Nowadays, the economy is not in very good shape. In a weak economy, many people find themselves out of work and accumulating debt. Debts result in bankruptcy, which is never a good thing. The following article will help you, or your loved ones, gain control of your financial situation and hopefully prevent bankruptcy.
Personal Bankruptcy
You can find a wealth of information concerning personal bankruptcy by searching for websites which offer information about it. The United States DOJ, the NACBA, and the ABI all have useful information. 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.
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. Most of the time, you cannot discharge this debt. As a result, you will owe the IRS a lot of money. A common rule is that dischargeable tax means dischargeable debt. So, in short, do not use your credit cards to pay off debts right before you file for bankruptcy.
You may still have trouble receiving any unsecured credit after a bankruptcy. If you do, then try applying for a coupe of secured cards. Using a secured card not only helps to rebuild your credit, but it also keeps you from going more in debt with credit card bills. Then, in time, it may be possible for you to obtain an unsecured credit card.
If you aren’t totally honest about your assets when filing a bankruptcy petition, you could get into serious trouble. All of your financial information, be it positive or negative, must be disclosed to those in charge of filing your case. They need to know it all. Be completely honest in your paperwork to avoid a situation that may end in severe punishment.
Bankruptcy is tricky and hiring a good lawyer will be a must. There are a lot of things to do during bankruptcy and that may be hard for you to understand on your own. An attorney will make sure that everything is being done correctly.
Learn all the latest laws before you file bankruptcy. If you want to file for bankruptcy successfully, it’s important to review the latest applicable laws. They tend to change frequently. To find out about these changes, you can look at your state’s legislation website or contact their office.
Chapter 13
Be certain to grasp the distinction between Chapter 7 and Chapter 13 bankruptcy cases. Chapter 7 bankruptcy completely wipes out your debt. You will no longer be liable for any money that you owe to your creditors. Filing Chapter 13 differs by requiring you to agree to a 60 month plan to repay your debts before they are totally eliminated. To make the wisest choice, you will need to understand the consequences of each of these two options.
Don’t be tempted to race toward a bankruptcy without taking time to make sure it is the right thing for you to do. You may be able to get away with going through debt consolidation to help make the payments easier to deal with. Bankruptcy is a long process that can be stressful. You will have trouble getting credit down the line. Therefore, you need to be sure that you really have no other option than to file for bankruptcy.
Find out more about Chapter 13. With a regular income and unsecured debt below $250,000, Chapter 13 is probably best for you. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. The window for Chapter 13 repayments is typically 3-5 years. At the end of this time, any unsecured debt is discharged. 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.
Think about any co-debtors you have prior to filing for Chapter 7 bankruptcy. When you file under Chapter 7, you will no longer be legally responsible for any debts that were signed by yourself and a co-debtor. This does not dissolve any co-signers of the debt, and your creditors will continue to try and collect from them.
Avoid using bankruptcy as a last resort. Some people will just ignore their outstanding debts, hoping that someone or something will come and save them, but this never ends well. Debts can multiply very quickly, and can result in you losing money to wage garnishment, or even losing assets that are part of a secured loan. Once you realize that the debt you have is too much for you to handle, start thinking about talking to a bankruptcy attorney, they can guide you throughout the entire process.
Make a comprehensive list of all of your financial information before you file for bankruptcy. Forgetting to add these may cause your petition to be delayed, or even dismissed. You might think some asset or debt isn’t worth bothering with, but you should disclose it just to be on the safe side. That may include secondary jobs, any cars or trucks you want to be considered assets and any current loans.
Even though our economy is slowly improving, many people still do not have jobs or decent wages. If you don’t have steady income, you might still be able to avoid bankruptcy. Simply remain persistent and positive. Opportunities will eventually come your way. Keep these thoughts close and it will enable you to have a better chance of avoiding the need to file bankruptcy. Hopefully, everything works out for you!
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