How To Protect Personal Property In A Bankruptcy
Posted at by PConran on category BankruptcyThere are many valid reasons for filing bankruptcy. If you lose your job, your spouse or find yourself overwhelmed with bills, filing for bankruptcy might be the only option left. If you are in this situation, the advice listed here can help you.
Don’t pay tax requirements with your credit cards with the thought of starting the bankruptcy process afterward, without doing your research first. In many areas of the country, this debt will not be dischargeable, and you could be left owing a significant amount to the IRS. Bear this in mind; if the tax can be discharged, then the debt can be as well. If you live in an area where tax can be discharged through bankruptcy, financing your tax bill is pretty pointless.
Honesty is of utmost importance during your filing, even though it may be tempting to “pad” your answers a little. 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.
Prior to putting in the bankruptcy paperwork, determine what assets are protected from seizure. There are some assets that cannot be seized through bankruptcy, and the law lists those assets. You need to read the exemptions for your state, so you know what property you can protect. If you don’t read this list, there is a chance that you might get nasty surprises when they take your things away.
You should never pay for your first consultation with a bankruptcy attorney. Make the most of this free consultation by asking lots of questions. Almost all lawyers will give a free consultation, so meet with more than one before making a decision on whom to hire. The lawyer who properly answers your questions is the one you should hire. You do not have to give them your decision right after the consultation. If you’re unsure, don’t hesitate to talk to multiple bankruptcy lawyers.
Be sure to weigh all of your options before deciding to file for personal bankruptcy. One example would be that a consumer credit program for counseling if you have small debts. You could even negotiate for lower payments. However, you should ensure that you always obtain a written record of all the changes to your debt that you’ve agreed to.
A lot of bankruptcy attorneys will let you have a consultation, so try several out. Always ensure that the person you meet with is a real lawyer, not a legal assistant or paralegal. These people can’t give legal advice. By shopping lawyers, you will be more likely to find one that makes you comfortable about the process.
Consider Chapter 13 bankruptcy, if you chose to file. If you posses a regular source when it comes to income, and you have less than $250,000 of unsecured debt, you could file using Chapter 13 bankruptcy. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. It usually takes three to five years to fulfill this plan. When the time is up, you’re unsecured debts will be discharged. Missing a payment under these plans can result in total dismissal by the courts.
After exhausting every avenue for resolving your financial debts, bankruptcy may be a necessity. Do not let this situation cause too much stress for you. Apply the advice from this article to help ease your burden when filing for bankruptcy.