If your debt has driven you to the brink of bankruptcy and you don’t know what to do, stop worrying. The Internet has a lot of advice for you about how to avoid things like bankruptcy. If you are ready to consider alternatives to a bankruptcy filing, the advice presented here may help.
Generally bankruptcy is filed when a person is facing insurmountable debt. If this is the case for you, you should begin to investigate the legislation in your state. Most states differ in their laws governing bankruptcy. For instance, your home might be protected in some states while you might lose it in others. Be sure to have some familiarity with the law in your jurisdiction.
Do not consider paying off tax debt with credit cards and filing for bankruptcy afterward. It won’t work. In a lot of places, the debt cannot be discharged, and you may still owe money to the IRS. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. Therefore, you have no reason for use of a credit card, if the amount is to be discharged in due process of the bankruptcy.
Once you file for bankruptcy, you will have a hard time getting loans or credits. If that’s the case, it is beneficial to apply for one or even two secured cards. This will show other people that you’re serious when it comes to having your credit record in order. Then, in time, it may be possible for you to obtain an unsecured credit card.
You are going to get found out and get in trouble if you don’t disclose all your assets, so be totally honest from the beginning. Your attorney and trustee should be privy to all information about your finances. Divulge all of your information so that you and your lawyer can devise the best strategy for dealing with your situation.
It is a good idea for you to hire a bankruptcy to handle your bankruptcy process. There are a lot of things to do during bankruptcy and that may be hard for you to understand on your own. Personal bankruptcy attorneys can help make sure everything is done properly.
Chapter 7
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. In Chapter 7 bankruptcy, your debts are all eliminated. All happenings with creditors will disappear. If you choose to file for Chapter 12 bankruptcy, you’ll be put into a 60-month plan for repaying your debts before they’re eliminated. In order to choose the right bankruptcy option, you need to know the differences between these kinds of personal bankruptcy filings.
Take advantage of the opportunity to consult with a number of bankruptcy lawyers who offer the first visit at no charge. Meet with the actual lawyer, not a paralegal or assistant, as they’re not allowed to give out legal advice. Shopping around for a lawyer can help you find someone with whom you feel comfortable.
Chapter 13 Bankruptcy
Consider filing for Chapter 13 bankruptcy. If you posses a regular source when it comes to income, and you have less than $250,000 of unsecured debt, you could file using Chapter 13 bankruptcy. Declaring bankruptcy can assist you in consolidating your debt so you can repay it more easily. The plan is usually for a term of three to five years, and a discharge will be granted at the end of that term. Remember that missing a payment to the plan will result in your case being dismissed.
Carefully consider filing for bankruptcy on loans that have a co-signer, especially if that co-signer is a business associate, close friend or relative. When filing Chapter 7, you are not legally responsible for the debts in your name. Your creditors can then come after your co-debtor for full repayment of the debt.
Do not wait until things go from bad to worse before filing bankruptcy. Many people simply try to ignore their financial troubles, hoping that they will somehow go away, but this is a huge mistake. It doesn’t take long for debt to become unmanageable, and not taking care of it could eventually lead to wage garnishment or foreclosure. Once you are aware that your financial situation is not manageable any more, your best bet is to speak with a bankruptcy attorney and find out what he or she recommends.
Make a comprehensive list of all of your financial information before you file for bankruptcy. Omissions or errors may cause your case to take more time to resolve, or even be rejected entirely. No matter how insignificant a sum seems, include it in the documentation. This includes any jobs you have on the side, any vehicles you have and any outstanding loans.
The right planning can help you get what you need. Any steps you take that give you additional time to address your debts are good ones. Every little bit helps when you are working to get out from under the threat of bankruptcy. Make appropriate, responsible plans and secure your financial future.
