There are quite a number of people who have been affected by the economy, and now find themselves buried in debt. Their bills pile up higher while debt collectors and creditors keep their phones ringing constantly. You may have found yourself in the same situation, and you should know that bankruptcy could be a good option for you. Continue reading to learn more about whether you need to file for bankruptcy or not.
Filing for bankruptcy is something many people are forced to do when there debts become too much of a burden, and they can no longer afford to pay them. When you are faced with this issue, begin to familiarize yourself with your state’s laws. Every state is different when it comes to dealing with bankruptcy. For instance, in some states, you can’t lose your home to bankruptcy, while in other states, you can. Be aware of bankruptcy laws before filing your claim.
Don’t use credit cards to pay your taxes if you’re going to file bankruptcy. Most states do not look at this debt as chargeable, and you could end up owing money to the IRS. If the tax has the ability to be eliminated, the debt can be too. This means using a credit card is not necessary, when it will just be discharged.
Be sure to remind your lawyer if it seems that some details of your situation are forgotten. Do not assume that if you’ve already told him or her something important once, that they will remember it later without a reminder. Speak up. This is your life, and your future depends on it.
You may end up losing more than you bargained for when you file a bankruptcy claim, so be sure that you know just which assets may be taken before filing. The Bankruptcy Code has lists of various asset types that are exempt during the process. Make sure to review the list before filing a claim so you know if your valuables will be subject to seizure. It is important to know what types of possessions may be taken away before they actually are seized.
Don’t give up. If you file for bankruptcy, you might be able to reclaim certain property that has been repossessed, such as your car, electronics or jewelry. If it has been fewer than 90 days since you filed for bankruptcy, it is possible for you to get repossessed property back. Talk with an attorney who can guide you through the process of filing a petition.
If you’re unsure, then you need to learn what a Chapter 7 bankruptcy can do for you, as opposed to what Chapter 13 does. Take the time to find out about each one online, and look at the advantages and disadvantages of each. Do not hesitate to have your lawyer explain any details that seem difficult to grasp. This will help ensure you make the right choice when filing.
Chapter 13 Bankruptcy
Consider filing a Chapter 13 bankruptcy. In most states, Chapter 13 bankruptcy law stipulates that you must have under $250,000 of unsecured debt and a steady income. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. This lasts for three to five years and after this, your unsecured debt will be discharged. However, if you are unable to properly commit to the plan you agree to, your case can be dismissed.
Act at the right time. The timing of your filing could be important to its success. Sometimes you should file immediately; however, there are times when it is better to delay until the worst has passed. Discuss the strategic timing of your bankruptcy with your attorney.
There is a great amount of emotional and mental stress associated with filing for bankruptcy. One way to help reduce is this stress is to hire a reliable attorney. Get recommendations and look into other qualifications rather than just choosing based on cost alone. While the person you select does not have to cost the most, they should be competent and reliable. Look to the bureau for better business, consultation, as well as others who have formerly experienced bankruptcy for more information about lawyers. Consider attending a court hearing so you can witness how the lawyer operates.
After reading this article, you now know that there are many options available and possibilities to consider when filing for bankruptcy. Don’t let the situation overwhelm you. Look at bankruptcy as a way to begin again.
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