Useful Information To Know When Considering Personal Bankruptcy Options
Posted at by PConran on category BankruptcyAre you financially insolvent with bankruptcy looking like the only way out? There is no need to be stressed out. Plenty of people have gone through this and rebuilt their lives. Many individuals have turned to bankruptcy as a means of finding relief from financial hardship. This article will give you the information you need to make your bankruptcy go smoothly.
Many people find that they must file for bankruptcy protection because they have more debt than they can afford to repay. If this is your case, you should do some research about bankruptcy laws in your state. Each state has their own bankruptcy laws. Some states may protect you home, and some may not. Make sure you know the laws where you live before you file.
Do not try to get clever by paying your taxes via credit card before you declare bankruptcy in an effort to dodge your tax burden. 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. Therefore, you should not pull your credit card out for purchases if it is just going to be discharged during the bankruptcy.
Investigate any new laws before deciding to file a bankruptcy. Bankruptcy law has changed substantially in recent years, and therefore you must understand how such changes may affect your situation. To stay up-to-date on these laws, check out your state’s government website.
Before declaring bankruptcy, be sure you’ve weighed other options. For example, if your debt is small, try a type of consumer counseling program. You can also talk to creditors and ask them to lower payments, but be sure to get any debt agreements in writing.
Learn the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Take the time to find out about each one online, and look at the advantages and disadvantages of each. If anything you see is unclear or doesn’t make sense, go over it again with your attorney before making the final filing decision.
If you are considering filing for personal bankruptcy, be certain that this is really the right course of action for you. Perhaps consolidating your existing debt can make it easier to manage. Bankruptcy cases are long, anxiety-filled experiences. Having a bankruptcy on your record will hinder your ability to get credit in the future. Personal bankruptcy should be undertaken as a last resort when no other workable options are available to you.
Thing about filing a Chapter 13 bankruptcy. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. Filing for this type of debt will ensure that you can hold onto your real estate and personal property, and will let you develop a consolidation plan to pay off your debts. The window for Chapter 13 repayments is typically 3-5 years. At the end of this time, any unsecured debt is 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.
As you know by now, many other people have had to file for bankruptcy before you. But since reading this article, you now have information that others don’t have. Make an effort to use the information shared here with you to simplify the bankruptcy process for yourself.