In order to file a bankruptcy claim, you will run into more than a couple of complicated hurdles to jump. There are different kinds of bankruptcy you can file, and the kind you select depends on your individual financial picture and what types of debt you have. It is essential to learn as much as you can about bankruptcy before choosing to file. Here are a few wise tips to help you in your decision.
Be sure everything is clear to you about personal bankruptcy via looking at websites on the subject. Many sites, including the U.S. DOJ, along with a number of other bankruptcy institutes and attorneys specializing in bankruptcy can give you invaluable information. You will find that the process of filing for personal bankruptcy is easier and less of a hassle with the more information on the subject you gather ahead of time.
Credit Cards
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. In most states, this debt won’t be discharged, and you could end up owing the IRS a whole lot more. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. So, there’s no reason to make use of a credit cards if it will not be discharged in bankruptcy.
Make sure you are always providing honest documentation whenever you have to file for personal bankruptcy. You may be tempted to try to hide income and personal assets from discovery, but doing so often leads to major complications, monetary penalties and the possibility that your case will be thrown out of court.
You should never give up. Many times you can get repossess property back once bankruptcy has been filed. If the repossession occurred within 90 days from your filing date, it is possible that some of your property can be returned to you. Get help from your lawyer to file a petition so you can get your items back.
Do some research about laws and legislation before filing. Laws are subject to change, and it’s important that you’re educating yourself about current code only. To know what these changes are, go to your state’s website or contact the legislative offices.
Take steps to ensure your home is protected. Filing for bankruptcy does not mean you have to lose your home. Depending on whether the value of your home has decreased or if you have a second mortgage on the home, you may end up keeping it. You may also want to check out the homestead exemption because it may allow you to keep your home.
Chapter 13
Find out more about Chapter 13. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. You can secure your home under Chapter 13 and pay your debts with a payment plan. This repayment period usually lasts from three to five years. If you make your payments faithfully during that time, any remaining unsecured debt will be eliminated. Remember that you must make every payment. Missing even one could cause the court to dismiss your case.
When you file for bankruptcy, you should be very aware of your rights. Certain unscrupulous creditors will try to convince you that certain debts can’t be discharged in bankruptcy. There are not many debts that can not be bankrupted, student loans and child support for example. 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.
Don’t let shame consume you during the bankruptcy process. For many people, bankruptcy is a source of guilt and feelings of worthlessness. Try not to give in to these feelings, as they are of no help to you and they can affect your emotional health. A good way to deal with bankruptcy is to make sure that you keep a stiff upper lip.
Learn about the personal bankruptcy rules before petitioning. There are several pitfalls with personal bankruptcy that can make your case harder to handle. You might find that your case become dismissed because of a mistake. Make sure you are fully aware about personal bankruptcy before you make any final decisions. Doing this will make the process easier.
Now you know that filing for bankruptcy is something to be considered before going through with it. If you know what makes sense for you, you can work with an experienced bankruptcy lawyer and get ready to experience a clean financial slate.
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