Filing for personal bankruptcy protection is an important strategy for people that have had assets, such as their vehicle, seized by the IRS. Bankruptcy will hurt your credit, this is true. However, it may be the only viable option available to you. The advice below will provide you with all the information you need to understand the results of choosing to file for bankruptcy.
One of the best ways to learn more about the bankruptcy process is to hit the Internet and look up reputable bankruptcy websites. The United States The Department of Justice is just one resource of information available to you. The more you know, the more you’ll knwo that you’ve made a wise decision and the you’re making sure your bankruptcy goes as smooth as possible.
Don’t pay tax requirements with your credit cards with the thought of starting the bankruptcy process afterward, without doing your research first. Most of the time, you cannot discharge this debt. As a result, you will owe the IRS a lot of money. The rule here is that if you can get the tax discharged then you can get the debt discharged. There isn’t any reason to use a credit card to pay the tax bill since the bill can be discharged anyway.
It is essential when going through bankruptcy that all of your income and assets are reported openly and honestly. Remember that if you hide your valuable assets or income from your bankruptcy trustee, you may risk a number of penalties and complications. Among these is the possibility that you could be blocked from ever filing again.
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. After a while, you may be able to get unsecured credit again.
Never give up. When you file for bankruptcy you may be allowed to recover property like your car, electronics or jewelry that might have been repossessed. If your property has been repossessed less than 90 days prior to your bankruptcy filing, there is a good chance you can get it back. Speak with a lawyer that will provide you with guidance for the entire thing.
Don’t pay for an attorney consultation and ask him or her anything you want to know. Since most attorneys offer free consultations, meet with a few attorneys before deciding who to hire. Only choose an attorney once all your concerns are answered to your satisfaction. You can think about your decision before making a commitment. You have lots of time for consulting with other lawyers.
If you are seriously thinking of filing bankruptcy, make sure that you contact an attorney. Bankruptcy is a complex process, and you probably don’t know all the information that is required to navigate it. A personal bankruptcy attorney can help and guide you along through the bankruptcy process.
Investigate any new laws before deciding to file a bankruptcy. This area of law is in constant flux and it is imperative that you know where the law stands at the time you file for your bankruptcy. Your state’s legislative offices or website will have up-to-date information about these changes.
A free consultation is standard for bankruptcy attorneys, so shop around before settling on one. Always ensure that the person you meet with is a real lawyer, not a legal assistant or paralegal. These people can’t give legal advice. Interviewing multiple attorneys is a good way to find the best fit.
Chapter 13 Bankruptcy
Consider if Chapter 13 bankruptcy is an option. In most states, Chapter 13 bankruptcy law stipulates that you must have under $250,000 of unsecured debt and a steady income. This lets you keep any real estate and personal property while you repay all your debts through a consolidation program. This plan usually lasts from 3 to 5 years, after which, you will be discharged from all unsecured debt. However, if you were to miss a payment, the court would dismiss your case right away.
As said in the beginning of the article, personal bankruptcy is always an option. However, it should not be anyone’s first choice because it does not reflect well on credit. The best way for someone to avoid financial stress and hold onto their possessions is by learning more about bankruptcy.