Do You Need To File Personal Bankrupcy? Use These Great Tips!
Posted at by PConran on category BankruptcyThere are quite a number of people who have been affected by the economy, and now find themselves buried in debt. Their bills pile up higher while debt collectors and creditors keep their phones ringing constantly. If you are experiencing overwhelming stress due to your financial situation, you might want to think about filing personal bankruptcy. Keep reading to see if this is a viable solution for you.
Generally bankruptcy is filed when a person is facing insurmountable debt. If this is your case, you should do some research about bankruptcy laws in your state. There are greatly varying laws concerning bankruptcy, so it is important to make sure you are getting the correct information. For instance, in some states you can keep your home and car, while other states prohibit this. Become acquainted with local bankruptcy laws before filing.
Be certain you understand all you can about bankruptcy by researching reputable sites that offer good information. The United States D.O.J., the A.B.I and the N.A.C.B.A. are all useful organizations willing to provide educational material. You will find that the process of filing for personal bankruptcy is easier and less of a hassle with the more information on the subject you gather ahead of time.
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. Should the tax be dischargeable, the debt is often dischargeable as well. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.
When it gets time to think about bankruptcy, avoid using your retirement or savings to pay off the creditors or even make attempts to settle the debt. Retirement accounts should never be accessed unless all other options have been exhausted. 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.
Getting unsecured credit post-bankruptcy will likely be difficult. If so, apply for a secured credit card. By doing this, you will be letting people know that you want to fix your credit score. Then, in time, it may be possible for you to obtain an unsecured credit card.
Before you decide to file bankruptcy proceedings, determine which assets will be safe. Bankruptcy exemptions are properties may not be seized during bankruptcy. It is vital that you know the things on this list prior to filing for bankruptcy, in order to determine which of your possessions will be taken away. While it might not be possible to protect a particularly beloved possession, at least you will know in advance whether or not you risk losing it.
It is important to understand your rights when filing bankruptcy. When you file for bankruptcy you may be allowed to recover property like your car, electronics or jewelry that might have been repossessed. Any property repossessed within 90 days before filing bankruptcy, may be able to be returned to you. Talk to your lawyer to find out how to go about properly filing a petition.
Do some research to find out more about Chapter 13 and Chapter 7. Chapter 7 eliminates all debts. Your ties with all creditors will get dissolved. With a chapter 13 bankruptcy, a 60 month period of time will be established in which you will repay the as much of your debt as possible. Following the 60 month period of time, the remainder of your debt will be excused. It is worth while to take your time to research both types of bankruptcy to decide which option works best for you, and your financial situation.
If you have reached a point where you are forced to file bankruptcy, you can now understand that many resources are available to help you. If you approach it from just the right way and with a crystal clear, aware mind, you will experience the relief you wanted and will help you to get up again.