Tips For Filing Chapter 7 And Chapter 13 Bankruptcy
Posted at by PConran on category BankruptcyThe decision to file bankruptcy is difficult, but sometimes unavoidable. It is always best to go forward, armed with the best information and assistance you can find. You need to know what you are up against. Read the below article for excellent advice from people who have personally went through bankruptcy.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. 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. Remember that if you can discharge the tax you can discharge the debt. So, in short, do not use your credit cards to pay off debts right before you file for bankruptcy.
If you are faced with the choice of filing for bankruptcy or using your emergency fund or retirement accounts to pay creditors, opt to file for bankruptcy. You should never touch your retirement accounts, unless you have absolutely no choice. You may need to use some of your savings; however, you should not use all of your savings. Remember that you must safeguard your future financial security.
Honesty is of utmost importance during your filing, even though it may be tempting to “pad” your answers a little. It is vital that you disclose all information about your assets and income so there are no delays or penalties, such as a court barring you from filing again later in the future.
Rather than checking online, try to get recommendations from friends or family about a suitable bankruptcy attorney. There are many companies who take advantage of financial desperation; that is why it is important that you get someone that is trustworthy.
Don’t hide assets or liabilities when filing for bankruptcy. The person you choose to file with needs to know both the good and bad aspects of your finances. Don’t hold anything back and formulate a smart strategy to deal with the reality you are facing.
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 that you meet with an actual lawyer and not an assistant or paralegal, as these people are not allowed to provide legal advice. Searching for the best lawyer will help you located the comfort you need during this time.
You can take steps to hang onto your house. Just because you’re going bankrupt doesn’t mean that you also have to be homeless! It may be possible to keep your home if the value has depreciated, or there is a second mortgage. Additionally, some states have homestead exemptions that might let you keep your home, provided you meet certain requirements.
Consider Chapter 13 bankruptcy, if you chose to file. If you owe an amount under $250,000 and have a consistent income source, Chapter 13 may be right for you. Not only can you repay your debts through consolidation, personal property can be kept, as well as real estate. Such plans generally take between 3 and 5 years to complete, at which point. a discharge will be granted. Missing a payment under these plans can result in total dismissal by the courts.
Pick the right time to file. The timing of your filing could be important to its success. While there are times that it is ideal to file soon, there are other times in which you should wait. Find out when the correct time is for you to file for bankruptcy from a bankruptcy legal professional.
Review bankruptcy rules before you file your petition. There are several pitfalls with personal bankruptcy that can make your case harder to handle. Some mistakes in your papers can cause your case to be dismissed. Make sure you have a decent understanding of the bankruptcy process before you proceed. Doing this will make the process easier.
No one is happy to be bankrupt; sometimes it is the only option. After reading these tips, you can go through the process with some helpful tips. Gleaning insight from others who already walked the same path can minimize complications and help to reduce your own stress at a difficult time.