Even people who have had assets, such as a car, seized for back tax debt can file for bankruptcy. There are times when bankruptcy is the last option left, even if it substantially damages your credit score. Continue reading this article to understand what you need to know about bankruptcy and the likely end result of going through one.
Be sure everything is clear to you about personal bankruptcy via looking at websites on the subject. The United States Department of Justice and American Bankruptcy Institute are two such places to look. As with everything in life, the more you know about filing a claim, the better off you’ll be. You can properly prepare when you know what you’re preparing for.
Do not use a credit card to pay income taxes and then file for bankruptcy. In most states, you will still owe money to the IRS and have to take care of the interest of your credit cards. A common rule is that dischargeable tax means dischargeable debt. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.
One of the most important things to remember when filing for bankruptcy is to be honest and truthful every step of the way. As long as you are not hiding income or assets from the courts, you can ensure that there are no difficulties with your petition. This will save you from having your petition dismissed and your debts dropped from re-filing.
Secured Card
Once you file for bankruptcy, you will have a hard time getting loans or credits. If you are in this situation, applying for a secured card may be the answer. By doing this, you will be letting people know that you want to fix your credit score. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
Don’t try to hide anything if you are filing for bankruptcy, as this will hurt you in the long run. Whomever you plan to use should know a lot about the finances that you have, both the good and the bad. Bankruptcy can be a chance to simplify your finances, but any schemes you employ to conceal the truth can ruin that chance for you.
There is hope! Many times you can get repossess property back once bankruptcy has been filed. If the property you own has been repossessed under 90 days before the bankruptcy filing, you may still be able to get it back. Speak to a lawyer who will be able to help you file the necessary paperwork.
Ask for a free consultation with your bankruptcy attorney and ask questions about experience and education. Most lawyers will meet with you for free and give you helpful advice, so meet with several. Decide which lawyer you like best buy reviewing all of the lawyers’ answers to your questions. Choose the lawyer who addressed your issues the best. You don’t have to make your decision right after this consultation. This will give you extra time to interview several attorneys.
Find a specialized lawyer if you are thinking about filing for bankruptcy. It is unlikely that you will be able to comprehend all the various rules and regulations involved in bankruptcy law. An attorney will make sure that everything is being done correctly.
Bankruptcy Laws
Educate yourself about state bankruptcy laws and possible outcomes before filing your petition. Make sure to get the most up-to-date information concerning the bankruptcy laws in your state. Your state will have a website to check, or a number you can call, to learn the latest changes in the bankruptcy laws.
Be sure you know how Chapter 7 and Chapter 13 differ. Chapter 7 bankruptcy is intended to wipe out all outstanding debts. All creditor relationships will be severed. If however you enter Chapter 13, you will go into a five year repayment program prior to your debts dissolving entirely. It’s important to know what differences come with every type of bankruptcy. This will let you find out what’s best for you.
As you can see by now, you do have the option of filing bankruptcy. It is not something that should be done lightly, however, due to the negative effects it can have on one’s credit. Knowing how to best go through the bankruptcy process can reduce one’s troubles in the long run and make it easier to retain one’s possessions.
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