Deciding to file for personal bankruptcy is a major life decision, and should not be jumped into lightly. Read this article to find out more about personal bankruptcy and get the information you need to make an educated decision. Find out all the information you can before filing for bankruptcy.
You can find a wealth of information concerning personal bankruptcy by searching for websites which offer information about it. Many sites, including the U.S. Check out the Bankruptcy Institute site and do some research about consumer’s rights. By being well armed with the correct knowledge, you can be certain of the decision that you have made. Additionally, you will understand the processes necessary to conduct your personal bankruptcy matters in a smooth manner.
Don’t use a credit card to pay off your taxes before filing for bankruptcy. Most places will not consider the debt dischargeable, meaning you will have to pay the IRS a lot of money. If the tax can be discharged, so can the 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.
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. Make sure to review the list before filing a claim so you know if your valuables will be subject to seizure. It is important to know what types of possessions may be taken away before they actually are seized.
Don’t throw in the towel. Bankruptcy might help you get back things you thought you’d lost and had repossessed, such as electronics, vehicles and jewelry. If your personal property was repossessed within 90 days before your bankruptcy filing, you may have a chance of getting it back. Speak with your attorney about filing the correct petition to get your property back.
Be aware of recent changes, if any, in the bankruptcy code. Make sure to get the most up-to-date information concerning the bankruptcy laws in your state. Your state will have a website to check, or a number you can call, to learn the latest changes in the bankruptcy laws.
Chapter 13
Remember to understand the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Every one of your debts will be gone if you decide to go with Chapter 7. Any ties you have concerning creditors will definitely be dissolved. Filing Chapter 13 differs by requiring you to agree to a 60 month plan to repay your debts before they are totally eliminated. It’s important to know what differences come with every type of bankruptcy. This will let you find out what’s best for you.
Bankruptcy can be a good time to spend time with people you love. Going through a bankruptcy can be an excruciating experience. It is long, hard and sometimes leaves people feeling guilty or ashamed. Most people adopt a very negative attitude toward bankruptcy. Do not isolate yourself or you will put yourself at risk for depression. It’s crucial to spend time with loved ones despite your present financial situation.
Before you decide to file for Chapter 7 bankruptcy, you should consider what your bankruptcy might have on others, as your family and friends may be affected. Debts that involved a co-signer can be discharged in Chapter 7 bankruptcy. But, creditors will ask for the money from your co-debtor.
Don’t file for bankruptcy without knowing your rights. Bill collectors will lie to you and say you can’t have their bill discharged. There are few debts that can’t be discharged. If a collector tries to convince you that some other type of debt, such as a credit card, is non-discharagable, get the company’s information and send a report to your state attorney general’s office.
File when the time is right. Timing is very important when it comes to personal bankruptcy filings. Sometimes, you may need to file quickly; however, at other times, you should wait until the worst is over. Talk with a bankruptcy attorney to find out the ideal timing for filing based on your particular situation.
Get the word “shame” out of your head when filing for bankruptcy. The bankruptcy process can make many people feel ashamed, guilty and unworthy. However, having this feeling about yourself isn’t going to help anybody, and your health could even be compromised. If you are filing for bankruptcy and you are thinking negatively about the situation, make an effort to stop that now.
Before filing for bankruptcy, you must be educated on the specifics of all bankruptcy laws. For example, it is against the law to transfer any assets from the filer to another for a year before filing. Not only that, but the filer cannot lawfully accrue additional debt just prior to filing.
As shown in this article, bankruptcy doesn’t happen overnight. Many steps have to be taken, and all of them must be performed properly. By using the tips in this article, you will be able to successfully file for bankruptcy and begin to rebuild your life.
