Personal bankruptcy is always an option for those who have had possessions, such as vehicles, repossessed by the Internal Revenue Service. There are times when bankruptcy is the last option left, even if it substantially damages your credit score. Continue reading to learn about the bankruptcy process, and what filing for it will mean for you.
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. 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.
Try to find a bankruptcy attorney who is personally recommended, rather than off the Internet, or out of the yellow pages. Companies are constantly popping up, claiming to help, yet only seek to profit from your misery. In ensuring that your bankruptcy is as simple as possible, trusting your attorney makes a big difference.
When filing for bankruptcy it is crucial that you are candid and not concealing any liabilities or assets, as it will only show up in the future. Whomever you plan to use should know a lot about the finances that you have, both the good and the bad. Being honest is both the right thing to do and, moreover, it is required by law.
A free consultation is standard for bankruptcy attorneys, so shop around before settling on one. Make sure that you meet with an actual lawyer and not an assistant or paralegal, as these people are not allowed to provide legal advice. Take some time to talk to different lawyers to find one that fits your needs, and meshes well with you.
Put forth the effort to grasp the distinctions between Chapter 7 and Chapter 13 bankruptcies. Spend time researching the advantages and disadvantages of filing for each one of these. If you are confused by what you find, be sure to ask your attorney to explain anything that is unclear before you make your decision about filing.
Consider Chapter 13 bankruptcy, if you chose to file. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. Expect to make payments for up to 5 years before your unsecured debts are discharged. However, if you are unable to properly commit to the plan you agree to, your case can be dismissed.
While going through this process, spend more time with friends and family. Filing for bankruptcy, and all that comes with it, can be hard to handle at times. The long process can leave people stressed out and racked with guilt and shame over having their financial affairs laid out for everyone to see. Some folks tend to stay in the shadows until their case has concluded. Isolating yourself from your loved ones can lead to feelings of depression. Make it a point to catch yourself if you feel yourself pulling away from others. Tell others that you would like to do some enjoyable things together while you go through bankruptcy process, then do it.
If you plan on filing bankruptcy, never wait too long. Some people think that by ignoring financial problems, they will just disappear. This kind of thinking could prove to be a mistake. Being in debt can quickly put you into very deep hole and if you do not rectify the situation fast, you could face wage garnishment or even worse, foreclosure. You should call a good bankruptcy lawyer and ask for advice as soon as you find your debts have become completely unmanageable.
Prior to filing, it is important that you know all about bankruptcy laws. For instance, a filer cannot transfer assets to someone else for at least a year before filing. Also, the filer can not increase their debt before filing.
Just because you have filed for bankruptcy will not necessarily mean you are going to have to give up everything you own. You will be able to keep personal property. These personal items include clothing, jewelry, household furnishings, electronics and other similar items. The laws of your state, the kind of bankruptcy you go for, and your finances will determine whether you will lose large assets like your car or your home.
In conclusion, the option of bankruptcy is always there. The consequences for your credit make it a last resort in most cases. Knowing the ins and outs of bankruptcy can make the filing process easier and make it less likely that you’ll have to forfeit your property.