Once you are faced with the possibility of losing treasured items like jewelry or cars, this can make you shy away from the IRS. Put your finances in order and file for bankruptcy if this is your only option to get out of debt. Continue reading for tips to help you get through bankruptcy.
Millions of Americans file for bankruptcy each year because they can not pay their bills. If this describes your situation, it makes sense to become familiar with relevant laws. Every state has a separate law having to do with bankruptcy. For instance, in some states, you can’t lose your home to bankruptcy, while in other states, you can. Make sure you know the laws where you live before you file.
One of the most important things to remember when filing for bankruptcy is to be honest and truthful every step of the way. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
When it comes to informing your attorney about your case, don’t be fearful. Many times a lawyer may forget a key detail; therefore, it is important to remind your lawyer of any key information. Your case and future are affected by the attorney’s action, so never be afraid to communicate.
Try to find a bankruptcy attorney who is personally recommended, rather than off the Internet, or out of the yellow pages. There are so many dime-a-dozen companies out there who make it a practice of preying on financial desperation. You need to make sure your bankruptcy goes smoothly, so find someone you know you can trust.
Prior to filing for bankruptcy, discover which assets cannot be seized. The Bankruptcy Code has lists of various asset types that are exempt during the process. Be well prepared for bankruptcy by reviewing this list. It will tell you whether are not the things you value most are subject to seizure. Failure to do this could cause some ugly surprises down the road when you discover that your valuables must be seized.
Keep with what you have decided to do. Many times you can get repossess property back once bankruptcy has been filed. If your personal property was repossessed within 90 days before your bankruptcy filing, you may have a chance of getting it back. Talk to a lawyer for help with the petition filing process.
Bankruptcy Laws
Learn the newest bankruptcy laws before filing. Make sure to get the most up-to-date information concerning the bankruptcy laws in your state. To know what these changes are, go to your state’s website or contact the legislative offices.
Before filing for bankruptcy, determine whether Chapter 13 or Chapter 7 is appropriate for your financial situation. If you file for Chapter 7 bankruptcy, all of your debts will be eliminated. Any debts that you owe to creditors will be wiped clean. If you file using chapter 13 bankruptcy, you will go through a sixty month repayment plan prior to all your debts being completely dissolved. To make the wisest choice, you will need to understand the consequences of each of these two options.
Protect your house. Filing for bankruptcy does not mean you have to lose your home. You can still keep your home, it just depends on your specific situation and the value of your home. If you meet certain criteria, you may be able to retain ownership of your home even after filing for bankruptcy.
Be sure you know what the difference between Chapter 13 and Chapter 7 bankruptcy is. Weigh all the information you can find on- and off-line to make an educated decision. If you have trouble understanding the wealth of information, talk to your lawyer so he or she can help you make an informed choice.
Unsecured Debt
If you are going to be filing for bankruptcy, think about filing Chapter 13. You are probably eligible for Chapter 13 if your income is consistent and your unsecured debt is under $250,000. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. This lasts for three to five years and after this, your unsecured debt will be discharged. Remember that you must make every payment. Missing even one could cause the court to dismiss your case.
Filing bankruptcy should only be considered after the other options have been exhausted. Avoid debt consolidation services and credit counseling services that seem too good to be true. Keep the advice you read in mind so that you’re able to make smart choices and stay out of debt in the future.
