Discover All The Ins And Outs Of Personal Bankruptcy
Posted at by PConran on category BankruptcyFeeling sad and frustrated are a couple of the many emotions people feel when going through bankruptcy. Do not let your emotions get the best of you, you can clear up your life and stop worrying as much. However, bankruptcy isn’t a process that will forever hurt your future.
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. You will find few states that discharge this kind of debt. You may also wind up owing a lot of money to the IRS. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. Therefore, you should not pull your credit card out for purchases if it is just going to be discharged during the bankruptcy.
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. Resisting the temptation to hide income or valuable assets from the bankruptcy trustee is a smart way to avoid potential complications, penalties, and the possibility of being barred from re-filing in the future.
If a personal recommendation comes your way, this should be a lawyer you focus on. You want your bankruptcy to go smoothly, and the Internet is rife with fly-by-night companies whose only goal is to prey upon the financially desperate.
Never pay to have a consultation with a lawyer, and ask a lot of questions. Most attorneys offer free initial consultations, and you should take advantage of the chance to interview multiple practitioners. You should make a final decision only once all of the questions or concerns are sufficiently attended to. After your consultation, take your time to make your decision. You could even go to different lawyers for advice.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. If Chapter 7 is what you file, your debts will get eliminated entirely. Any ties that you have with creditors will be dissolved. On the other hand, filing for bankruptcy under Chapter 13 means you will have 60 months to pay your debts back. It’s imperative that you know the differences among the various categories of bankruptcy so that you are able to choose the wisest one for you.
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. Debts that involved a co-signer can be discharged in Chapter 7 bankruptcy. However, anyone sharing the loan with you may be forced to pay back the entire amount for the amount in full, which spell financial disaster for them.
It is possible to obtain new vehicle and home loans while a Chapter 13 case remains active. This is harder. You will have to get this loan approved by your trustee. You need to show them why and how you can handle paying back the new loan. You also need to be prepared to answer questions about your need for the new item.
You should now see there is hope, even if you have had to file for bankruptcy. Though it is very difficult, personal bankruptcy is not the end. Take the information that has been provided here to you and you can turn this situation around for the positive.