You’ve heard it before and you’ll hear it again–the economy is in rough shape. When there is a bad economy there are a lot of people losing their jobs and having problems with debt. Too much debt can lead to bankruptcy and all of its ill effects. If you, a friend, or a loved one is in financial trouble, this article could help decide if bankruptcy is the right option.
Do not try to get clever by paying your taxes via credit card before you declare bankruptcy in an effort to dodge your tax burden. In many parts of the country, you cannot get this debt discharged, and in the end you will be left owing the IRS a big sum of money. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. This means using a credit card is not necessary, when it will just be discharged.
Do not hesitate to remind your lawyer of any details regarding your case. Many times a lawyer may forget a key detail; therefore, it is important to remind your lawyer of any key information. All information submitted to the court with your signature needs to be double checked.
Stay positive. Filing for personal bankruptcy may possibly enable you to reclaim your personal property that have been repossessed, like your car, electronics and jewelry items. Filing for bankruptcy may allow you to regain ownership of recently repossessed property. Speak with your attorney about filing the correct petition to get your property back.
You should never pay for your first consultation with a bankruptcy attorney. Make the most of this free consultation by asking lots of questions. Most lawyers offer free consultations, so consult with a few before settling on one. Only choose an attorney once all your concerns are answered to your satisfaction. There is no need to offer an immediate hire, so take your time. So you have sufficient time to speak with a number of lawyers.
Investigate any new laws before deciding to file a bankruptcy. These kinds of laws are constantly changing and it is important that you are aware of these changes, so that you can learn how to properly file for bankruptcy. To learn about these changes, try contacting your state’s legislation office or checking their website.
Make certain that you comprehend the differences between Chapters 7 and 13. Chapter 7 is the best option to erase your debts for good. Any ties that you have with creditors will be dissolved. But, with Chapter 13, you will be in repayment plan for about 5 years prior to any debts you have being totally dissolved. It’s crucial that you know the differences between all of the various kinds of bankruptcies so that you may choose the best option for your situation.
Unsecured Debt
Consider Chapter 13 bankruptcy. With a regular income and unsecured debt below $250,000, Chapter 13 is probably best for you. You can keep personal possessions, as well as real estate, while paying into a debt consolidation system. The length of the plan is generally up to five years, and when this is over, you will be free of unsecured debt. Consider that if you even miss one payment, your case will not be considered by the court.
Make sure you understand your rights as you file for bankruptcy. Don’t take a debt collectors word for it simply because they tell you that you can’t have many or all of your debts erased by bankruptcy. What you can’t file on is very small, like student loans or child support payments. Should you face a creditor like this, and you are informed that the debt is not valid under the bankruptcy. These types of infractions should be reported.
Make sure that you act at the appropriate time. Timing is important, and that is especially true when filing for bankruptcy. Sometimes you should file immediately; however, there are times when it is better to delay until the worst has passed. Speak with a lawyer specializing in bankruptcy in order to learn when you should file your petition.
Bankruptcy Petition
Make sure that you disclose every bit of financial information on your bankruptcy petition. Failing to list these could cause the dismissal or delay of your bankruptcy petition. The most meaningless, innocuous finance or expenditure needs to be listed when you file a claim. This includes any jobs you have on the side, any vehicles you have and any outstanding loans.
Even the economy is gradually getting better, many people still do not have a job. Even when your financial situation is not producing enough income, there are some things one can do in order to avoid bankruptcy. Now you know all the options available to avoid bankruptcy, if at all possible. Hopefully, everything works out for you!
