The Pros And Cons Of Considering Personal Bankruptcy
Posted at by PConran on category BankruptcyMany people think people who file for bankruptcy are deadbeats, but change their tune when their debts become untenable. Situations like a job loss or a divorce can bring you to a situation where the only solution is bankruptcy. You may find the suggestions in this article very helpful if you are in such a situation.
It is simple math; when you owe more than you are able to pay off, a bankruptcy is the likely solution. When you are faced with this issue, begin to familiarize yourself with your state’s laws. Different states have different laws regarding bankruptcy. For instance, in some states you can keep your home and car, while other states prohibit this. You should be aware of local bankruptcy laws before filing.
You should check with the personal bankruptcy resources available online to educate yourself thoroughly before you begin the process. The United States There is solid advice available from the NACBA, (Consumer Bankruptcy Attorneys’ association) the ABI, (American Bankruptcy Institute) and the United States Department of Justice. The more you know about it, the better you are able to make the best decision for your situation and to make sure that the bankruptcy proceedings move forward with minimal setbacks.
Do not use a credit card to pay income taxes and then file for bankruptcy. Most states do not look at this debt as chargeable, and you could end up owing money to the IRS. Should the tax be dischargeable, the debt is often dischargeable as well. This makes using a credit care irrelevant, since bankruptcy will discharge it.
Don’t be reluctant to remind your lawyer about specific details he may not remember. It is wrong to assume that your lawyer will remember every word you ever utter! Speak up if something is troubling you, as this is your future we are talking about here.
Do not give up hope. Filing for bankruptcy may allow you to get back property, such as an auto, jewelry, or electronics, that you may have had repossessed. You may be able to get your property back if fewer than 90 days have passed between the repossession and are filing for bankruptcy. Talk with an attorney who can guide you through the process of filing a petition.
If you are seriously thinking of filing bankruptcy, make sure that you contact an attorney. Bankruptcy is a complex process, and you probably don’t know all the information that is required to navigate it. Personal bankruptcy attorneys can help make sure everything is done properly.
Put forth the effort to grasp the distinctions between Chapter 7 and Chapter 13 bankruptcies. Weigh all the information you can find on- and off-line to make an educated decision. Ask your bankruptcy lawyer to clarify anything you don’t understand before making a final decision about which type of bankruptcy to file.
Consider if Chapter 13 bankruptcy is an option. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. You can keep personal possessions, as well as real estate, while paying into a debt consolidation system. These kinds of plans usually range across 3, 4 and 5 years. Once this is done, all your unsecured debt will get discharged. Bear in mind that if you miss a single payment that is due under your plan, the entire case will be dismissed by the Court.
Once you have completed the bankruptcy filing, you should take time to do something you enjoy. The process of filing for bankruptcy can make people a nervous wreck. This stress could actually cause depression, if you don’t combat it. Life will surely get better after you finish this process.
Once you turn over every other stone and have yielded no answers, then you might find bankruptcy necessary. No matter how you arrived at this place, there is help available to reduce the stress you are under. You can find the information that you need in the article below.