Navigate Financial Difficulties With These Personal Bankruptcy Tips
Posted at by PConran on category BankruptcyIt isn’t always easy to file for personal bankruptcy. There are different chapters of bankruptcy, and you may qualify for one or more. Learn as much as you can about the topic before you make any decisions regarding filing. In the following paragraphs, you’ll find some tips that will get you off to a good start.
It is important that you increase your knowledge on personal bankruptcy by reviewing websites that provide reliable information. The United States The Department of Justice is just one resource of information available to you. You need to spend some time gathering valuable information so you can file your bankruptcy with confidence.
Do not consider paying off tax debt with credit cards and filing for bankruptcy afterward. It won’t work. In many areas of the country, this debt will not be dischargeable, and you could be left owing a significant amount to the IRS. Generally speaking if you can discharge the tax, you can discharge the debt. This means using a credit card is not necessary, when it will just be discharged.
When filing for bankruptcy it is crucial that you are candid and not concealing any liabilities or assets, as it will only show up in the future. 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.
Keep working to improve your situation. Filing for personal bankruptcy may possibly enable you to reclaim your personal property that have been repossessed, like your car, electronics and jewelry items. If the items were repossessed less than three months prior to your filing date, you may be able to recover them. A qualified bankruptcy attorney can walk you through the petition process.
Before making your decision to file for bankruptcy, double-check to see if other, less drastic options could make sense. For example, if your debt is small, try a type of consumer counseling program. Also, you could try to get your payments lowered on your own. If you decide to do this, get a copy of anything you agree to.
You can take steps to hang onto your house. Filing for bankruptcy does not mean you have to lose your home. Check your home’s current value to see if it has gained equity and get your first and second mortgage papers together. You should also examine the possibility of taking a homestead exemption. This could apply if your income falls below the financial threshold.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Be sure you go on the Internet and do your research to see what’s best for you. Learning about bankruptcy is not simple, so call a bankruptcy attorney to make an appointment to ask questions.
Research Chapter 13 bankruptcy, and see if it might be right for you. In most states, Chapter 13 bankruptcy law stipulates that you must have under $250,000 of unsecured debt and a steady income. The benefit of this plan is that you retain personal belongings and private real estate and your debts are repaid by an organized payment plan. The length of the plan is generally up to five years, and when this is over, you will be free of unsecured debt. Bear in mind that if you miss a single payment that is due under your plan, the entire case will be dismissed by the Court.
Once the initial filing period is over, ensure that you are getting out and enjoying life. A lot of debtors usually get stressed when they file. If you let the stress get to you you may get depressed if you’re not doing the proper things to fight it. Once your petition is in the hands of the judge, all you can do is wait.
Now you know that filing for bankruptcy is something to be considered before going through with it. Ultimately, if bankruptcy seems like the best choice for you and your finances, you may want to seek out a bankruptcy attorney. They’ll be able to guide you through the stages of bankruptcy, ensuring your fresh start is a great one.