Good Advice On Why You Should Avoid Bankruptcy
Posted at by PConran on category BankruptcyIf you are facing the possibility of bankruptcy and are looking for information to help you in your decision, you’ve come to the right place. One great advantage of the Internet is that we can always find the information we need to deal with even the most complex situations, such as personal bankruptcy. Read on to learn how to avoid bankruptcy.
You should check with the personal bankruptcy resources available online to educate yourself thoroughly before you begin the process. The United States DOJ, the NACBA, and the ABI all have useful information. The greater your body of knowledge, the better prepared you will be to make the decision of whether or not to file and to make certain that if you do file, the process is a smooth one.
Do not even think about paying your taxes with credit and petitioning for bankruptcy right after. In most states, this is not dischargeable debt. Therefore, you will end up owing the IRS a lot of money. In most cases, you can use the adage that “a dischargeable tax is a dischargeable debt.” Therefore, you should not pull your credit card out for purchases if it is just going to be discharged during the bankruptcy.
No matter what, don’t give up! Once bankruptcy has been filed, you may be able to regain possession of items such as electronic goods or cars that were taken away from you. If you have any property in repossession that was taken less than three months before filing for bankruptcy, then there are good odds that you can get your property back. Speak with your attorney about filing the correct petition to get your property back.
Be certain to grasp the distinction between Chapter 7 and Chapter 13 bankruptcy cases. Under Chapter 7 type bankruptcy, all debts are forgiven. All the things that tie you to creditors will go away. In a Chapter 13, though, you’ll be put on a payment plan for up to 60 months before being free of your debts. Look into both types of bankruptcy before deciding which one would suit your particular needs.
It is wise to meet with several lawyers before making a final decision, take advantage of the free consultations to find one that is a good fit for you. By law, paralegals and assistants can not give legal advice, so be sure that you are meeting with an actual attorney. It will be important to work with a bankruptcy lawyer that you feel comfortable with; a little comparison shopping will help you find the right one.
Take steps to ensure your home is protected. Just because you’re going bankrupt doesn’t mean that you also have to be homeless! You could keep your home; it depends on your home’s value or if a second mortgage is on your home. 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.
Planning can make all the difference in the world. If aren’t in such dire circumstances that you must file for bankruptcy immediately, it might be a good idea to wait if there is a reasonable chance you can improve your financial situation. That said, this only makes sense if you are making progress in solving your financial problems. So get to it and devise a plan so that you do not have to file for bankruptcy.