It is easy for people to dismiss bankruptcy as an option for failures, until they are confronted with the need themselves. Situations like a job loss or a divorce can bring you to a situation where the only solution is bankruptcy. Follow the advice presented here if this describes your situation.
A lot of people find themselves needing to file bankruptcy when they are unable to pay their bills. If you find yourself going through this, you should know all about the laws that are in your state. Each state has their own bankruptcy laws. Your home and other major assets may be protected in your state, while they are vulnerable in other states. Be sure you educate yourself on local laws prior to filing.
Do not use a credit card to manage your tax issues and then try to file bankruptcy. In some places the debt can not be discharged, and you may still need to pay the IRS afterward. Transferring the debt to another medium (e.g. a credit card) won’t magically make a tax debt discharagable, either. This means using a credit card is not necessary, when it will just be discharged.
Be certain you are making the right choice before you file for bankruptcy. Look into other options, such as consumer credit counseling. Bankruptcy is a serious negative on your credit history so make sure you have no other options before you file. It is important to keep your credit history as positive as possible.
Be honest when filing for bankruptcy, because hiding liabilities or assets can only cause trouble to you. Wherever you file, that court has to be made aware of all details regarding your finances, positive and negative. You are in this situation, now help them to give you the best assistance possible to deal with it. You do that by giving full disclosure and holding nothing back.
Do not give up hope. If you’ve had collateral, such as a car, electronics, or jewelry repossessed for non-payment, you might be able to recover the property when you file for bankruptcy. If the property you own has been repossessed under 90 days before the bankruptcy filing, you may still be able to get it back. Consult with a lawyer who can help you along with filing the petition.
There are two types of bankruptcy filing, Chapter 7 and Chapter 13 so make sure you know the differences. Chapter 7, for example, will wipe away every one of your outstanding debts. Your responsibilities to your creditors will be satisfied. Chapter 13 bankruptcy allows for a five year repayment plan to eliminate all your debts. It’s important to know what differences come with every type of bankruptcy. This will let you find out what’s best for you.
Many bankruptcy attorneys offer the first consultation with no charge, so consult with several before deciding on one. Ensure that you have a meeting with a real lawyer instead of an assistant, since they can provide the best advice. Be sure to check out a number of lawyers so that you will find one who is just right for you.
Learn what you can about Chapter 13 bankruptcies. If you are receiving money on a regular basis and your unsecured debt is under $250,000, you may be able to file Chapter 13 bankruptcy. This will allow you to keep your personal property and real estate and repay your debts via a debt consolidation plan. Generally, this stays in effect for up to 5 years. Afterwards, your unsecured debts clear from your accounts. However, if you are unable to properly commit to the plan you agree to, your case can be dismissed.
When you file for bankruptcy remember that you are not going to lose all your assets. You will be able to keep your personal property. This includes items, such as jewelry, clothes, household furnishings, electronics, etc. The personal items that you are allowed to keep will depend on your home state’s individual bankruptcy laws, your personal financial situation and the specific bankruptcy that you are filing for.
Pick you bankruptcy attorney judiciously. There are a lot of new, inexperienced bankruptcy attorneys. Ascertain that your choice of attorney is an experienced, properly licensed one. You can learn of a lawyer’s history and reviews from past clients via the Internet.
Accuracy is key. You might have an attorney fill out the paperwork, but the court will penalize you, not the attorney, if there is inaccurate information filed on your behalf. Remember that every attorney has multiple files to handle at once, and therefore he or she may well make an error every now and then. This means that you should scrutinize all paperwork the lawyer submits and correct any errors you find immediately.
Once you know that you have absolutely no other alternatives, make yourself educated as much you possibly can about your state’s bankruptcy laws. This is your future and you should acquire as much knowledge as possible while being thoroughly involved in the process, this way you can get the best outcome from this situation.
You should never lie when filing for bankruptcy. Trying to hide anything could get your petition shot down in court. If it has a bearing on your case, then all assets and income must be declared. This will show to the court that you are sincere in wanting to resolve your issues and this will help you along the way.
Bankruptcy is a valid option to consider once you begin to run out of ways to keep your debts under control. Don’t carry the weight of the world on your shoulders. If the circumstances that brought you here were not within your ability to control, let go of the stress and guilt associated with them. You can find valuable information by reading this article.