Maybe Bankruptcy Is Not The Right Option For You?
Posted at by PConran on category BankruptcyIt’s difficult for anyone to file bankruptcy, but sometimes it can be the only option. This decision may not be easy, but it is comparatively easier when you know what the process entails and how to navigate it. In the following article you can pick up some handy advice based on the experiences of other people who have had to deal with the bankruptcy process.
Do not even think about paying your taxes with credit and petitioning for bankruptcy right after. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. Generally speaking, debt incurred to pay taxes and the tax bills themselves are treated the same in a bankruptcy. It is pointless to use credit cards if they can be discharged.
It is essential that you are honest and forthright in the documentation you provide for your bankruptcy filings. To avoid problems, penalties and future re-filing bans, resist the urge to hide documentation or assets.
Don’t file for bankruptcy until you know what assets of yours can and can’t be seized. The Bankruptcy Code lists the kinds of assets which are exempted when it comes to the bankruptcy process. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. This will ensure that you do not have any surprises once you have filed bankruptcy.
Find a specialized lawyer if you are thinking about filing for bankruptcy. Personal bankruptcy is quite complex, and it is entirely possible that you will not be able to familiarize yourself with all the laws and processes. A bankruptcy attorney can help yo,u and make certain you can do things the right way.
Take advantage of the opportunity to consult with a number of bankruptcy lawyers who offer the first visit at no charge. By law, paralegals and assistants can not give legal advice, so be sure that you are meeting with an actual attorney. Taking the time to compare lawyers will ensure that you get a person that you can be yourself around.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Take the time to learn about them extensively, and then figure out which one will be best for your particular situation. If you’re really not sure how this all works after your research, meet with your lawyer and ask them prior to making a decision.
If you are going to be filing for bankruptcy, think about filing Chapter 13. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. Declaring bankruptcy can assist you in consolidating your debt so you can repay it more easily. The plan is usually for a term of three to five years, and a discharge will be granted at the end of that term. However, if you miss even one payment, the court will dismiss your entire case.
Spending time with the people you love is something you should do now. The whole process of filing for bankruptcy is hard. This long and stressful process can leave a person feeling guilt ridden, unworthy and ashamed. It is not uncommon for a person to feel the need to pull away from loved ones during the process. This isn’t true though because when you isolate yourself you will just start to feel worse and may become depressed. Make it a point to catch yourself if you feel yourself pulling away from others. Tell others that you would like to do some enjoyable things together while you go through bankruptcy process, then do it.
Bankruptcy should not be filed by anyone who makes more than their bills cost. Remember that the record of your personal bankruptcy filing will be discernible on the report of your credit for as many as 10 years. For this reason, bankruptcy filing should not be taken lightly.
Nobody enjoys filing for bankruptcy, but at times, you can’t avoid it. Now that you’ve come to the end of this piece, you have some ideas about how the process works. It will be a little easier to face bankruptcy after learning from people who have experienced it.