Filing for bankruptcy can be relieving and stressful, all at once. It is embarrassing having people research into your finances and assets. However, when your bankruptcy is over, you can re-establish your finances and no longer need to tolerate bill collectors. Continue reading to learn what you need to know to make your bankruptcy almost painless.
Do not use a credit card to pay income taxes and then file for bankruptcy. Most states do not look at this debt as chargeable, and you could end up owing money to the IRS. Generally speaking if you can discharge the tax, you can discharge the debt. This means using a credit card is not necessary, when it will just be discharged.
If filing bankruptcy is in your future, don’t waste any savings you may have attempting to pay off your debts. You should not use your retirement savings unless the situation calls for it. While you may have to use a part of your savings, never completely wipe it out which would only leave you in worse financial shape in the future.
Don’t file for bankruptcy until you know what assets of yours can and can’t be seized. The Bankruptcy Code lists the kinds of assets which are exempted when it comes to the bankruptcy process. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. If you don’t heed that advice, you might find yourself getting surprised when your favorite things are repossessed.
You should never give up. When you file for personal bankruptcy, you may even be able to retrieve personal property that has been repossessed. For example you may be able to get your car, electronics and even jewelry returned to you. If the repossession occurred within 90 days from your filing date, it is possible that some of your property can be returned to you. Speak with a lawyer that will provide you with guidance for the entire thing.
Before declaring bankruptcy, be sure you’ve weighed other options. If your debts are really not overwhelming, you may find the assistance you need by consulting a consumer credit counselor. You may have the ability to negotiate much lower payments, just be sure any debt modifications you agree to are written and that you have a copy.
Chapter 13 Bankruptcy
Consider Chapter 13 bankruptcy, if you chose to file. Chapter 13 bankruptcy is a good choice for people whose unsecured debts amount to lower than $250,000 and who receive a regular income. This will allow you to keep your personal property and real estate and repay your debts via a debt consolidation plan. This lasts for three to five years and after this, your unsecured debt will be discharged. Stay mindful that should you for any reason miss even one plan payment, your whole case is going to get thrown out by the court system.
Never forget that you still deserve to enjoy life while you go through the bankruptcy process. Filing is the most intensive step in the process, so afterwards it’s important to let go of some of your stress. Make sure you take care of your part and let your attorney do the rest. After you have finished filing for personal bankruptcy, your life will improve.
If you have filed for Chapter 13 bankruptcy, you will still be allowed to apply for and receive a mortgage or car loan. There will, however, be obstacles. Normally, the trustee assigned to your bankruptcy must approve any new loan. Present a planned budget that shows how you can take on the loan payment and stay current. Also, you need to be ready to say why you’re going to need the item.
Know your rights when filing for bankruptcy. Occasionally, debt collectors will attempt to convince you that your debt isn’t eligible for bankruptcy. However, there are few debts that cannot be eliminated, like student loans and child support payments. If you know that a debt can definitely be bankrupted, yet the collector still harasses you, file a report with the attorney general in your state.
There are pros and cons to filing bankruptcy. No matter why you are filing, you must remember that knowledge is the key to help during the process. You will have an easier time with your bankruptcy filing thanks to this article’s tips. Use the tips presented here to help the process goes smoothly and more comfortably.