While filing for bankruptcy may be a hard decision to make, for some it is a necessity. Arming yourself with valuable insights helps when filing a claim. Continue reading for good advice from others that have filed for bankruptcy themselves.
People generally mostly feel the need to get a bankruptcy filed for when they have more money owed than they can get. If this is your case, you should do some research about bankruptcy laws in your state. Bankruptcy laws vary from state to state so it is important to do your research. For instance, your home might be protected in some states while you might lose it in others. Do not file before learning about the bankruptcy laws in your state.
Do not even think about paying your taxes with credit and petitioning for bankruptcy right after. You will find few states that discharge this kind of debt. You may also wind up owing a lot of money to the IRS. A common rule is that dischargeable tax means dischargeable debt. So as you can see, in this situation there is no need to use the card when the debt will be discharged when you file for bankruptcy.
When you realize that you probably will file for bankruptcy, do not pay your creditors or try to avoid bankruptcy by spending all of your regular or retirement savings. Unless there is no other choice a retirement account should not be used. Your savings accounts offer valuable financial security so try to leave them intact.
It should go without saying, but refrain from lying in your bankruptcy filings. Not only is hiding income and assets wrong, it is also a crime.
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. It is crucial to read the list before you file for bankruptcy so you know whether your favorite items will be taken. It is important to know what types of possessions may be taken away before they actually are seized.
Find a specialized lawyer if you are thinking about filing for bankruptcy. Bankruptcy can be highly confusing and stressful, and you need an unbiased partner who can help simplify the process. An attorney specializing in personal bankruptcies can assist and make certain things are being handled correctly.
Safeguard your home. Bankruptcy filings don’t necessarily have to end in the loss of your home. Depending on whether the value of your home has decreased or if you have a second mortgage on the home, you may end up keeping it. Another option is the homestead exemption that has certain income and financial requirements, but may also allow you to keep your home.
Chapter 13 Bankruptcy
Consider Chapter 13 bankruptcy, if you chose to file. If you are receiving money on a regular basis and your unsecured debt is under $250,000, you may be able to file Chapter 13 bankruptcy. Chapter 13 bankruptcy permits you to remain the owner of your properties, while allowing you to repay your debt using a debt consolidation loan. That plan lasts approximately three to five years, and then you are discharged from unsecured debt. Remember that you must make every payment. Missing even one could cause the court to dismiss your case.
Being with the people who you love should be still be a top priority. Going through bankruptcy is difficult. It takes time and a lot of people feel stressed and ashamed throughout this procedure. Some people do not even want to speak with others until the bankruptcy is official. This is not a good idea because staying alone could cause serious problems with depression. It’s crucial to spend time with loved ones despite your present financial situation.
After your initial filing, take time to enjoy yourself a bit and get your mind off of it. The process of filing for bankruptcy can make people a nervous wreck. This kind of stress can take a heavy toll on your personal life, especially if you are not making any efforts to adopt a positive attitude. Life will surely get better after you finish this process.
No one is happy to be bankrupt; sometimes it is the only option. Here you have found some great advice and help to guide you in your bankruptcy. Know that you are not the first, and surely not the last. Taking time to learn from those who have traveled this road before you will make your own journey less stressful.
