Filing for bankruptcy is still an option for anyone who has had possessions repossessed by the IRS. While bankruptcy is a big hit to your credit history, it can be the only option. Keep reading to gain a better understanding of the bankruptcy process and of the ramifications of initiating a filing.
Before you file for bankruptcy, carefully consider if it is the right option for you. You have other options, including consumer credit counseling help. Your credit score will be forever effected by bankruptcy, which is why you should do everything else in your power to resolve matters first.
Don’t hesitate to give your attorney a heads-up about something she has missed. Lawyers are people too, and sometimes they forget important information and need to be reminded. It is in your best interest to speak out. You are in control of the outcome of your bankruptcy.
Determine which of assets are safe from seizure and which are not before filing for personal bankruptcy. The Bankruptcy Code provides a listing of the various asset types that are not included in the bankruptcy process. It is crucial to read the list before you file for bankruptcy so you know whether your favorite items will be taken. While it might not be possible to protect a particularly beloved possession, at least you will know in advance whether or not you risk losing it.
Do not abandon hope. There may still be way to get repossessed items back after you file for bankruptcy. You may be able to recover repossessed property if the repossession occurred fewer than 90 days ago. Talk with an attorney who can guide you through the process of filing a petition.
It is important to protect your home when filing bankruptcy. You do not have to lose your home in the process of a bankruptcy. For instance, if your home value has dropped recently, or even if you happen to hold a second mortgage, you may not necessarily lose the home. There are also homestead exemptions which, depending on your other finances, may allow to remain in your home.
Don’t be tempted to race toward a bankruptcy without taking time to make sure it is the right thing for you to do. Perhaps just consolidating some of your existing debt, could make them easier to manage. Bankruptcy cases are long, anxiety-filled experiences. It will have a major effect on your credit as time goes on. Because of this, filing for bankruptcy should only be used as a last resort.
Chapter 13
Learn what you can about Chapter 13 bankruptcies. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. That way, you can hold onto your personal assets and pay back a portion of your debts pursuant to an approved plan. This plan normally lasts from three to five years, in which you’ll be discharged from unsecured debt. However, if you were to miss a payment, the court would dismiss your case right away.
Going through bankruptcy is tough and can be mentally and emotionally draining. To have a reliable and trustworthy guide through the process, find a highly qualified attorney. Look beyond the fees a lawyer charges when you make your hiring decision. It may be not be necessary to hire a costly attorney; just make sure he or she is qualified to handle your case. You can get good information about attorneys from friends,the internet and free consultations that most attorneys provide. If you want to know more about a specific lawyer, attend a court proceeding and see how the attorney handles herself.
Before you even consider filing for bankruptcy, familiarize yourself with the laws surrounding this process. For instance, a filer cannot transfer assets to someone else for at least a year before filing. Maxing out your credit cards immediately before filing is also illegal.
It is important to be upfront with all your financial information when filing for bankruptcy. You can delay your bankruptcy process if you do not add in all important information. No matter how insignificant a sum seems, include it in the documentation. Don’t forget about side jobs, loans you’ve taken out or vehicles that might count as assets.
As you can see by now, you do have the option of filing bankruptcy. It is not something that should be done lightly, however, due to the negative effects it can have on one’s credit. A person who becomes well informed in regard to personal bankruptcy will avoid a great deal of stress and will be better prepared to defend valuable belongings from seizure.
