Is your financial situation bad and you think the only solution is bankruptcy? Don’t feel bad, you are in good company. Countless individuals have determined that bankruptcy is the best way to alleviate their personal financial burdens. The article below discusses some information and tips to help you make sense of bankruptcy.
Be certain you are making the right choice before you file for bankruptcy. You can also avail yourself of other options, such as consumer credit counseling. Before you take the drastic move of filling for bankruptcy and living with a long lasting bad credit history, make sure to consider using another way that may not be as damaging to your credit.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. In most states, this is not dischargeable debt. Therefore, you will end up owing the IRS a lot of money. Keep in mind that if the tax debt is eligible to be discharged, then the credit card debt is also dischargeable. This means using a credit card is not necessary, when it will just be discharged.
Avoid exhausting your savings or emptying your retirement accounts to pay off creditors if you are considering filing for bankruptcy. Leave your retirement accounts untouched unless there is absolutely no other alternative. If you do have to dig into your savings, make sure that you leave enough to sustain you and your family for a couple of months.
Don’t avoid telling your lawyer specific details with your case. Inaccurate or incomplete information can lead to your petition being denied. This is your bankruptcy case, so do not be afraid to remind your lawyer of any key facts.
Prior to filing for bankruptcy, discover which assets cannot be seized. Certain assets, as listed in the local bankruptcy regulations, are immune from seizure during bankruptcy. Be sure that you study this list. Make yourself aware of any assets you have that could be seized. You wouldn’t want to unexpectedly lose any possessions you treasure.
Always be honest and forthright when it comes to your bankruptcy petition. It is vital that you disclose all information about your assets and income so there are no delays or penalties, such as a court barring you from filing again later in the future.
Before filing for bankruptcy, hire a qualified attorney. Bankruptcy is complicated, and having someone to help you navigate the process is crucial. Personal bankruptcy attorneys can help make sure everything is done properly.
Learn all the latest laws before you file bankruptcy. This area of law is in constant flux and it is imperative that you know where the law stands at the time you file for your bankruptcy. Review the state legislature web site or contact the state legislature office to keep abreast of changes in the law.
You could see about filing for Chapter 13 personal bankruptcy. If you posses a regular source when it comes to income, and you have less than $250,000 of unsecured debt, you could file using Chapter 13 bankruptcy. This allows you to keep possession of your real estate and property and repay your debt through a debt plan. Expect to make payments for up to 5 years before your unsecured debts are discharged. However, if you miss even one payment, the court will dismiss your entire case.
As mentioned previously, countless others have also experienced financial problems that have driven them to bankruptcy. Having read this article, you should feel better prepared to navigate this process. Use the tips in this article to ensure that the bankruptcy proceedings go smoothly.