Helpful Tips On Personal Bankruptcy – Things You Should Know
Posted at by PConran on category BankruptcyAlthough bankruptcy causes stress, it can help financially. Initially, you’ll have to look have to look at your finances, along with others as well. However, once the bankruptcy gets discharged, you can begin to create a better financial situation while all those harassing bill collector phone calls stop. This article is filled with useful tips to help you get through bankruptcy.
Do not consider paying off tax debt with credit cards and filing for bankruptcy afterward. It won’t work. 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. One thing that you should remember is that if your tax is dischargable, your debt will also be dischargeable. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.
Before you file for bankruptcy, find out which of your assets will be exempt from seizure. There are some assets that cannot be seized through bankruptcy, and the law lists those assets. Many belongings may become eligible for repossession or seizure after filing for bankruptcy. If you don’t heed that advice, you might find yourself getting surprised when your favorite things are repossessed.
Keep with what you have decided to do. Filing a bankruptcy petition might facilitate the return of your property, including cards, electronics or other items that may have been repossessed. You may be able to recover repossessed property if the repossession occurred fewer than 90 days ago. A lawyer will be able to assist you with filing the paperwork to get the items back.
Learn all the latest laws before you file bankruptcy. These laws change regularly and you should stay up-to-date so you can make the best decisions. To know what these changes are, go to your state’s website or contact the legislative offices.
A free consultation is standard for bankruptcy attorneys, so shop around before settling on one. Be certain that the person you meet with is really a lawyer. Avoid meeting with paralegals or legal assistants because they cannot give you legal advice. Looking for an attorney will help you find a lawyer you feel good around.
Be sure your home is well protected. You don’t have to lose your home just because you are filing for bankruptcy. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. Check to see if you pass the requirements necessary to file for a homestead exemption.
Consider filing using 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. Generally, this stays in effect for up to 5 years. Afterwards, your unsecured debts clear from your accounts. Remember that if you fail to make any of the payments on time, the court may dismiss your case.
If you make more money than what you owe, filing for bankruptcy is not a good option. Bankruptcy may appear like the easier way to avoid paying your old bills, but it is a huge mark on your credit score and remains there for up to 10 years.
Speak with your attorney about ways you can keep your car. Most of the time Chapter 7 bankruptcy will allow your payments to be lowered. There are a few requirements that you have to meet to be eligible, though. You have to have bought the car more than 2.5 years ago, your loan’s interest rate needs to be over a certain amount, and your employment history has to be good.
When it comes to filing for bankruptcy, there are both positives and negatives. Whatever your reason for doing it, keep in mind that information is the strongest ally you have throughout the entire process. The information in this piece can make bankruptcy easier to handle. If you use these tips, you can file for bankruptcy with the confidence that only information can instill.