Many people find themselves feeling unworthy, depressed or frightened when going through bankruptcy. People sometimes assume incorrectly that they are up against a wall, and there’s no way out. As the following article explains, options do exist for those facing financial difficulty.
Lots of people have to claim bankruptcy when their bills are larger than their income. If you’re in this situation, learn about the laws where you live. Bankruptcy rules vary by jurisdiction. In certain states if you file for bankruptcy your home remains protected, but the laws vary depending on where you reside. Make sure you know the laws where you live before you file.
Be certain you understand all you can about bankruptcy by researching reputable sites that offer good information. The United States Check out the Bankruptcy Institute site and do some research about consumer’s rights. The more you know about it, the better you are able to make the best decision for your situation and to make sure that the bankruptcy proceedings move forward with minimal setbacks.
Dischargeable Debt
Do not use a credit card to manage your tax issues and then try to file bankruptcy. Generally speaking, taxes are not a dischargeable debt. The delays caused by this sort of tactic could leave you owing the IRS a great deal in interest and penalties. In most cases, you can use the adage that “a dischargeable tax is a dischargeable debt.” Therefore, you have no reason for use of a credit card, if the amount is to be discharged in due process of the bankruptcy.
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. Do not try to shield some assets or income from your creditors. This can get you in serious trouble and prevent your bankruptcy petition altogether.
It is important to understand your rights when filing bankruptcy. Filing a bankruptcy petition might facilitate the return of your property, including cards, electronics or other items that may have been repossessed. You may be able to recover repossessed property if the repossession occurred fewer than 90 days ago. Consult with a lawyer who is able to assist you in the filing of your petition.
Protect your house. Filing for bankruptcy does not mean you have to lose your home. You might be able to keep your home, for instance, if you have two mortgages or if your home has lost its value. Otherwise, look into the homestead exemption which may allow you to stay in your home if you meet financial threshold requirements.
Learn and gain a firm grasp of the differences in applying for Chapter 7 bankruptcies versus Chapter 13 bankruptcies. Be sure you go on the Internet and do your research to see what’s best for you. If you’re really not sure how this all works after your research, meet with your lawyer and ask them prior to making a decision.
Chapter 13 Bankruptcy
Thing about filing a Chapter 13 bankruptcy. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. You can keep personal possessions, as well as real estate, while paying into a debt consolidation system. It usually takes three to five years to fulfill this plan. When the time is up, you’re unsecured debts will be discharged. Remember that you must make every payment. Missing even one could cause the court to dismiss your case.
Make time to visit with family and friends during the bankruptcy process. Filing for bankruptcy is a difficult process. It takes a long time, it can be stressful, and people feel unworthy, guilty and ashamed. Many people decide to hide away from the world until the process is over. Pulling away from people who care for you will not help the situation, and can cause your negative feelings to intensify. Because of this, you need to make sure you spend as much time as you can with your family and friends, even if you are ashamed of your finances.
Filing bankruptcy under Chapter 13 means you can still get a loan for a car or a mortgage. There are extra hoops to jump through. Before you can take out a new loan, you will have to clear it with your trustee. Draw up a budget, demonstrating that you can afford the new loan payment. You will also need to explain why it is necessary for you to take out the loan.
Understand the rules and laws before submitting your petition for bankruptcy. There are many pitfalls when it comes to the code pertaining to personal bankruptcy that can lead to a lot of unwanted issues. If you make an egregious mistake, the judge might even dismiss your case. Make sure you have a decent understanding of the bankruptcy process before you proceed. This will make things a lot more simple in the long term.
Don’t believe the myth that declaring bankruptcy means you lose everything you own. You can keep personal property. This will include things like clothes, jewelry and electronics. Depending on the state you are from, what kind of bankruptcy you’re filing, and your specific case, you could be allowed to keep bigger items, like your car or house.
Filing for bankruptcy isn’t the end of the world. Although you may feel bothered at first, you will see that you can overcome the effects of bankruptcy. By using the advice that has been given to you, you can find a way to clear up your personal debt.
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