Debt is one of the scariest things to live with. It is all too easy to let your debts get out of control and take over your life. When you find yourself in that position, it is not so simple to repair. This article can help you learn what to do when filing for bankruptcy when too much debt is hanging over your head.
You should avoid paying your taxes with credit cards and then immediately file for bankruptcy. In most states, this is not dischargeable debt. Therefore, you will end up owing the IRS a lot of money. Keep in mind that if the tax debt is eligible to be discharged, then the credit card debt is also dischargeable. So, there is no reason to use your credit card if it will be discharged in the bankruptcy.
Never shirk on the truth in your petition for bankruptcy. Do not hide any income or assets or go on a spending spree before filing for bankruptcy: the court will find out and will not have a positive opinion of you.
Prior to filing for bankruptcy, discover which assets cannot be seized. There are several assets which are exempt from bankruptcy; therefore, consult the Bankruptcy code. Be well prepared for bankruptcy by reviewing this list. It will tell you whether are not the things you value most are subject to seizure. You wouldn’t want to unexpectedly lose any possessions you treasure.
Do not give up. Certain property cannot be repossessed while you are in the process of filing for bankruptcy so be sure to learn about the laws in your state. If the property you own has been repossessed under 90 days before the bankruptcy filing, you may still be able to get it back. Get help from your lawyer to file a petition so you can get your items back.
You should not have to pay for an initial legal consultation, and such meetings are great opportunities to ask lots of questions. Most lawyers offer free consultations, so talk to a few before making your decision. Don’t choose a lawyer until your questions about bankruptcy are sufficiently answered. Take your time choosing the right attorney to assist in your bankruptcy. If you’re unsure, don’t hesitate to talk to multiple bankruptcy lawyers.
If bankruptcy is an option for you, secure the services of an attorney. The topic of bankruptcy is a complicated one and it is important that you know all about it. A bankruptcy attorney can advise you on how proceed properly.
Chapter 13
The two main kinds of bankruptcy are Chapter 7 and Chapter 13. Make sure you understand them so you know what is best for you. If Chapter 7 is what you file, your debts will get eliminated entirely. You will be removed from any contracts you have with your creditors. Chapter 13 is different, though. This type of bankruptcy entails an agreement to pay off your debts for five years prior to wiping the slate clean. When choosing the type of personal bankruptcy that is correct for you, it is very important that you know the differences.
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. Hiring a lawyer could help you become comfortable with the legal things that you will encounter.
Chapter 13
Consider filing using chapter 13 bankruptcy. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. That way, you can hold onto your personal assets and pay back a portion of your debts pursuant to an approved plan. This plan normally lasts from three to five years, in which you’ll be discharged from 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.
There are often times when you feel that you have very little control over what is happening to you. Yet, you can take better control of your future and plan out how you are going to secure your finances, for life. You can make a true difference in your day-to-day life by following the advice we have presented here.
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