Even people who have had assets, such as a car, seized for back tax debt can file for bankruptcy. Bankruptcy is a major life decision, but sometimes it can be the right choice. Keep reading to gain a better understanding of the bankruptcy process and of the ramifications of initiating a filing.
Ensure that you are providing genuine details when filing a bankruptcy petition, because honesty is the best policy when dealing with bankruptcy. 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.
Try to find a bankruptcy attorney who is personally recommended, rather than off the Internet, or out of the yellow pages. There are way too many people ready to take advantage of financially-strapped individuals, so you must ascertain that your attorney can be trusted.
Prior to filing for bankruptcy, research which assets will remain exempt from creditors. The Bankruptcy Code provides a list of all the different kinds of assets that you can exclude. 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 read this list, there is a chance that you might get nasty surprises when they take your things away.
Don’t throw in the towel. If you’ve had collateral, such as a car, electronics, or jewelry repossessed for non-payment, you might be able to recover the property when you file for bankruptcy. Any property repossessed within 90 days before filing bankruptcy, may be able to be returned to you. Consult with a lawyer who can advise you on what you need to do to file a petition.
Before you decide to file bankruptcy, be sure to check for any new laws that may apply to your case. These laws change regularly and you should stay up-to-date so you can make the best decisions. To learn about the changes, you should check out the website of your state’s legislation or you can call their office.
It is important to list all your assets and liabilities during the bankruptcy proceeding. Failure to do so will only cause you problems in the end. All of your financial information, be it positive or negative, must be disclosed to those in charge of filing your case. They need to know it all. Telling the truth will allow you reach a solution that is feasible, given your current situation.
Take steps to ensure your home is protected. There are many options available to help protect you from losing your home. Depending on if your home’s value has gone down or if it has a second mortgage, you might be able to keep it. You should also examine the possibility of taking a homestead exemption. This could apply if your income falls below the financial threshold.
Don’t file for bankruptcy the income that you get is bigger than your bills. While filing may seem simple and a way to get out of paying your debts, it does tremendous amounts of long-term harm to your credit report.
Consider all options before filing for bankruptcy. Find out if you can receive a reduced interest rate or altered repayment plan instead of bankruptcy filing. Loan modification can help you get out of foreclosure. Your lender can help you get current on your loan by offering you one of a number of modifications, such as getting rid of late charges, lowering interest rates, or extending the length of the loan. Making arrangements with the creditors to make reasonable payments towards you debt is a much better plan than bankruptcy because the lender simply wants the loan repaid.
Do not despair, as it’s not the end of the world. If you file for bankruptcy at the right time it could enable you to get your property back that you lost to repossession. There is a chance that you can get back your property if it has been less than ninety days since repossession. Speak with your attorney about filing the correct petition to get your property back.
In conclusion, the option of bankruptcy is always there. It should be said that all other avenues should be explored before damaging your credit with a bankruptcy. Knowing how to best go through the bankruptcy process can reduce one’s troubles in the long run and make it easier to retain one’s possessions.