Professional Advice For Dealing With Personal Bankruptcy
Posted at by PConran on category BankruptcyIs your financial situation bad and you think the only solution is bankruptcy? You are not the only one. Some people have turned to bankruptcy, as it is their only option for getting rid of a bad financial situation. The tips in this article will show you how to make your bankruptcy work for you.
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. In many areas of the country, this debt will not be dischargeable, and you could be left owing a significant amount to the IRS. One thing that you should remember is that if your tax is dischargable, your debt will also be dischargeable. This means using a credit card is not necessary, when it will just be discharged.
When it soaks in that filing for personal bankruptcy, don’t use all of your retirement funds, or all of your savings to resolve insolvency or pay creditors. You shouldn’t dip into your IRA or 401(k) unless there is nothing else you can do. Though you may need to use a bit of your savings, try hard to maintain some of your reserves so that you have some degree of flexibility going forward.
Always be honest when filling out paperwork. Do not try to shield some assets or income from your creditors. This can get you in serious trouble and prevent your bankruptcy petition altogether.
Prior to filing for bankruptcy, discover which assets cannot be seized. The kinds of assets which may be exempted during bankruptcy proceedings are listed in the Bankruptcy Code. It is vital that you completely understand which assets are protected and which assets can be seized prior to filing bankruptcy. If you don’t read this list, there is a chance that you might get nasty surprises when they take your things away.
Protect your house. Filing for bankruptcy does not mean you have to lose your home. It may be possible to keep your home if the value has depreciated, or there is a second mortgage. Otherwise, look into the homestead exemption which may allow you to stay in your home if you meet financial threshold requirements.
There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. Take time to research this online and see the pros and cons for filing each one. If you do not understand what you are reading, talk to your attorney before making that serious decision.
It is important to look at your financial situation from all possible angles before you decide to file for bankruptcy. You can get your interest rates reduced or enter into a debt repayment plan. Before you file bankruptcy, ask your attorney if any of these are viable alternatives for you. Various loan plans out there can be a lifesaver if you’re facing a foreclosure. Your particular loan holders can provide a lot of assistance if you’re just willing to speak with them. You can negotiate lower rates, longer terms, and other means of repayment that may keep you from having to file a claim. Creditors want to recoup the most money possible from debtors, and they can often get more through debt repayment plans than bankruptcy procedures.
The introduction to this article emphasized that many, many people have filed for bankruptcy in the past and many will in the future. However, you are in a better position to do so than they are, because you’ve read this article. Use these tips to help make sure you get through the process of filing bankruptcy with a minimum of stress.