Carrying too much debt is a problem a lot of people are dealing with now. If you are in this situation and do not take take action, things will only get worse as collection agencies try getting their money. If this sounds a lot like your personal situation, you may have started thinking about filing for bankruptcy. Go over the tips presented in this article to figure out if bankruptcy is the best solution.
The primary catalyst for filing personal bankruptcy is having a large amount of debt that can’t be readily repaid. If this applies to you, be sure that you know what the laws of your state are. Each state has their own bankruptcy laws. Your home is safe in some states, but in others it’s not. Before filing for personal bankruptcy, be certain that you are familiar with the laws.
Don’t pay tax requirements with your credit cards with the thought of starting the bankruptcy process afterward, without doing your research first. In most states, this debt won’t be discharged, and you could end up owing the IRS a whole lot more. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. 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.
Make sure you keep reminding your attorney about any important details in your case. You should not take for granted that your lawyer will remember every important detail that you have have told him earlier without a reminder. Your case and future are affected by the attorney’s action, so never be afraid to communicate.
Be persistent in researching information about filing for bankruptcy and consult a qualified personal bankruptcy attorney. Filing a bankruptcy petition might facilitate the return of your property, including cards, electronics or other items that may have been repossessed. You may be able to get your property back if fewer than 90 days have passed between the repossession and are filing for bankruptcy. Speak to a lawyer who will be able to help you file the necessary paperwork.
Investigate any new laws before deciding to file a bankruptcy. Bankruptcy law has changed substantially in recent years, and therefore you must understand how such changes may affect your situation. If you are not sure about the current laws all you have to do is look into what laws have been passed.
A free consultation is standard for bankruptcy attorneys, so shop around before settling on one. Never settle for speaking with a paralegal or an assistant. They are not trained, nor allowed, to pass on legal advice. Hiring a lawyer could help you become comfortable with the legal things that you will encounter.
Chapter 13
If you are going to be filing for bankruptcy, think about filing Chapter 13. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. This will allow you to keep your personal property and real estate and repay your debts via a debt consolidation plan. The window for Chapter 13 repayments is typically 3-5 years. At the end of this time, any unsecured debt is discharged. Remember, though, that if you fail to make even one payment, the case will be thrown out and you’ll be right back where you started.
Be certain you are totally aware of the laws of bankruptcy before you file. For instance, you are not allowed to move assets from your name to someone else’s for a year before you file. Also, it is illegal to load up your credit cards with debt right before filing occurs.
Before you file your petition, be sure that you understand personal bankruptcy rules. There are many issues with personal bankruptcy code, and these pitfalls can cause problems with your case. Some mistakes could lead to having your case dismissed. Before continuing, research personal bankruptcy. This will make things easier in the long run.
If you believe that bankruptcy proceedings may be the answer to your financial woes, you should make haste to learn about the process. Filing for bankruptcy is a hard decision to make but if you wait too long, your situation will get worse. If you talk to a financial professional, they can assess your situation and give you suggestions on what could solve the problem.
If you have reached a point where you are forced to file bankruptcy, you can now understand that many resources are available to help you. If you open your mind to this process and think clearly, it can lead to better financial situation and leave you in a much better position than before.
