And it goes without saying that whatever brought you to bankruptcy was probably an unhappy experience; nonetheless, when your bankruptcy proceedings are over, you can move on to have a happier life. Bankruptcy is all about giving you a fresh start. Read this article to learn how bankruptcy is a constructive, not destructive, process in reshaping your financial situation.
Do not even think about paying your taxes with credit and petitioning for bankruptcy right after. Most of the time, you cannot discharge this debt. As a result, you will owe the IRS a lot of money. If the tax can be discharged, so can the debt. This means using a credit card is not necessary, when it will just be discharged.
Make sure you are completely honest when filing for bankruptcy. Hiding your assets is never wise. The professional that helps you file for bankruptcy has to have a complete and accurate picture of your financial condition. Don’t hold back information and create a strategy so you can deal with what’s really happening.
Chapter 13 Bankruptcy
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Chapter 7 is the best option to erase your debts for good. This type of bankruptcy ends any relationship you might have with creditors. With a Chapter 13 bankruptcy, you will have to make payments for 5 years before the debts are forgiven. It is important that you understand the differences between the different types of bankruptcy, so that you can decide which option is best for you.
Consider filing using chapter 13 bankruptcy. You are probably eligible for Chapter 13 if your income is consistent and your unsecured debt is under $250,000. This allows you to keep possession of your real estate and property and repay your debt through a debt plan. These kinds of plans usually range across 3, 4 and 5 years. Once this is done, all your unsecured debt will get discharged. Keep in mind that even missing one payment can be enough for your whole case to get dismissed.
Always make your loved ones a priority. Going through bankruptcy is a lot of stress. It is long, stressful and makes people feel like losers. Lots of people decide they should hide from everyone else until it is all over. But, keeping to yourself is likely to cause even greater sadness and despair. Time spent with people who care about you can give you new perspective on your financial situation.
Remember to have fun with your life when you’re done with the filing process initially. Bankruptcy is a stressful process: you will have to go over your bad financial decisions and perhaps feel ashamed about your decision. Don’t let the process control you in a negative way. You will get through it, and you should make an effort to remember that. Things will be sunnier after you take positive steps to move forward.
Before filing for bankruptcy, learn your rights. Do not rely on your debtors information about whether or not certain loans can be included in your bankruptcy. What you can’t file on is very small, like student loans or child support payments. If your creditors are telling you any other kind of debts cannot be cancelled, get a written proof and send it to the general office of your state’s attorney to report this illegal behavior.
Gain an understanding of bankruptcy law before you file. There are many pitfalls when it comes to the code pertaining to personal bankruptcy that can lead to a lot of unwanted issues. Some mistakes can even lead to your case being dismissed. Make sure you have a decent understanding of the bankruptcy process before you proceed. This will make the bankruptcy process much simpler.
The road to personal bankruptcy is a sad and difficult one. But, just because you ended up in this dark place does not mean that the sun cannot shine once more. By embracing the information that has been provided here to you, you can take the negative connotation that surrounds bankruptcy and change it to a positive one.