Tips For Using Bankruptcy To Your Advantage
Posted at by PConran on category BankruptcyIf your debts have skyrocketed out of control and you are considering filing for personal bankruptcy, worry no more. Because of the Internet, it is very simple to find information about preventing situations like bankruptcy. The advice in this article may help you avoid bankruptcy.
Do not even think about paying your taxes with credit and petitioning for bankruptcy right after. Most states do not look at this debt as chargeable, and you could end up owing money to the IRS. In most cases, you can use the adage that “a dischargeable tax is a dischargeable debt.” It is pointless to use credit cards if they can be discharged.
Always be honest and forthright when it comes to your bankruptcy petition. You might feel tempted to not declare certain assets in your bankruptcy in order to protect them from forfeiture, but if you’re found out, the process could take longer, or worse, you might be banned from filing for bankruptcy completely.
Be sure to remind your lawyer if it seems that some details of your situation are forgotten. Never assume that they can remember all details without reminders. It’s your financial future that is in his hands; don’t hesitate to speak up.
You may end up losing more than you bargained for when you file a bankruptcy claim, so be sure that you know just which assets may be taken before filing. The federal statutes covering bankruptcy can tell you exactly which assets are exempt from forfeiture to pay off creditors. You can determine exactly which of your possessions are at risk by consulting this list before you file. If you fail to do so, things could get ugly.
Don’t file for bankruptcy until your represented by an attorney. There are many different aspects to filing bankruptcy, and you may not understand everything there is to know. A personal bankruptcy lawyer will be able to help you and ensure you are doing things the proper way.
Make sure that you understand the difference between Chapter 13 bankruptcy and Chapter 7 bankruptcy. Should you choose Chapter 7, your total debt load will be erased. Your ties with all creditors will get dissolved. If you file for Chapter 13 bankruptcy, however, you will enter into a 60 month repayment plan before your debts are completely dissolved. It is vital that you know the differences between these types of bankruptcies, in order to find the option that’s best for you.
Meet with a few attorneys who offer free consultations before hiring one. 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. By shopping lawyers, you will be more likely to find one that makes you comfortable about the process.
It is important to look at your financial situation from all possible angles before you decide to file for bankruptcy. Consult with a bankruptcy attorney to see if an interest rate reduction or debt repayment plan is an alternative to filing for bankruptcy. If a foreclosure is on your horizon, look into loan modification plans. Lenders can assist you in a lot of ways, by cutting interest rate charges and cutting off late fee charges. They can also lengthen the loan. Because of the fact that creditors would like to see their money they are likely to offer repayment plans versus not getting paid at all if you file for bankruptcy.
Talk to an attorney about reducing your car payments so that you can keep your vehicle. Chapter 7 usually can help payments be lowered. You must have bought the car 910 or more days before you filed, the loan must have a high interest rate, and you have to have a secure and steady working history in order for that to work.
Proper planning can put you in the right place. If you can give yourself more time, do it. Every little bit helps when you are working to get out from under the threat of bankruptcy. Plan your future out now.