Bankruptcy can be tough. When you’re in a bind, financially, you may find that you have limited options. Nonetheless, it is possible for you to continue getting the things you need (e.g. a home loan or an automobile loan) even if you have a very low credit score.
You can find a wealth of information concerning personal bankruptcy by searching for websites which offer information about it. The United States Department of Justice and American Bankruptcy Institute are two such places to look. Knowing as much as possible about bankruptcy gives you an advantage and will help you make the best decision possible.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS. One thing that you should remember is that if your tax is dischargable, your debt will also be dischargeable. Therefore, you have no reason for use of a credit card, if the amount is to be discharged in due process of the bankruptcy.
Never shirk on the truth in your petition for bankruptcy. Don’t hide income or assets from your lawyer or the bankruptcy trustee or you may find yourself in legal trouble.
Determine which assets won’t be seized before filing for bankruptcy. The Bankruptcy Code lists the kinds of assets which are exempted when it comes to the bankruptcy process. It is important that you read this list before filing for bankruptcy, so that can find out whether or not your most prized possessions will be seized. If you don’t heed that advice, you might find yourself getting surprised when your favorite things are repossessed.
It is important to understand your rights when filing bankruptcy. If you file for bankruptcy, you might be able to reclaim certain property that has been repossessed, such as your car, electronics or jewelry. If you have any property in repossession that was taken less than three months before filing for bankruptcy, then there are good odds that you can get your property back. Speak with a lawyer that will provide you with guidance for the entire thing.
If you are meeting with a lawyer to discuss bankruptcy, the initial consultation should be free so ask every question you have. Almost all lawyers will give a free consultation, so meet with more than one before making a decision on whom to hire. Only choose an attorney once all your concerns are answered to your satisfaction. You need not decide right away. Consulting with several attorneys will also help you find someone you trust.
Most bankruptcy lawyers offer a free consultation, so meet with several before you decide on one. Meet with the actual lawyer, not a paralegal or assistant, as they’re not allowed to give out legal advice. Shopping around for a lawyer can help you find someone with whom you feel comfortable.
It is possible to keep your home. Bankruptcy doesn’t always mean you’ll lose your home. It may be possible to keep your home if the value has depreciated, or there is a second mortgage. You can also investigate your state’s homestead exemption, an option that might enable you to keep your home if certain financial requirements are met.
Chapter 13 Bankruptcy
It is imperative that you retain an experienced attorney if you are planning to file bankruptcy. Having a lawyer on your side is the best way to avoid mistakes and bad decisions. Personal bankruptcy attorneys can help make sure everything is done properly.
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. Not only can you repay your debts through consolidation, personal property can be kept, as well as real estate. That plan lasts approximately three to five years, and then you are discharged from unsecured debt. Just ensure that you take necessary precautions, as missing one payment can result in the court dismissing your case.
No matter if you’ve filed for bankruptcy, this will not forever limit your life. When you show good faith and you’re repaying your debts, this effort will be noticed in a positive light by the creditors. Begin saving today, and you’ll surely notice the difference in others’ perception of you when you apply for an important loan such as a home or car loan.