Repossessions, late fees and legal action due to financial hardships can be difficult to bear. Consider your finances and put an end to creditor calls, by petitioning for personal bankruptcy. This article will provide you with information to help you through this rough time.
Lots of people have to claim bankruptcy when their bills are larger than their income. If you find yourself going through this, you should know all about the laws that are in your state. Bankruptcy laws vary from state to state so it is important to do your research. Your home is safe in some states, but in others it’s not. You should be aware of local bankruptcy laws before filing.
You can find a wealth of information concerning personal bankruptcy by searching for websites which offer information about it. The U.S. Department of Justice and American Bankruptcy Institute are both sites that provide free advice. By having more knowledge, you can make the right decision, as well as be sure you are ensuring that your personal bankruptcy case goes smoothly.
You should avoid paying your taxes with credit cards and then immediately file for bankruptcy. Most of the time, you cannot discharge this debt. As a result, you will owe the IRS a lot of money. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. So, there is no reason to use your credit card if it will be discharged in the bankruptcy.
Consider all options before deciding to file for personal bankruptcy. You can find services like counseling for credit that consumers can use. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
One of the most important things to remember when filing for bankruptcy is to be honest and truthful every step of the way. Don’t hide income or assets from your lawyer or the bankruptcy trustee or you may find yourself in legal trouble.
Credit Cards
After a bankruptcy, you may not be able to receive any credit cards. If this happens to you, think about applying for a couple of secured credit cards. That will show lenders that you are committed to rebuilding your credit. After a while, you may be able to get unsecured credit again.
When choosing a bankruptcy lawyer, your best option is to find someone who is recommended by someone you know versus someone who you find online or in the phone book. There are many companies who take advantage of financial desperation; that is why it is important that you get someone that is trustworthy.
Do some research to find out which assets you could lose by filing for personal bankruptcy. The Bankruptcy Code has lists of various asset types that are exempt during the process. It is vital that you completely understand which assets are protected and which assets can be seized prior to filing bankruptcy. You wouldn’t want to unexpectedly lose any possessions you treasure.
Speak to a bankruptcy attorney about what new laws may be going into effect before your bankruptcy filing. Laws are ever-evolving. You must stay current with bankruptcy laws if you want to be successful in your challenge. If you are not sure about the current laws all you have to do is look into what laws have been passed.
Chapter 7
Be certain that you can differentiate between Chapter 7 and Chapter 13 bankruptcy. If Chapter 7 is what you file, your debts will get eliminated entirely. Any ties you have concerning creditors will definitely be dissolved. 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. To make the wisest choice, you will need to understand the consequences of each of these two options.
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. If you currently have some income and don’t have more than $250k in debt, you can declare bankruptcy. This will allow you to keep your personal property and real estate and repay your debts via a debt consolidation plan. Expect to make payments for up to 5 years before your unsecured debts are discharged. 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.
Filing bankruptcy should only be considered after the other options have been exhausted. Be careful, because many services offering debt consolidation are scams, and can leave you deeper in debt than you were already. The tips you have found here can help you to make the choices that are right for you, and help you steer clear of debt in the future.
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