You do not have to keep worrying if your debts are making you think about filing for bankruptcy. The Internet gives you access to everything you need to know about bankruptcy before you make your decision. Read the information provided here to see if bankruptcy can be avoided.
One of the best ways to learn more about the bankruptcy process is to hit the Internet and look up reputable bankruptcy websites. The US DoJ along with other private and nonprofit organizations all have insightful knowledge. You need to spend some time gathering valuable information so you can file your bankruptcy with confidence.
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. Keep in mind that if the tax debt is eligible to be discharged, then the credit card debt is also dischargeable. Just because your credit card could be discharged in bankruptcy does not mean you should use it.
When it gets time to think about bankruptcy, avoid using your retirement or savings to pay off the creditors or even make attempts to settle the debt. Do not tap retirement accounts unless there is 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.
Do not hesitate to remind your lawyer of any details regarding your case. Inaccurate or incomplete information can lead to your petition being denied. It’s your financial future that is in his hands; don’t hesitate to speak up.
Determine which assets won’t be seized before filing for bankruptcy. The kinds of assets which may be exempted during bankruptcy proceedings are listed in the Bankruptcy Code. It is important to be aware of this list so you will know what assets are saved. While it might not be possible to protect a particularly beloved possession, at least you will know in advance whether or not you risk losing it.
You should be able to meet with a specialized lawyer for free to ask your questions. The majority of lawyers offer their first consult at no cost, so ensure you meet with several to find one that you like. The lawyer who properly answers your questions is the one you should hire. You do not have to give them your decision right after the consultation. This offers you the opportunity to speak with other attorneys.
Don’t hide assets or liabilities when filing for bankruptcy. 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.
Do not despair, as it’s not the end of the world. Bankruptcy might help you get back things you thought you’d lost and had repossessed, such as electronics, vehicles and jewelry. If the property you own has been repossessed under 90 days before the bankruptcy filing, you may still be able to get it back. A lawyer will be able to assist you with filing the paperwork to get the items back.
A free consultation is standard for bankruptcy attorneys, so shop around before settling on one. Meet with the actual lawyer, not a paralegal or assistant, as they’re not allowed to give out legal advice. Taking the time to compare lawyers will ensure that you get a person that you can be yourself around.
Your most important concern is to protect your home. Filing for bankruptcy will not always result in losing your home. You can still keep your home, it just depends on your specific situation and the value of your home. There are other options such as a homestead exemption which offers you a chance to remain in your home, depending on whether or not you meed certain financial conditions.
Chapter 13
Consider filing using chapter 13 bankruptcy. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. When you file for Chapter 13, you can use the debt consolidation plan to repay your debts, while retaining your real estate and your personal property. Lasting anywhere from three to five years, this plan will allow you to be discharged from unsecured debt. However, if you were to miss a payment, the court would dismiss your case right away.
Look at all the alternatives to bankruptcy before filing. Talk with a bankruptcy lawyer and ask about alternatives, such as debt consolidation or negotiating with creditors. You can apply for a modification of your mortgage if your home is going into foreclosure. There are a lot of ways that your lender can assist you, such as reducing interest rates, eliminating late fees, or extending the term of your loan. Remember that creditors desire to get paid and usually debt repayments are often preferable when dealing with bankrupt debtors.
Your trustee may be able to help you secure an auto loan or get a mortgage even though you have filed Chapter 13. There are extra hoops to jump through. You need to speak with your trustee so that you can be approved for a new loan. When meeting with the trustee, bring a budget which shows that you will be able to afford the payment on the loan you are trying to get. You will also need to have a good reason why you need the item.
If you devise a plan, then you can make the situation much better. Any steps you take that give you additional time to address your debts are good ones. Just be certain you are taking the right steps to prevent yourself from filing bankruptcy. Plan your future out now.