Most people do not think they will ever need to consider filing for bankruptcy. Sometimes things in life happen, but you have to be prepared for what comes your way. If you find yourself it this situation you can find help with the information contained in this article.
One of the best ways to learn more about the bankruptcy process is to hit the Internet and look up reputable bankruptcy websites. The U.S. Department of Justice, American Bankruptcy Institute, along with many other websites can provide you with the information you need. 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.
Credit Card
Do not attempt to pay your taxes with your credit cards and subsequently file for bankruptcy. Credit card debt is handled charge by charge during bankruptcy, and in most states, tax debt cannot be discharged through bankruptcy. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. Thus, it doesn’t make sense to use a credit card when it is going to be discharged when you file for bankruptcy.
Don’t fear reminding your attorney of any specific details of your case. Don’t assume that he will remember something you told him weeks ago. Ultimately, this is your bankruptcy and your financial future, so never hesitate to advocate on your behalf.
Secured Card
Once you file for bankruptcy, you will have a hard time getting loans or credits. This being the case, look at secured card options. When you do this, it shows your determination to fix your credit history. If you do well with a secured card and make strides to repair your credit, you will ultimately be able to receive an unsecured card.
Prior to filing for bankruptcy, research which assets will remain exempt from creditors. The federal statutes covering bankruptcy can tell you exactly which assets are exempt from forfeiture to pay off creditors. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. If you are not aware of the rules, you could be setting yourself up for a lot of stress when your most important possessions are taken in the bankruptcy.
Be honest when filing for bankruptcy. Don’t hide liabilities or assets, as they’ll come back and haunt you. Your attorney and trustee should be privy to all information about your finances. Don’t hold back information and create a strategy so you can deal with what’s really happening.
Bankruptcy is tricky and hiring a good lawyer will be a must. It is difficult to make all of the necessary decisions yourself, and expert guidance will be helpful. Talk to a bankruptcy lawyer, they can help clarify anything that you might have confusion with.
Before you decide to declare bankruptcy, make sure that a less-drastic solution isn’t more appropriate. For instance, a consumer credit counseling program may be a better bet if your debts are relatively small. Sometimes you can negotiate a reduced payment, though you must strive to get it all in writing.
Chapter 7
You need to educate yourself on the differences between Chapter 7 and Chapter 13. In Chapter 7 bankruptcy, your debts are all eliminated. You will be removed from any contracts you have with your creditors. Chapter 13 bankruptcy though will make you work out a payment plan that takes 60 months to work with until the debts go away. It is worth while to take your time to research both types of bankruptcy to decide which option works best for you, and your financial situation.
You can take steps to hang onto your house. Filing for bankruptcy does not mean you have to lose your home. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. If you meet certain criteria, you may be able to retain ownership of your home even after filing for bankruptcy.
If you are facing bankruptcy, it is important to get expert advice to address your situation and take the necessary actions to resolve it. The process is anything but simple, and information will become your best friend during this difficult time. This article has given you a lot of information that will help you succeed during the filing process and beyond.
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