Most people never expect to be in the position of facing bankruptcy. Changing circumstances often create a situation where there is no better choice, and knowing how to deal with it is important. If you discover that you are faced with bankruptcy, you can help yourself with the knowledge provided below.
Bankruptcy Laws
Lots of people have to claim bankruptcy when their bills are larger than their income. 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, in some states you can keep your home and car, while other states prohibit this. It is important to understand the laws in your state before filing for bankruptcy.
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 won’t be able to discharge this debt, and you could make things worse with the IRS. Bear this in mind; if the tax can be discharged, then the debt can be as well. Thus, it doesn’t make sense to use a credit card when it is going to be discharged when you file for bankruptcy.
If you are feeling like you are seriously going to have to file for bankruptcy then do not clear out your savings. Unless there are no other options, your retirement funds should never be touched. While dipping into your savings is likely to be necessary, avoid wiping it out completely to prevent leaving yourself with little financial security in the future.
It is important to remind your lawyer of any details that may be important to your case. Don’t assume that he will remember something you told him weeks ago. This is your bankruptcy and your future, so never be nervous about speaking your mind.
Prior to putting in the bankruptcy paperwork, determine what assets are protected from seizure. The Bankruptcy Code has lists of various asset types that are exempt during the process. It is important to be aware of this list so you will know what assets are saved. If you fail to go over this list, you may be unpleasantly surprised sometime down the road if any of your most valued items are seized.
Do not give up. Filing a bankruptcy petition might facilitate the return of your property, including cards, electronics or other items that may have been repossessed. If the property you own has been repossessed under 90 days before the bankruptcy filing, you may still be able to get it back. Consult with a lawyer who is able to assist you in the filing of your petition.
If bankruptcy is an option for you, secure the services of an attorney. Bankruptcy is complicated, and having someone to help you navigate the process is crucial. A qualified bankruptcy attorney can guide you through the filing process.
Chapter 7
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. In Chapter 7 most of your outstanding accounts will essentially be erased. All the things that tie you to creditors will go away. 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 have to know what differs between all of the kind of bankruptcy, so you know which is one is ideal for you.
Most bankruptcy lawyers give free consultation, so try to meet with these types of lawyers before deciding on hiring one. Be certain you talk to the lawyer, himself, instead of a paralegal or assistant; those people aren’t allowed to give legal advice. Comparing different lawyers makes it possible to find one with whom you work well.
Learn how Chapter 7 bankruptcy and Chapter 13 bankruptcy differ from each other. By researching each type, you can begin to understand which method is right for you. If you have trouble understanding the wealth of information, talk to your lawyer so he or she can help you make an informed choice.
Find out more about Chapter 13. 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. Expect to make payments for up to 5 years before your unsecured debts are discharged. Remember that if you fail to make any of the payments on time, the court may dismiss your case.
You should get some advice on bankruptcy if you decide you to file. The process will be a lot easier if you have the right information. The article that you just read offered valuable information which you can use to help alleviate some of the stress when dealing with your financial situation.
