If you are facing the repossession of valuables, such as cars or jewelry, you may be feeling some fear. If you want to put an end to the annoying calls, the threatening letters, and other intimidation tactics, filing bankruptcy may be your only out. The following article contains advice to assist you in dealing with the process.
Don’t think that loading up your credit card with tax debt and then filing for bankruptcy is an answer either. In most states, you will still owe money to the IRS and have to take care of the interest of your credit cards. Generally speaking, debt incurred to pay taxes and the tax bills themselves are treated the same in a bankruptcy. So, there’s no reason to make use of a credit cards if it will not be discharged in bankruptcy.
Be certain you are making the right choice before you file for bankruptcy. Alternatives do exist, including consumer credit counseling. Your credit record will be harmed by a bankruptcy filing, and therefore prior to making such a decision, it is wise to investigate other options in order to minimize the damage you suffer.
Make sure you keep reminding your attorney about any important details in your case. Don’t assume that he’ll remember something from a month ago; tell him again. Be as open as you can be to make sure your bankruptcy goes as well as possible.
After you have declared bankruptcy, you may have a hard time being approved for unsecured credit. If this happens to you, think about applying for a couple of secured credit cards. They offer you the chance to demonstrate the seriousness with which you now take your financial obligations. If you pay your secured card off on time, you’ll eventually find that companies will start offering you unsecured credit.
Find out what you exemptions are prior to filing bankruptcy. Check the bankruptcy laws in your state to find out if certain items are excluded from your bankruptcy filing. It’s crucial to read that list before filing to see which of your prized possessions can be seized. You may find yourself unpleasantly surprised when the things you value the most are taken from you without warning. This is why it is very important the familiarize yourself with this list.
Stay abreast of new laws that may affect your bankruptcy if you decide to file. Laws are ever-evolving. You must stay current with bankruptcy laws if you want to be successful in your challenge. Your state will have a website to check, or a number you can call, to learn the latest changes in the bankruptcy laws.
Learn the differences between Chapter 7 and Chapter 13 bankruptcies. If Chapter 7 is what you file, your debts will get eliminated entirely. Any debts that you owe to creditors will be wiped clean. With a chapter 13 bankruptcy, a 60 month period of time will be established in which you will repay the as much of your debt as possible. Following the 60 month period of time, the remainder of your debt will be excused. When choosing the type of personal bankruptcy that is correct for you, it is very important that you know the differences.
Be sure you have no other choice but to seek bankruptcy. You may be able to get away with going through debt consolidation to help make the payments easier to deal with. A bankruptcy filing takes a great deal of time, and it can be extremely stressful. You will have trouble getting credit down the line. Therefore, you need to be sure that you really have no other option than to file for bankruptcy.
Chapter 13 Bankruptcy
You could see about filing for Chapter 13 personal bankruptcy. 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. This plan normally lasts from three to five years, in which you’ll be discharged from unsecured debt. Remember that you must make every payment. Missing even one could cause the court to dismiss your case.
Although bankruptcy is an available option, it is best you look for alternative solutions first. Also keep in mind that a lot of debt consolidation companies are scams that can make your debt worse. Remember to use the tips from this article, and make good financial choices to avoid future debt.