Bankruptcy Code lists the kinds of assets that are exempted when it comes to the bankruptcy process. If you are not aware of the rules, you could lose some assets that you value.
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.
Do some research to find out which assets you could lose by filing for personal bankruptcy. The Bankruptcy Code includes a list of the types of assets that are exempt from the bankruptcy process. It is vital that you know the things on this list prior to filing for bankruptcy, in order to determine which of your possessions will be taken away. If you aren’t aware of this, you could lose some assets that you value.
Understand the differences between Chapter 7 bankruptcy and a Chapter 13 bankruptcy. Take the time to learn about them extensively, and look at the advantages and disadvantages of each.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.
The whole process of filing for bankruptcy can seem brutal. It can be hard to face the need to pull away from loved ones during the process. This is not a good idea because staying alone could cause you to feel depressed. So, even though you may be ashamed of the situation you are in, regardless of the current financial situation.
There is hope! If you file for bankruptcy, you might be able to reclaim certain property that has been repossessed, such as your car, electronics or jewelry. If you have property repossessed less than ninety days prior to filing your bankruptcy, you may be able to get it back. A lawyer will be able to assist you with filing the paperwork to get the items back.
Don’t file bankruptcy if you can afford to pay your bills. Although bankruptcy might seem to be an easy way of being able to pay for your debts, it leaves a permanent mark on your credit history for up to 10 years.
This kind of stress can take a heavy toll on your personal life, so do what you can to fight that from happening. Life will get better once you finally get through this.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. There is a wealth of information online about each type of bankruptcy and their respective pluses and minuses. Go to a specialized lawyer to ask your questions and get some useful advice on what to do.
Before going through the Chapter 7 filing process, take time to think about anyone it could affect. However, if you had a co-debtor, which spell financial disaster for them.
It is possible to obtain new vehicle and home loans while a Chapter 13 bankruptcy. You will need to secure the trustee’s approval for a new debt obligation. You need to show them why and prove that you will be able to afford your new loan. You will also have to prepare yourself to explain the reasons you need to be prepared to answer questions about your need for the new item.
If you are earning enough to cover your bills, don’t file for bankruptcy. Bankruptcy may seem to be the easy way out, but your credit report will show the scar for the next ten years.
Know the rights when filing for bankruptcy. Some debtors will tell you your debt with them can not be bankrupted.There are not many debts that can not be bankrupted, child support and student loans.If your creditors are telling you any other kind of debts cannot be cancelled, check the bankruptcy laws in your state or consult an attorney.
Financial Information
Before you decide to file for Chapter 7 bankruptcy, you should consider what your bankruptcy might have on others, as your family and friends may be affected. When filing Chapter 7, you are not longer liable for the debts that you and a co-debtor signed for. However, if you had a co-debtor, they will be required to pay the debt.
Make sure that you disclose every bit of financial information on your debts before filing. If you forget to add these, your petition could be denied. This financial information may include income from side jobs, any vehicles you have and any outstanding loans.
After considering all of your options, you may find that bankruptcy is your only choice. Because circumstance can create financial issues that result in bankruptcy, you can rest easy. Although the bankruptcy process can last several months, you will be less stressed out if you understand everything that is happening.
Filing bankruptcy under Chapter 13 means you can still get a loan for a car or a mortgage. But, it could be harder. You need to contact your trustee so you can get approved for a new loan. When meeting with the trustee, bring a budget which shows that you will be able to afford the payment on the loan you are trying to get. You will need to be able to explain why the purchase is necessary.