Filing for bankruptcy is a serious decision that should be considered throughly. You need to be as well-informed as possible when you make bankruptcy decisions. The tips and advice you will learn in this article will show you the proper direction to take. Proper research can assist you with any choices you have to make.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. The fact is that the credit card debt will be ineligible for discharge, and your tax debt may increase. Should the tax be dischargeable, the debt is often dischargeable as well. Because of this, transferring the debt to your credit card is pointless.
Always remind your lawyer of specifics that are important to your case. Inaccurate or incomplete information can lead to your petition being denied. Remember that you’re the boss. You’re paying your lawyer, so you should not be afraid to have your say. After all, the quality of your life hangs in the balance.
Learn the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. There is a wealth of information online about each type of bankruptcy and their respective pluses and minuses. Learning about bankruptcy is not simple, so call a bankruptcy attorney to make an appointment to ask questions.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy might be a good option, so don’t overlook it. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. Chapter 13 bankruptcy permits you to remain the owner of your properties, while allowing you to repay your debt using a debt consolidation loan. Generally, this stays in effect for up to 5 years. Afterwards, your unsecured debts clear from your accounts. However, if you miss even one payment, the court will dismiss your entire case.
Bankruptcy can be a good time to spend time with people you love. The process for bankruptcy can be brutal. At the end of the process, many people are left with feelings of shame and worthlessness. There are a number of people who wish to go into seclusion while undergoing the process of personal bankruptcy. But, keeping to yourself is likely to cause even greater sadness and despair. Thus, you must keep living your life and socializing with those you love, no matter what is going on with your bankruptcy.
Prior to filing, it is important that you know all about bankruptcy laws. Did you know that in some areas, you cannot transfer assets from yourself to another person in the year previous to filing occurring? In addition, it is unlawful for the filer to increase the amount of debt they are carrying on their credit cards right before they file.
Whenever you file a petition for bankruptcy, do not leave out any information about your finances or assets. Failing to disclose all of your financial information can cause your bankruptcy petition to be dismissed, or, at the very least, delayed. Make sure that you add very small sums, even if you believe that they aren’t important. Current loans, second jobs and assets ought to be included.
Do not take a large cash advance from credit cards prior to filing, knowing that bankruptcy erases all debts. To do this would be considered fraud. Even after filing for bankruptcy, you might be forced to repay money gained in this manner.
Compile a list of the money your currently owe. This will be the basis for your bankruptcy filing, so make sure you include all the debts you are aware of. Be sure to verify the exact amount of each debt you owe by checking paperwork or calling your creditors. Take care not to miss any debts that you need to disclose, or you will be responsible for paying them back after you have filed for bankruptcy.
It is important to consult with an attorney who specializes in bankruptcy if you are headed toward bankruptcy. The complexities of the process of filing, court proceedings and other issues can best be handled by a competent lawyer. A good bankruptcy attorney will answer your questions and help you in filling out and filing your paperwork.
When you fill out the papers for filing bankruptcy, be sure to list every debt that you want to have eliminated. If you fail to list a debt, it may not make it into your discharge. It is up to you to ensure all things that need to be taken care of are written down, otherwise you will be stuck paying on things that weren’t discharged.
Some attorneys offer a phone service for free where creditors will be referred to when they wish to contact you regarding an account that’s delinquent. When a debt collector calls the number, they will be able to obtain verification that your personal debt is in the process of bankruptcy filing. Once this is done, they will cease and desist calling you.
If you are facing a looming tax debt, don’t think that bankruptcy can be your savior. Some filers pay the taxes that they owe with credit cards and then they file for bankruptcy. Do not assume that the credit card debt you incurred by charging your taxes will be wiped out with a bankruptcy filing. Remember that even if you use a credit card to pay for your taxes while you file for bankruptcy, you are still going to owe the amount due.
There are quite a few ways to file for bankruptcy. Do not be overwhelmed by the voluminous information available. Take time to think about what you have read here. That way, you’ll make the best decisions.