Do not take bankruptcy lightly, this is a serious thing. It is essential for you to understand all the details involved when you file for bankruptcy. Use what you learn here to guide you towards making the right decisions regarding personal bankruptcy. No matter what tough decisions you have to deal with, you can do it!
Credit Card
Don’t use a credit card to pay off your taxes before filing for 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. Generally speaking if you can discharge the tax, you can discharge the debt. Just because your credit card could be discharged in bankruptcy does not mean you should use it.
Try to make certain you are making the right choice prior to filing your petition. You have other options, including consumer credit counseling help. Bankruptcy has a negative effect on your credit reports, in that it is permanently there. Before you take this step, make sure all your options have been considered.
When looking for a lawyer to handle your bankruptcy claim, the best way to go is off of a personal recommendation instead of simply flipping through the phone book. To handle your bankruptcy, you need a trusted attorney, not a shady one that is out to take your money.
Bankruptcy is tricky and hiring a good lawyer will be a must. The topic of bankruptcy is a complicated one and it is important that you know all about it. A qualified bankruptcy attorney will guide you through the steps and help you do everything properly.
Safeguard your home. Filing for bankruptcy does not guarantee that you will lose your house. You might be able to keep your home, for instance, if you have two mortgages or if your home has lost its value. There are other options such as a homestead exemption which offers you a chance to remain in your home, depending on whether or not you meed certain financial conditions.
It is imperative that you know for sure that bankruptcy is the option you need. It might be possible to consolidate some of your debt instead. Filing a claim can take a long time and cause much stress. Your future credit will be affected by these actions. This is why you must ensure that bankruptcy is the only option left for you.
Chapter 13 Bankruptcy
Look into filing Chapter 13 bankruptcy. If your source of income is regular and your unsecured debt is less than a quarter million, Chapter 13 bankruptcy is something you are able to file for. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. It usually takes three to five years to fulfill this plan. When the time is up, you’re unsecured debts will be discharged. Stay mindful that should you for any reason miss even one plan payment, your whole case is going to get thrown out by the court system.
If you are making more money than you owe, bankruptcy should not even be an option. Although bankruptcy may feel like a simple method of getting out of your large debt, it leaves a permanent mark on your credit history for up to 10 years.
If you meet certain requirements, you may be able to get a lower monthly payment on your financed vehicle. Chapter 7 bankruptcy is one of the most common and effective. There are qualifications, such as the loan being high interest and a good work record for this option.
This article outlined a few different types of personal bankruptcy. These different choices can be intimidating, but they really aren’t once you get a handle on them. Take time to think about what you have read here. That way, you’ll make the best decisions.
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