Personal bankruptcy is always an option for those who have had possessions, such as vehicles, repossessed by the Internal Revenue Service. Bankruptcy will hurt your credit, this is true. However, it may be the only viable option available to you. Continue reading for more information about how and why to file for bankruptcy.
Local Bankruptcy
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 get into this situation yourself, your first step is to familiarize yourself with your local bankruptcy regulations. Bankruptcy laws vary from state to state so it is important to do your research. For example, whether or not you can keep your home, as well as what you need to do to keep it, is different for every state. You should be aware of local bankruptcy laws before filing.
Prior to filing for bankruptcy, be sure you have investigated all of your alternatives. You can also avail yourself of other options, such as 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.
It is essential when going through bankruptcy that all of your income and assets are reported openly and honestly. 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.
It is a good idea for you to hire a bankruptcy to handle your bankruptcy process. It is unlikely that you will be able to comprehend all the various rules and regulations involved in bankruptcy law. A specialized bankruptcy lawyer can ensure that you are handling your bankruptcy filing the right way.
It is wise to meet with several lawyers before making a final decision, take advantage of the free consultations to find one that is a good fit for you. Be certain to speak with an attorney, not their paralegal or law clerk, since they cannot give legal advice. By shopping lawyers, you will be more likely to find one that makes you comfortable about the process.
Chapter 13 Bankruptcy
Research Chapter 13 bankruptcy, and see if it might be right for you. With a consistent income source and less than $250k in debt, try filing for Chapter 13. Chapter 13 bankruptcy permits you to remain the owner of your properties, while allowing you to repay your debt using a debt consolidation loan. This lasts for three to five years and after this, your unsecured debt will be discharged. Stay mindful that should you for any reason miss even one plan payment, your whole case is going to get thrown out by the court system.
Don’t file bankruptcy if you can afford to pay your debts. Sure, bankruptcy can get rid of that debt, but it comes at the price of poor credit for 7-10 years.
Once the initial filing period is over, ensure that you are getting out and enjoying life. Many people feel a lot of stress while they work through the bankruptcy process. Depression and burn-out from pent of stress will do nothing to help your situation, so it is critical to let go a little. Bankruptcy is hard to go through, but you must remember that a less stressful, more enjoyable life is waiting on the other side of it.
Lower Payments
If you really want to keep your vehicle, speak with your lawyer about possible choices. A lot of the time you can lower payments by filing for Chapter 7 bankruptcy. For instance, you can get lower payments on you car if you purchased it before filing and took a loan with high interests on it.
Make sure that you act at the appropriate time. Timing is very important when it comes to personal bankruptcy filings. While there are times that it is ideal to file soon, there are other times in which you should wait. Speak with bankruptcy attorneys for a time frame for filing with your situation.
As you can see by now, you do have the option of filing bankruptcy. Given that fact, it should be your last resort due to the consequences involved. Don’t sit back and let the process take control of you. Take control of the process by doing your research so that you don’t lose more than you need to.
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