If you have had any of your possessions repossessed by the IRS, personal bankruptcy may be an option for you. Although bankruptcy tends to destroy a person’s credit, it’s occasionally the only available option. The following article will provide some basic information about filing for bankruptcy and its possible consequences.
If you are in a position where you are unable to pay your debts, bankruptcy may be the only option for you. If this is your case, you should do some research about bankruptcy laws in your state. The laws governing bankruptcy vary from state to state. For instance, your home might be protected in some states while you might lose it in others. Be sure you educate yourself on local laws prior to filing.
As filing bankruptcy becomes more of a reality, don’t use your entire savings or your retirement funds to pay creditors or attempt to resolve insolvency. Leave your retirement accounts untouched unless there is absolutely no other alternative. Though you may have to break into your savings, keep some available for difficult times. You will be glad you did.
Credit Cards
After a bankruptcy, you may not be able to receive any credit cards. If so, apply for a secured credit card. By doing this, you will be letting people know that you want to fix your credit score. After a time, you are going to be able to have unsecured credit cards too.
Be persistent in researching information about filing for bankruptcy and consult a qualified personal bankruptcy attorney. Certain property cannot be repossessed while you are in the process of filing for bankruptcy so be sure to learn about the laws in your state. If you have property repossessed less than ninety days prior to filing your bankruptcy, you may be able to get it back. Consult with a lawyer who can advise you on what you need to do to file a petition.
Always weigh your options carefully prior to deciding to dive head first into filing a bankruptcy claim. For example, if your debt is small, try a type of consumer counseling program. You could even negotiate for lower payments. However, you should ensure that you always obtain a written record of all the changes to your debt that you’ve agreed to.
Consider filing using chapter 13 bankruptcy. If you have less than a quarter of a million dollars in debt that is unsecured and a regular income, you are eligible to file a Chapter 13. This lets you keep any real estate and personal property while you repay all your debts through a consolidation program. This repayment period usually lasts from three to five years. If you make your payments faithfully during that time, any remaining unsecured debt will be eliminated. Consider that if you even miss one payment, your case will not be considered by the court.
Before filing personal bankruptcy, consider other options. Consider credit counseling. Various non-profit companies are out there to give you assistance. They will liaise with those you owe money to and try to get better payment options opened to you. They act as intermediaries between you and your creditors; you pay the counselors and they pay the companies to which you owe money.
Never take big cash advances from the credit cards that you own prior to filing for bankruptcy, even though you know that the debt will be erased. That is considered fraudulent behavior, and you can still have to pay the credit card back, bankruptcy or no.
Pay attention to how you satisfy any personal debts before filing for bankruptcy. You might be legally unable to file for bankruptcy if you were still paying your creditors ninety days ago, or your family members a year ago. Find out more about legal requirements before making your decision.
When a bankruptcy becomes a possibility, you should look at retaining a lawyer. A good lawyer can properly advise you about the necessity of following through, simply a complicated process for you, and represent you when you need to go to court. They can also help to unravel the complexities of the paperwork and give you any further information you need.
Carefully pick the lawyer you will use when filing for bankruptcy. This area of law attracts some inexperienced amateurs. Check your lawyer’s credentials! Be sure he or she is experienced and has the correct licensing. Information on lawyers and their ratings by clients can be found on the Internet.
Regardless of how dire your situation may be, candor is critical. Lying about assets or debt is a bad idea in this situation. This not only unethical, it is simply illegal. If you lie, there is a chance that you will land in prison.
Some attorneys may offer to contact creditors in regard to any delinquent accounts in your name. You just provide the number, and they call to confirm that the debt is part of your bankruptcy. This will prevent them from calling you in the future.
As you can see by now, you do have the option of filing bankruptcy. But, filing ought not to be an automatic decision, as it does have serious implications. Protect your assets and avoid even more stress by learning as much as you can before you decide to file.
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