Tips For Dealing With The Burden Of Personal Bankruptcy
Posted at by PConran on category BankruptcyThere are many emotions experienced by those going through personal bankruptcy. People sometimes assume incorrectly that they are up against a wall, and there’s no way out. As the following article explains, options do exist for those facing financial difficulty.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS. One thing that you should remember is that if your tax is dischargable, your debt will also be dischargeable. There isn’t any reason to use a credit card to pay the tax bill since the bill can be discharged anyway.
Instead of jumping into a bankruptcy filing, be sure your situation requires it. It is possible to take advantage of other options, like consumer credit counseling. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
Never lie about anything in your bankruptcy petition. You can lose the right to file bankruptcy now or in the future if you try to withhold information about your assets and income. So it is critical that you disclose everything honestly to to avoid that and any other penalties the trustee might impose if he discovered your attempt to hide information from the court.
No good will come of trying to conceal your assets or your liabilities in the bankruptcy process; you want to be scrupulously honest when you declare bankruptcy. Penalties may include fines, imprisonment or denial of the filing. Be completely honest in your paperwork to avoid a situation that may end in severe punishment.
Don’t pay to for an initial consultation with a bankruptcy attorney, and thoroughly question each candidate. Most attorneys offer a free consultation which you should take advantage of. Meet with a few before finalizing your plans. The lawyer who properly answers your questions is the one you should hire. There is no need to offer an immediate hire, so take your time. So you have sufficient time to speak with a number of lawyers.
Before filing a bankruptcy claim, make sure that your home is well protected. You don’t have to lose your home just because you are filing for bankruptcy. It is entirely possible that you will be able to keep your home. This is dependent upon the your home’s value and whether or not you have taken a second mortgage. You should also examine the possibility of taking a homestead exemption. This could apply if your income falls below the financial threshold.
Consider if Chapter 13 bankruptcy is an option. Chapter 13 bankruptcy is a good choice for people whose unsecured debts amount to lower than $250,000 and who receive a regular income. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. This plan usually lasts from 3 to 5 years, after which, you will be discharged from all unsecured debt. 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.
Before you file for bankruptcy, make sure you understand your rights. Do not rely on your debtors information about whether or not certain loans can be included in your bankruptcy. There are few debts that can’t be discharged. If you are unsure about specific types of debt, check the bankruptcy laws in your state or consult an attorney.
When filing for personal bankruptcy, always supply all of your financial information. If you do not complete your financial profile your case could be delayed or dismissed. You might think something is insignificant, but you should add it anyway. That may include secondary jobs, any cars or trucks you want to be considered assets and any current loans.
This article should have enabled you to feel a little more confident about your personal bankruptcy. Bankruptcy is a serious matter, but it can be managed. Take the information that has been provided here to you and you can turn this situation around for the positive.