The economy is not in good shape. When there is a bad economy there are a lot of people losing their jobs and having problems with debt. Debts result in bankruptcy, which is never a good thing. If you or a loved one is considering bankruptcy, find out what to do about this situation by reading this article.
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, American Bankruptcy Institute, along with many other websites can provide you with the information you need. 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.
Generally bankruptcy is filed when a person is facing insurmountable debt. If you find yourself going through this, you should know all about the laws that are in your state. When it comes to bankruptcy, states have varying laws. In a few states, they see to it that your house is protected. This is not the case when it comes to other states. Do you research about legal ins and outs in your state before you begin the bankruptcy process.
You should avoid paying your taxes with credit cards and then immediately file for bankruptcy. Most states do not look at this debt as chargeable, and you could end up owing money to the IRS. One thing that you should remember is that if your tax is dischargable, your debt will also be dischargeable. So, there’s no reason to make use of a credit cards if it will not be discharged in bankruptcy.
Before you proceed with your personal bankruptcy case, review your decisions to be certain that the choice you are making is the right. Alternatives do exist, including 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.
It is important to remind your lawyer of any details that may be important to your case. It is wrong to assume that your lawyer will remember every word you ever utter! This is your bankruptcy and your future, so never be nervous about speaking your mind.
Be sure everything is clear to you about personal bankruptcy via looking at websites on the subject. The United States Department of Justice and American Bankruptcy Institute are two such places to look. As with everything in life, the more you know about filing a claim, the better off you’ll be. You can properly prepare when you know what you’re preparing for.
Find out what you exemptions are prior to filing bankruptcy. The kinds of assets which may be exempted during bankruptcy proceedings are listed in the Bankruptcy Code. It is vital that you know the things on this list prior to filing for bankruptcy, in order to determine which of your possessions will be taken away. If you don’t heed that advice, you might find yourself getting surprised when your favorite things are repossessed.
Protect your house. Just because you’re going bankrupt doesn’t mean that you also have to be homeless! It depends what your home value is and if there is a second mortgage, as all this stuff comes into play when determining if you can keep the home. Otherwise, look into the homestead exemption which may allow you to stay in your home if you meet financial threshold requirements.
Chapter 13 Bankruptcy
It can be difficult to obtain unsecured credit once you have filed for bankruptcy. Since it is important that you work to rebuild your credit, you should instead think about applying for a secured card. This demonstrates to creditors that you are making a good faith effort to repair your credit. Eventually, you could be able to obtain unsecured credit.
Consider filing using chapter 13 bankruptcy. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. Keep in mind that even missing one payment can be enough for your whole case to get dismissed.
Don’t file for bankruptcy the income that you get is bigger than your bills. The cost to your credit history far outweighs the simplicity of the easy-out bankruptcy. This is a hard pill to swallow for many.
Understand the rights you have as a bankruptcy filer. There are unscrupulous debt collectors who may suggest that your obligations cannot be included in a bankruptcy. Only a few debts are immune to bankruptcy. Taxes, student loans and child support would be the major ones. If the bill collector is trying to deceive you, then report that company to your local attorney general’s office.
Instead of getting your lawyer from the yellow pages or on the Internet, try your hardest to find one with a personal recommendation. There are way too many people ready to take advantage of financially-strapped individuals, so you must ascertain that your attorney can be trusted.
Before you file for bankruptcy, be sure you know how to properly repay your debts. Bankruptcy rules generally outlaw repayment of creditors in the 90 days leading up to a bankruptcy filing, a period that is extended to one year when it comes to payments made to family members. So, before you ultimately decide to file a claim, be sure that you understand the rules in place.
Don’t drag your feet figuring out if bankruptcy is the right thing to do. Your debt will only continue to mount as you waiver on the decision, difficult as it might be. Speaking with a professional quickly will provide you with the advice you need before things spiral out of control.
Even the economy is gradually getting better, many people still do not have a job. If you lack a steady job, you still may be able to prevent the need for a bankruptcy filing. This article should have given you some solid advice for staying afloat in tough times. Hopefully, you have the best luck.
Don’t ever pay a bankruptcy attorney for a consultation, and ask a lot of questions. Most lawyers offer free consultations, so talk to a few before making your decision. Don’t hire an attorney who fails to address all your concerns and questions. There is no need to feel rushed to decide to file after you talk with your bankruptcy lawyer. Be sure to talk with a number of lawyers, and compare the information you receive.