It is not uncommon these days for people to be drowning in debt. Debt continues to mount while collection phone calls continue to rise. If you have been going through this for a while, you might want to consider filing for bankruptcy. The bankruptcy laws vary in each state, so educate yourself on the laws in your state.
Credit Cards
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. In most states, this is not dischargeable debt. Therefore, you will end up owing the IRS a lot of money. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. It is pointless to use credit cards if they can be discharged.
One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. You can lose the right to file bankruptcy now or in the future if you try to withhold information about your assets and income. So it is critical that you disclose everything honestly to to avoid that and any other penalties the trustee might impose if he discovered your attempt to hide information from the court.
After a bankruptcy, you may still see problems getting any kind of unsecured credit. Secured cards can be a great way to get started if this happens to you. They offer you the chance to demonstrate the seriousness with which you now take your financial obligations. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
Prior to putting in the bankruptcy paperwork, determine what assets are protected from seizure. The Bankruptcy Code provides a listing of the various asset types that are not included in the bankruptcy process. It is important that you read this list before filing for bankruptcy, so that can find out whether or not your most prized possessions will be seized. This will ensure that you do not have any surprises once you have filed bankruptcy.
If you are about to file for bankruptcy, then make sure you hire a lawyer. You might not understand all of the various aspects to filing for bankruptcy. A qualified bankruptcy attorney can guide you through the filing process.
You can take steps to hang onto your house. Filing for bankruptcy will not always result in losing your home. It depends what your home value is and if there is a second mortgage, as all this stuff comes into play when determining if you can keep the home. You can also investigate your state’s homestead exemption, an option that might enable you to keep your home if certain financial requirements are met.
Before you file for bankruptcy, make sure you understand your rights. There are bill collectors who will claim that you cannot add your debts to your bankruptcy case. Only a few kinds of debt, like student loans or child support, are ineligible for bankruptcy. If the debt collector tries to tell you that your debts, which do not fall into those categories, cannot be bankrupted, take a note of it, look up the debt type, and report them to your state’s attorney general office.
Make certain that you are fully aware of each and every bankruptcy law prior to even considering filing. For instance, you need to know not to shift assets into someone else’s name in the year leading up to your filing. Also, you must never incur significant new obligations must prior to filing for bankruptcy.
Bankruptcy Law
Gain an understanding of bankruptcy law before you file. Without knowing the exact rules, you could inadvertently run into serious issues that could ultimately lead to your bankruptcy failing. If you do not know bankruptcy law, your bankruptcy case could be dismissed. Before you begin bankruptcy proceedings, research as much as you can. Doing so will make the process a lot easier.
Do not take a large cash advance from credit cards prior to filing, knowing that bankruptcy erases all debts. If you were to do this you could be charged criminally with fraud, because the act is intended to rip off the company.
When thinking about filing for bankruptcy, it is best not to waste precious time. Your debt will only continue to mount as you waiver on the decision, difficult as it might be. By talking to a professional, as soon as possible, they can give you some advice on things you can do before it all gets too complicated.
Contrary to popular belief, you won’t necessarily lose your assets if you happen to file for bankruptcy. You get to keep your personal property. In other words, your clothes, your television, your computer, your furniture, your jewelry and other household items are safe. Depending on where you live and what you’re filing for, you might be able to keep you home and things like you car.
Personal Bankruptcy
If you get a new job right before filing for personal bankruptcy, keep going with your initial plans to file. It still may be ideal to file for bankruptcy. Your timing can make a tremendous difference when filing for personal bankruptcy. If you file prior to a change in your income, your ability to repay debts will be measured by your former earnings.
It is wise to reconsider filing for divorce if your financial situation is grim. A lot of people get divorced and immediately have to file for bankruptcy because they didn’t foresee the troubles that were ahead for them financially. A great way to avoid this is by not getting divorced.
Most attorneys make a free service available to deal with creditors who are constantly calling about your debts. This number can be given to creditors and collection agencies so that they can confirm that you are filing bankruptcy. Once this is done, they will cease and desist calling you.
As you now know, there is help out there for you if you want to file for bankruptcy. Bankruptcy can help you start over with and give you tools to become a more responsible consumer.
This is a limited-time offer. We are not able to guarantee availability if you wait!
