Tips For Filing Chapter 7 And Chapter 13 Bankruptcy
Posted at by PConran on category BankruptcyWhatever leads you to bankruptcy is a sad tale, but that need not mean that’s the only story to tell for the rest of your life. The main point is to start over financially. Keep reading for how you can make bankruptcy a second chance instead of financial doom.
Don’t use credit cards to pay your taxes if you’re going to file bankruptcy. In many parts of the country, you cannot get this debt discharged, and in the end you will be left owing the IRS a big sum of money. Should the tax be dischargeable, the debt is often dischargeable as well. Just because your credit card could be discharged in bankruptcy does not mean you should use it.
If you suspect that bankruptcy filing may be a reality, don’t try to discharge all your debt in advance by emptying your retirement or saving accounts. You should always keep money saved for worse times. You may have withdraw from your savings every now and then, but try to leave yourself some financial security for the future.
It is essential when going through bankruptcy that all of your income and assets are reported openly and honestly. To avoid problems, penalties and future re-filing bans, resist the urge to hide documentation or assets.
It is important to remind your lawyer of any details that may be important to your case. Inaccurate or incomplete information can lead to your petition being denied. Do not hesitate to speak up; this is your hearing and your future is on the line.
When looking for a lawyer to handle your bankruptcy claim, the best way to go is off of a personal recommendation instead of simply flipping through the phone book. There are many companies who take advantage of financial desperation; that is why it is important that you get someone that is trustworthy.
The two main kinds of bankruptcy are Chapter 7 and Chapter 13. Make sure you understand them so you know what is best for you. Under Chapter 7 type bankruptcy, all debts are forgiven. You will be removed from any contracts you have with your creditors. Chapter 13 bankruptcy though will make you work out a payment plan that takes 60 months to work with until the debts go away. You have to know what differs between all of the kind of bankruptcy, so you know which is one is ideal for you.
Your most important concern is to protect your home. You don’t have to lose your home just because you are filing for bankruptcy. Depending on certain conditions, you may very well end up being able to keep your home. If this is not the case, find out more about Homestead Exemptions you might qualify for if you meet certain financial requirements.
You can take out a mortgage or car loan while filing Chapter 13 bankruptcy. However, it will be a longer and more arduous task. You need to speak with your trustee so that you can be approved for a new loan. Draw a budget up and show how you can pay the newer loan payment. They may also want to know why you believe you need the loan.
Do not drag your feet when trying to figure out if bankruptcy is right for you. It is absolutely difficult to admit you require help. On the other hand, the longer you delay, the more debt you rack up. A qualified bankruptcy lawyer can give you advice about filing for bankruptcy and help you weigh other options.
As you can see, events that cause bankruptcy are a sad thing, indeed. It doesn’t have to be that way after bankruptcy. Bankruptcy may well represent the point where you turn your life around, and you can handle it better by making use of the suggestions this article has provided.