When someone has to file for bankruptcy, it is never a good thing. Personal bankruptcy is a stressful and potentially embarrassing time for many people. Take heart, whether you choose to file bankruptcy or not, there are options available to help you get through your financial difficulties.
Many people find that they must file for bankruptcy protection because they have more debt than they can afford to repay. When you are faced with this issue, begin to familiarize yourself with your state’s laws. Different states use different laws when it comes to bankruptcy. For instance, your home might be protected in some states while you might lose it in others. You should be aware of local bankruptcy laws before filing.
Dischargeable Debt
Think twice if you have struck upon the idea of paying off your taxes by credit card and subsequently filing for personal bankruptcy. In most states, this is not dischargeable debt. Therefore, you will end up owing the IRS a lot of money. In most cases, you can use the adage that “a dischargeable tax is a dischargeable debt.” This makes using a credit care irrelevant, since bankruptcy will discharge it.
Never shirk on the truth in your petition for 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.
Do not be afraid to remind your attorney of important specifics of your case. Don’t assume that he will remember something you told him weeks ago. Remember that you’re the boss. You’re paying your lawyer, so you should not be afraid to have your say. After all, the quality of your life hangs in the balance.
Before filing a bankruptcy claim, make sure that your home is well protected. It isn’t inevitable that you will lose your house when you file for bankruptcy. You can still keep your home, it just depends on your specific situation and the value of your home. Another option is the homestead exemption that has certain income and financial requirements, but may also allow you to keep your home.
Chapter 13
Thing about filing a Chapter 13 bankruptcy. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. This allows you to keep possession of your real estate and property and repay your debt through a debt plan. The plan is usually for a term of three to five years, and a discharge will be granted at the end of that term. However, if you miss even one payment, the court will dismiss your entire case.
Do not forget to be around those you love. Going through a bankruptcy can be an excruciating experience. It is often overwhelming, and not quick. Some people may feel embarrassed or feel their self-esteem has taken a beating from it. Many people don’t feel like socializing during the ordeal. Do not isolate yourself or you will put yourself at risk for depression. For this reason, if you are undergoing personal bankruptcy proceedings, you must continue to live a normal life, spending time with your friends and relations.
Don’t forget to enjoy your life once your finances get fixed. It’s not uncommon to be overwhelmed by the filing process. If you let the stress get to you you may get depressed if you’re not doing the proper things to fight it. Life will get better after you finally get this situation over with.
Take action when the time is right. When it comes to filing for personal bankruptcy, timing is everything. There are times when you should file as soon as you can, but in some other situations it may be best to wait for the worst to be over. Speak with a bankruptcy lawyer to see when is the best time for you to file bankruptcy.
Financial Information
Every single piece of financial information you have needs to be studied and properly listed when filing a bankruptcy claim. If you leave off even one tiny detail, you may end up in some serious trouble, but at the least your claim will be denied. Make sure that you add very small sums, even if you believe that they aren’t important. This financial information may include income from side jobs, vehicles you own and loans you have not paid off.
As this solid advice demonstrates, there are other options besides bankruptcy. You can use what you know to find the road to return from the brink of bankruptcy. Start using what you learned today and see how much of a change you can make in your life, so that you do not have to harm your credit history.
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