If you are faced with the threat of repossession of valuable assets, you may become terrified of the IRS. You can eliminate calls from debt collectors and get your finances back on track by filing for bankruptcy. This article will provide you with information to help you through this rough time.
Instead of jumping into a bankruptcy filing, be sure your situation requires it. You have other choices, including consumer credit counseling. Since your credit history will forever note the bankruptcy, you want to make sure that you have tried everything else before you take an action such as this, in order to minimize the effect it will have with regard to your credit history.
If you are going through a bankruptcy do not fall victim to guilt and pay off debts that you do not need to pay. Avoid ever touching retirement funds until you have no other choice. You may need to withdraw some funds from your savings account, but don’t take everything that is there as you will be bereft of any financial backup if you do.
If you are planning to file for bankruptcy, be sure to learn what types of assets you will be able to keep and which can be seized. There are some assets that cannot be seized through bankruptcy, and the law lists those assets. Make sure that you carefully look over this list prior to filing to discover if your valuable assets will be seized. Without reading the list, you may be shocked at which possessions can be taken from you.
Find a specialized lawyer if you are thinking about filing for bankruptcy. Bankruptcy is a complex process, and you probably don’t know all the information that is required to navigate it. A lawyer that specializes in bankruptcy can make sure you are following the correct procedures in your filing.
Before declaring bankruptcy, be sure you’ve weighed other options. For example, if your debt is small, try a type of consumer counseling program. You might also be able to negotiate lower payments yourself, but make sure that you get written records of any debt modifications to which you agree.
Don’t file for bankruptcy unless it’s absolutely necessary. Perhaps consolidating your existing debt can make it easier to manage. Bankruptcy is a stressful process. It will have a long-lasting effect of your future credit opportunities. Therefore, you need to be sure that you really have no other option than to file for bankruptcy.
Chapter 13 Bankruptcy
Consider if Chapter 13 bankruptcy is an option. If your source of income is regular and your unsecured debt is less than a quarter million, Chapter 13 bankruptcy is something you are able to file for. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. The window for Chapter 13 repayments is typically 3-5 years. At the end of this time, any unsecured debt is discharged. Remember that missing a payment to the plan will result in your case being dismissed.
If you are moving forward with a Chapter 7 bankruptcy, you need to learn how that can negatively affect anyone who shares loans with you. When filing Chapter 7, you are not legally responsible for the debts in your name. However, creditors will want to hold your co-signer responsible completely.
Don’t wait till it’s too late to file for bankruptcy. For some people, they tend to ignore their poor financial situation and just wishing it away, but that is only putting you in more danger. Personal debts can spiral out of control very quickly, and if you don’t take care of them, you may find yourself facing foreclosure or wage garnishment. As soon as you see your debts getting out of control, seek the counsel of a good bankruptcy attorney to see what your options are.
Be certain you are totally aware of the laws of bankruptcy before you file. For instance, somebody cannot transfer assets from a filer’s name up to a year after they file. It is also illegal for someone who files for bankruptcy to drastically increase their debts on credit cards immediately before filing.
Do not omit any information about your finances, assets or debts when filling out your bankruptcy paperwork. If you do not do so accurately, your petition could be dismissed, or at the very least delayed. It does not matter what you think of your financial situation, put the sum amount either way. This can include side jobs, any vehicles to be counted as assets, and any loans you may currently have.
Don’t drag your feet figuring out if bankruptcy is the right thing to do. It can be difficult to ask for help, but as you wait, you accrue more debt. The time to seek out professional advice on bankruptcy is as early as possible. Your financial situation will get complex very quickly, so wise counsel is more valuable the earlier you get it.
Even though bankruptcy is always a personal choice, do not file without checking out all other options. Also keep in mind that a lot of debt consolidation companies are scams that can make your debt worse. Use the tips you learned from this article to improve your financial situation and stay away from debt.
This is a limited-time offer. We are not able to guarantee availability if you wait!
