Discover All The Ins And Outs Of Personal Bankruptcy
Posted at by PConran on category BankruptcyThere are many valid reasons for filing bankruptcy. If you lose your job, your spouse or find yourself overwhelmed with bills, filing for bankruptcy might be the only option left. You may find the suggestions in this article very helpful if you are in such a situation.
Do not use a credit card to manage your tax issues and then try to file bankruptcy. In most states, you will still owe money to the IRS and have to take care of the interest of your credit cards. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. If you live in an area where tax can be discharged through bankruptcy, financing your tax bill is pretty pointless.
Any bankruptcy consultation should be free of charge. Almost all lawyers will give a free consultation, so meet with more than one before making a decision on whom to hire. The lawyer who properly answers your questions is the one you should hire. After your consultation, take your time to make your decision. So you have sufficient time to speak with a number of lawyers.
Do some research to find out more about Chapter 13 and Chapter 7. In Chapter 7 most of your outstanding accounts will essentially be erased. Any ties that you have with creditors will be dissolved. Bankruptcy under the rules of Chapter 13, on the other hand, require you to work out a payment arrangement to pay back the agreed upon amounts. It is important that you understand the differences between the different types of bankruptcy, so that you can decide which option is best for you.
Consider filing for Chapter 13 bankruptcy. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. This lets you keep any real estate and personal property while you repay all your debts through a consolidation program. That plan lasts approximately three to five years, and then you are discharged from unsecured debt. Remember, though, that if you fail to make even one payment, the case will be thrown out and you’ll be right back where you started.
If you have fears that you will lose your car, ask your lawyer about the possibility of lowering your car payments. Chapter 7 bankruptcy is one of the most common and effective. If you meet the criteria specific to your state, it may be a good option to consider.
Prior to filing for bankruptcy, tell yourself that you cannot use the word “shame”. Many people get feeling of guilt when going through bankruptcy. These are useless emotions, however, and can be harmful to your mental state. Keep a positive state of mind to deal with your tough financial situation.
Bankruptcy laws are very exact and very important, so ensure that you’re well aware of all current laws before you file a petition. For instance, for 365 days before filing, no one is able to receive assets from the filer. Also, a person cannot legally increase their debt amount on credit cards prior to filing.
Every single piece of financial information you have needs to be studied and properly listed when filing a bankruptcy claim. If the court thinks you are attempting to conceal information, your petition could be denied. You might think something is insignificant, but you should add it anyway. This includes any jobs you have on the side, any vehicles you have and any outstanding loans.
If you have attempted every option open to you to bring your finances under control, but have been unsuccessful, bankruptcy may be the final option. You should not let it ruin your life though if you find yourself facing this decision. This article shares what you need to know about fixing your financial predicament.