Information You Must Know Before Filing For Bankruptcy
Posted at by PConran on category BankruptcyYou do not have to keep worrying if your debts are making you think about filing for bankruptcy. With the Internet, you can find out ways to avoid bankruptcy. Read through these tips to avoid going through bankruptcy.
Do not pay your taxes with credit cards that will be canceled when you file for bankruptcy. In a lot of places, the debt cannot be discharged, and you may still owe money to the IRS. Generally speaking if you can discharge the tax, you can discharge the debt. This means using a credit card is not necessary, when it will just be discharged.
It is important to remind your lawyer of any details that may be important to your case. Many times a lawyer may forget a key detail; therefore, it is important to remind your lawyer of any key information. Ultimately, this is your bankruptcy and your financial future, so never hesitate to advocate on your behalf.
Try to get a bankruptcy lawyer that your friends recommend, as opposed to someone that you find from the Internet or yellow pages. Don’t allow yourself to be taken advantage of by predatory lawyers just because you are filing for bankruptcy. It is important to find someone trustworthy.
Do some research to find out which assets you could lose by filing for personal bankruptcy. The Bankruptcy Code has lists of various asset types that are exempt during the process. It is vital that you know the things on this list prior to filing for bankruptcy, in order to determine which of your possessions will be taken away. Failure to do this could cause some ugly surprises down the road when you discover that your valuables must be seized.
Be completely honest whenever you file for personal bankruptcy. Hiding any asset or liability is a risk that will bite you in the end. Whomever you plan to use should know a lot about the finances that you have, both the good and the bad. Divulge all of your information so that you and your lawyer can devise the best strategy for dealing with your situation.
Ensure that you bankruptcy is your best choice. Many times a consolidation loan will ease your financial struggles. Going through the bankruptcy process is a long drawn process which at times can be incredibly stressful. Your credit will be impacted for many years. Therefore, you must make sure that there is no other option that you could take before you file for bankruptcy.
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. Chapter 13 bankruptcy permits you to remain the owner of your properties, while allowing you to repay your debt using a debt consolidation loan. Typically, this goes on for roughly three to five years, and once this time has expired, your unsecured debt is eliminated. Missing a payment under these plans can result in total dismissal by the courts.
If you’re willing to learn and exercise patience and understanding in the process, filing bankruptcy doesn’t have to be a difficult process. If you can buy yourself, time then do it; the more the better. The most important thing here is that you understand that knowledge is power in filing a claim. At this point, you can begin making plans and preparing yourself for your future.