When a person has to file bankruptcy, they may feel anger or frustration. Many live with the constant fear of being unable to repay their debts while also maintaining a decent standard of living. As you will soon learn, there is a way out.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. Should the tax be dischargeable, the debt is often dischargeable as well. If you live in an area where tax can be discharged through bankruptcy, financing your tax bill is pretty pointless.
Before you proceed with your personal bankruptcy case, review your decisions to be certain that the choice you are making is the right. You have better options. For example, you could try credit counseling. Before you take the drastic move of filling for bankruptcy and living with a long lasting bad credit history, make sure to consider using another way that may not be as damaging to your credit.
Always be honest and forthright when it comes to your bankruptcy petition. To avoid problems, penalties and future re-filing bans, resist the urge to hide documentation or assets.
It is important to remind your lawyer of any details that may be important to your case. Don’t assume that they’ll remember something important later without having a reminder. Don’t be afraid to speak up, as it is your case and your future will be affected by its outcome.
Don’t throw in the towel. Filing for bankruptcy may allow you to get back property, such as an auto, jewelry, or electronics, that you may have had repossessed. If the items were repossessed less than three months prior to your filing date, you may be able to recover them. Consult with a lawyer who is able to assist you in the filing of your petition.
You should be able to meet with a specialized lawyer for free to ask your questions. Nearly all attorneys offer free initial consultations, so you should be able to meet with a few before you make a final hiring decision. Make a choice only if you have received good answers to all the questions and concerns you brought to the table. You don’t need to decide what to do right away. You have lots of time for consulting with other lawyers.
You may have heard bankruptcy referred to differently, either as Chapter 7 or Chapter 13. Learn the differences between the two before filing. In Chapter 7 bankruptcy, your debts are all eliminated. The ties with the creditor will be broken. If you file using chapter 13 bankruptcy, you will go through a sixty month repayment plan prior to all your debts being completely dissolved. You need to be aware of the pros and cons of each type of bankruptcy so you can correctly select the best choice for your situation.
Since it is possible to obtain a free consultation from the majority of bankruptcy lawyers, meet with a few of them prior to choosing one. Ensure that your meeting is actually with the attorney, not with a paralegal or an assistant. People in these positions are unable to offer legal advice. Take some time to talk to different lawyers to find one that fits your needs, and meshes well with you.
When your income surpasses your bills, you should not be filing bankruptcy. Bankruptcy might seem like a good way to get out of paying your bills, but it will devastate your credit for the next ten years.
Before declaring bankruptcy, see if there’s anything less drastic you can do to repair your credit. Talk with a bankruptcy lawyer and ask about alternatives, such as debt consolidation or negotiating with creditors. Loan modification can help you get out of foreclosure. These plans allow you a longer pay off period by extending the term of the loan, reducing the rate of interest or forgiving late fees. When all is said and done, creditors want their money and find repayment plans preferable to not getting paid at all.
Before declaring bankruptcy, it is important to know your rights. There are unscrupulous debt collectors who may suggest that your obligations cannot be included in a bankruptcy. Only a few debts, including child support and tax liens, are ineligible for bankruptcy. If you are unsure about specific types of debt, check the bankruptcy laws in your state or consult an attorney.
Know the bankruptcy code backwards and forwards before filing. For instance, it’s prohibited for an individual to transfer assets to someone else a year before filing for bankruptcy. Also, it is illegal to load up your credit cards with debt right before filing occurs.
Understand the rules and laws before submitting your petition for bankruptcy. Your case may be rife with issues due to pitfalls inherent in codes regarding personal bankruptcy. If you commit severe mistakes, your bankruptcy could be dismissed. Do the proper research on bankruptcy before taking the next step. Doing so will pave the way to an easier process.
It is important not to delay the process of determining whether or not you should file for bankruptcy. As with anything in life, putting off important things such as debt repayment can snowball quickly out of control. By talking to a professional, as soon as possible, they can give you some advice on things you can do before it all gets too complicated.
Now that you’ve read this article, I hope you can see that having personal bankruptcy doesn’t necessarily mean doom for you. Although it is hard at first, you will get through it. With the advice in this article, you can ascertain the best way to escape your debt.