Tips And Hints On Fixing Your Finances To Avoid Bankruptcy
Posted at by PConran on category BankruptcyAre you financially insolvent with bankruptcy looking like the only way out? Fear not, you are in good company. Millions of people, each year, have chosen bankruptcy as their only option for financial freedom. The article you are about to read will give you bankruptcy tips you should use to make sure everything goes the way it should.
Do not use a credit card to pay income taxes and then file for bankruptcy. In a lot of places, the debt cannot be discharged, and you may still owe money to the IRS. Should the tax be dischargeable, the debt is often dischargeable as well. Therefore, you should not pull your credit card out for purchases if it is just going to be discharged during the bankruptcy.
One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. It is vital that you disclose all information about your assets and income so there are no delays or penalties, such as a court barring you from filing again later in the future.
Determine which assets won’t be seized before filing for bankruptcy. You can find a listing of the asset types that are excluded from bankruptcy in the Bankruptcy Code. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. If you neglect this important step, you might be blindsided when a possession that is important to you is taken to repay creditors.
Keep at it! There may still be way to get repossessed items back after you file for bankruptcy. If it has been 90 days or less between the repossession of your property and your filing, you might be able to get your property back. Talk with an attorney who can guide you through the process of filing a petition.
Be aware of recent changes, if any, in the bankruptcy code. This area of law is in constant flux and it is imperative that you know where the law stands at the time you file for your bankruptcy. To stay up-to-date on these laws, check out your state’s government website.
The two main kinds of bankruptcy are Chapter 7 and Chapter 13. Make sure you understand them so you know what is best for you. Chapter 7 bankruptcy completely wipes out your debt. Any debts that you owe to creditors will be wiped clean. A Chapter 13 filing involves a repayment plan, though. Typically, you will make a partial payment against your debts over the next 60 months before the balance of the debts is lifted. To make the wisest choice, you will need to understand the consequences of each of these two options.
If your paycheck is larger than your debts, avoid filing for bankruptcy. Sure, bankruptcy can get rid of that debt, but it comes at the price of poor credit for 7-10 years.
Before filing for bankruptcy under Chapter 7, make sure that you consider the implications this will have on any of your co-debtor, who are usually family members, close friends or business associates. If you choose Chapter 7, you are no longer responsible for joint debts. However, if you had a co-debtor, they will be required to pay the debt.
Know the rules of personal bankruptcy prior to petitioning. You want to understand what is going to happen when you file for your specific case. A variety of mistakes will lead to dismissal of your case. Make sure you are fully aware about personal bankruptcy before you make any final decisions. This can save you a lot of time and make the entire process easier.
Like you have heard, you are not alone in your financial problems. Others just like you are filing for bankruptcy as well. But since reading this article, you now have information that others don’t have. Put the tips you learned into action so that you can ensure your bankruptcy process moves along without trouble.