The whole process of filing bankruptcy is complicated. There is not simply one type of bankruptcy, so the choice you make will be determined by your debts and what finances you have. It’s imperative that you learn everything you can about the process before you even think about filing. This information may point you in the right direction.
You can find a wealth of information concerning personal bankruptcy by searching for websites which offer information about it. The United States Check out the Bankruptcy Institute site and do some research about consumer’s rights. By being well armed with the correct knowledge, you can be certain of the decision that you have made. Additionally, you will understand the processes necessary to conduct your personal bankruptcy matters in a smooth manner.
Millions of Americans file for bankruptcy each year because they can not pay their bills. Study the laws in you state to learn what you need to do and what your options are. You will find that each state has their own bankruptcy laws. In certain states if you file for bankruptcy your home remains protected, but the laws vary depending on where you reside. It is best to become familiar with your state’s laws regarding bankruptcy before you take the steps to file.
The best way to build your credit up after a bankruptcy is making all your payments on time. Since it is important that you work to rebuild your credit, you should instead think about applying for a secured card. By doing this, you will be letting people know that you want to fix your credit score. After a certain time, you will then be able to acquire credit cards that are unsecured.
Talk to a lot of different bankruptcy lawyers; most of them will give you a free consultation. It is important to meet with the actual lawyer, because paralegals or assistants cannot give you legal advice. Considering several different lawyers can help find someone to trust.
Learn about teh differences between Chapter 13 and Chapter 7 bankruptcy. By researching each type, you can begin to understand which method is right for you. If you’re really not sure how this all works after your research, meet with your lawyer and ask them prior to making a decision.
Do not even think about paying your taxes with credit and petitioning for bankruptcy right after. 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. One thing that you should remember is that if your tax is dischargable, your debt will also be dischargeable. Thus, it doesn’t make sense to use a credit card when it is going to be discharged when you file for bankruptcy.
Chapter 13 Bankruptcy
Research Chapter 13 bankruptcy, and see if it might be right for you. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. Such plans generally take between 3 and 5 years to complete, at which point. a discharge will be granted. However, if you were to miss a payment, the court would dismiss your case right away.
Obviously you see the necessity for proper planning and decision-making in before you file. If you decide that it makes sens for your financial situation, you can benefit from working with an attorney who is experienced with personal bankruptcy, so that you can make the experience the beginning of your new, clean financial slate.
No good will come of trying to conceal your assets or your liabilities in the bankruptcy process; you want to be scrupulously honest when you declare bankruptcy. Your attorney and trustee should be privy to all information about your finances. Do not hold back anything, and form a sound plan to make peace with your reality.