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, like a major medical emergency, can cause someone to face bankruptcy. If that is your situation, the following article will be of great assistance.
Do not consider paying off tax debt with credit cards and filing for bankruptcy afterward. It won’t work. In many areas of the country, this debt will not be dischargeable, and you could be left owing a significant amount to the IRS. In most cases, you can use the adage that “a dischargeable tax is a dischargeable debt.” If you live in an area where tax can be discharged through bankruptcy, financing your tax bill is pretty pointless.
If you’re in this position, you need to familiarize yourself with regional bankruptcy laws. Each state has its own set of rules regarding personal bankruptcy. For instance, in some states you can keep your home and car, but others do not. You should be familiar with the laws before filing for bankruptcy.
You might find it difficult to obtain an unsecured credit after a bankruptcy. If you do, think about applying for a couple of secured credit cards. This will allow you are making an honest attempt at reestablishing your credit worthiness. If you pay your secured card off on time, you will ultimately be able to receive an unsecured card.
Always be honest and forthright when it comes to your bankruptcy petition. You might feel tempted to not declare certain assets in your bankruptcy in order to protect them from forfeiture, but if you’re found out, the process could take longer, or worse, you might be banned from filing for bankruptcy completely.
The Bankruptcy Code contains a list of various assets that are exempted when it comes to the bankruptcy process. If you are not aware of the rules, you may be unpleasantly surprised sometime down the road if any of your most valued items are seized.
Filing a bankruptcy petition might facilitate the return of your property, like your car, electronics or other items that may have been repossessed. You should be able to recover repossessed property if the repossession occurred fewer than 90 days before you filed for bankruptcy. Speak to a lawyer who will be able to help you with guidance for the entire thing.
Keep working to improve your situation. Certain property cannot be repossessed while you are in the process of filing for bankruptcy so be sure to learn about the laws in your state. If the repossession occurred within 90 days from your filing date, it is possible that some of your property can be returned to you. Consult with a lawyer who can help you along with filing the petition.
Don’t pay for an attorney consultation with a lawyer who practices bankruptcy law; ask him or her anything you want to know.Most lawyers provide a consultation for free, so meet with a number of them before you retain one. Only make a lawyer if you have met with several attorneys and all of your questions were answered. You do right after the consultation. This allows you the opportunity to speak with numerous lawyers.
Chapter 13 Bankruptcy
Be sure you know how Chapter 7 and Chapter 13 differ. The Chapter 7 variety can help you eliminate your debts almost entirely. All of your financial ties to the people you owe money to will disappear. If however you enter Chapter 13, you will go into a five year repayment program prior to your debts dissolving entirely. Both options have advantages and drawbacks, so do your research before deciding.
Consider filing for Chapter 13 bankruptcy is an option.If your total debt is under $250,000 and you have consistent income, you can file for Chapter 13 bankruptcy. This plan normally lasts from three to five years, your unsecured debt will be discharged. Keep in mind that even missing one payment can be enough for your case.
This kind of stress can take a heavy toll on your personal life, if you don’t combat it. Life will surely get better after you just need to make it through the bankruptcy process.
Bankruptcy laws are very exact and very important, so ensure that you’re well aware of all current laws before you file a petition. There are often laws prohibiting the transfer of money from the filer for a certain period preceding the bankruptcy filing. Also, the filer can not increase their debt before filing.
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.
Don’t spend too much time deciding whether or not you must do. It is difficult to admit that you are in over your head financially, but your debt will only grow larger if you put off your decision.
When a bankruptcy becomes a possibility, you should look at retaining a lawyer. An attorney can offer valuable advice and help to simplify an extremely complex process. Your lawyer can also show you how to fill out the paperwork, file it properly and be there to answer any questions you may have.
If you have attempted every single option for dealing with your finances and you still come up dry, then you may have to file for bankruptcy. You should not let it ruin your life though if you find yourself facing this decision. Although the bankruptcy process can last several months, you will be less stressed out if you understand everything that is happening.