Navigate Financial Difficulties With These Personal Bankruptcy Tips
Posted at by PConran on category BankruptcyBankruptcy effects a myriad of people each with different financial situations. Sometimes it’s the only way out of a nasty financial mess. The information presented here will help you when the sort of circumstances present themselves.
Don’t pay tax requirements with your credit cards with the thought of starting the bankruptcy process afterward, without doing your research first. In a lot of places, the debt cannot be discharged, and you may still owe money to the IRS. Bear this in mind; if the tax can be discharged, then the debt can be as well. Because of this, transferring the debt to your credit card is pointless.
Prior to putting in the bankruptcy paperwork, determine what assets are protected from seizure. To find an itemized list detailing assets exempt from bankruptcy, find the Bankruptcy Code. Make sure to review the list before filing a claim so you know if your valuables will be subject to seizure. Without reading the list, you may be shocked at which possessions can be taken from you.
There is hope! Filing for bankruptcy may allow you to get back property, such as an auto, jewelry, or electronics, that you may have had repossessed. If your property has been repossessed less than 90 days prior to your bankruptcy filing, there is a good chance you can get it back. Speak with your attorney about filing the correct petition to get your property back.
There are two different kinds of personal bankruptcy you can file for: Chapter 7 and Chapter 13. Be sure you go on the Internet and do your research to see what’s best for you. If the information you read is unclear to you, take the time to go over the specifics with your lawyer before making a decision on which type you will want to file.
Look into filing Chapter 13 bankruptcy. With a consistent income source and less than $250k in debt, try filing for Chapter 13. When you file for Chapter 13, you can use the debt consolidation plan to repay your debts, while retaining your real estate and your personal property. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. Consider that if you even miss one payment, your case will not be considered by the court.
Filing bankruptcy under Chapter 13 means you can still get a loan for a car or a mortgage. It is just tougher. You need to speak with your trustee so that you can be approved for a new loan. In order to show that you’re capable of paying off your new loan, prepare a budget that includes its payments. You also need to be prepared to answer questions about your need for the new item.
Don’t let shame consume you during the bankruptcy process. It is not uncommon for bankruptcies to elicit feelings of guilt, remorse and embarrassment. Continuing to let yourself feel that way can damage your emotional health and does not benefit you in your endeavors to deal with your financial situation. Keeping an optimistic view as you deal with your financial woes is the most productive way of dealing with a bankruptcy.
Facing bankruptcy is not a fun situation and cause a lot of stress and anxiety. If you want to protect yourself from stress, see to it that you hire a good attorney. Don’t make your choice to retain a particular lawyer simply because they are the cheapest. Quality is far more important than expense when it comes to a good bankruptcy attorney. Ask people who have used a bankruptcy lawyer for referrals, look them up at your local Better Business Bureau, then schedule free consultations in order to interview them. Often, watching a bankruptcy proceeding can give you clues to the quality of a lawyer.
If you have found yourself facing bankruptcy, it is crucial that you get good advice on what to do next. The process is anything but simple, and information will become your best friend during this difficult time. Much of the information you need was provided to you in the article above.