Filing for personal bankruptcy protection is an important strategy for people that have had assets, such as their vehicle, seized by the IRS. Of course your credit will be hurt when you file for bankruptcy, but sometimes this is your best choice. Pay attention to what this article is teaching you about bankruptcies and their pitfalls.
Be sure to bring anything up repeatedly if you are unsure if your lawyer is focusing on it. Never assume that they can remember all details without reminders. All information submitted to the court with your signature needs to be double checked.
If you are thinking about paying off your tax obligations with a credit card and then filing bankruptcy, think again. In many parts of the country, you cannot get this debt discharged, and in the end you will be left owing the IRS a big sum of money. Transferring the debt to another medium (e.g. a credit card) won’t magically make a tax debt discharagable, either. Because of this, transferring the debt to your credit card is pointless.
Be as honest as you possibly can when filing for bankruptcy; hiding liabilities or assets will only hurt you in the long run. Your attorney and trustee should be privy to all information about your finances. Telling the truth will allow you reach a solution that is feasible, given your current situation.
It is imperative that you retain an experienced attorney if you are planning to file bankruptcy. Bankruptcy can be highly confusing and stressful, and you need an unbiased partner who can help simplify the process. Talk to a bankruptcy lawyer, they can help clarify anything that you might have confusion with.
Before pulling the trigger on bankruptcy, be sure that other solutions aren’t more appropriate for your case. Those with smaller debts may find use in a program for consumer credit counseling. You could even negotiate for lower payments. However, you should ensure that you always obtain a written record of all the changes to your debt that you’ve agreed to.
Be brutally honest when you file for bankruptcy, as hiding assets or liabilities, will only come back to haunt you. The professional that helps you file for bankruptcy has to have a complete and accurate picture of your financial condition. Telling the truth will allow you reach a solution that is feasible, given your current situation.
Unsecured Debt
Look into filing Chapter 13 bankruptcy. With a regular income and unsecured debt below $250,000, Chapter 13 is probably best for you. The benefit of this plan is that you retain personal belongings and private real estate and your debts are repaid by an organized payment plan. That plan lasts approximately three to five years, and then you are discharged from unsecured debt. 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.
As was stated before, the option of filing for personal bankruptcy should be kept open. However, you may wish to avoid it because of what it can do to your credit. Knowing how to best go through the bankruptcy process can reduce one’s troubles in the long run and make it easier to retain one’s possessions.
Talk to a lot of different bankruptcy lawyers; most of them will give you a free consultation. Ask to speak with the licensed attorney and not a representative, who can not offer legitimate legal counsel. Taking the time to compare lawyers will ensure that you get a person that you can be yourself around.