The Good And The Bad Aspects Of Filing For Personal Bankruptcy
Posted at by PConran on category BankruptcyAlthough unhappy circumstances in your life might have led you to file for bankruptcy, your life post-bankruptcy can be much better. The main point is to start over financially. Read on for how to make the bankruptcy process be a rebirth instead of financial Armageddon.
Don’t use a credit card to pay off your taxes before filing for bankruptcy. In most states, this debt won’t be discharged, and you could end up owing the IRS a whole lot more. Generally speaking, debt incurred to pay taxes and the tax bills themselves are treated the same in a bankruptcy. Therefore, you should not pull your credit card out for purchases if it is just going to be discharged during the bankruptcy.
Always be honest and forthright when it comes to your bankruptcy petition. 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.
Before you file for bankruptcy, find out which of your assets will be exempt from seizure. Bankruptcy exemptions are properties may not be seized during bankruptcy. Be well prepared for bankruptcy by reviewing this list. It will tell you whether are not the things you value most are subject to seizure. If you don’t read this list, there is a chance that you might get nasty surprises when they take your things away.
Keep at it! Certain property cannot be repossessed while you are in the process of filing for bankruptcy so be sure to learn about the laws in your state. If the property you own has been repossessed under 90 days before the bankruptcy filing, you may still be able to get it back. Talk to your lawyer to find out how to go about properly filing a petition.
Before filing for bankruptcy, determine whether Chapter 13 or Chapter 7 is appropriate for your financial situation. Every one of your debts will be gone if you decide to go with Chapter 7. Any debts that you owe to creditors will be wiped clean. Filing Chapter 13 differs by requiring you to agree to a 60 month plan to repay your debts before they are totally eliminated. You must know about the different bankruptcy types, and how each can affect you.
It’s a good idea to meet with a number of bankruptcy lawyers before settling upon one. The majority of them offer free initial consultations. Make sure you meet with a licensed attorney rather than a paralegal or assistant, because it is illegal for these people to give legal advice. Searching for the best lawyer will help you located the comfort you need during this time.
Make sure your home is safe. You do not have to lose your home in the process of a 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. There are other options such as a homestead exemption which offers you a chance to remain in your home, depending on whether or not you meed certain financial conditions.
The road to personal bankruptcy is a sad and difficult one. Nonetheless, filing for personal bankruptcy can be a watershed moment. Bankruptcy is not the end; by applying some or all of the tips in this article, you will make the process much smoother and your financial recovery that much faster.