Just thinking of filing for bankruptcy is more than enough to strike substantial fear into anyone’s heart. A lot of families are having trouble containing their debt and managing their expenses. If it frightens you, or if you are dealing with this nightmare now, the following information is required reading.
Don’t use credit cards to pay off your taxes if you’re going to file bankruptcy. In a lot of places, you cannot get this debt discharged, and you may still owe money to the IRS. This means using a credit card is not necessary, since bankruptcy will discharge it.
Always be honest with the information you give about your bankruptcy petition.
Learn all the latest laws prior to deciding to file for bankruptcy. Bankruptcy law has changed substantially in recent years, and you need to be aware of any changes so your bankruptcy can be properly filed. Your state’s legislative offices or website will have the information about these changes.
Be sure you can differentiate between Chapter 7 and Chapter 13 differ. Chapter 7 bankruptcy completely wipes out all outstanding debts. Your ties with all creditors will cease to exist. Chapter 13 bankruptcy allows for a payment plan that takes 60 months to work with until the debts go away.
Bankruptcy filings do not necessarily mean that you have to end in the loss of your home. Depending on whether the value of your home has decreased or if you have a second mortgage on the home, you may very well end up being able to keep your home. You may also want to check into homestead exemption because it may allow you to keep your home.
Understand the differences between a Chapter 7 and Chapter 13 bankruptcy. Take the time to find out about each one online, and then figure out which one will be best for your particular situation. If anything you see is unclear or doesn’t make sense, go over it with your lawyer so that you can make the best decision.
Consider filing for Chapter 13 bankruptcy for your filing. If you have a regular source of income and less than $250,000 and you have consistent income, Chapter 13 will be available to you. This plan normally lasts from three to five years, your unsecured debt will be discharged. Keep in mind that even missing one payment can be enough for your case.
It is possible to get an auto loan or mortgage during the repayment period for Chapter 13 case remains active.You will need to secure the trustee’s approval for any new loan. You need to show them why and prove that you can handle paying back the new loan. You will also need to be able to explain why it is necessary for you to take out the purchase is necessary.
Make sure you act at the appropriate time. Timing can be critical when it comes to personal bankruptcy filings. For some debtors, immediate filing is ideal, whereas in other cases, waiting a while is best. Speak to a bankruptcy lawyer to see when is the ideal timing is for your personal situation.
It is not uncommon for bankruptcies to elicit feelings of guilt, guilty or ashamed. These feelings do not help you and cause psychological problems.
Bankruptcy is a host of stress. To help yourself deal with this stressful situation, find a highly qualified attorney. Don’t let cost to determine who you hire. It is not necessary to hire a lawyer of high quality. Make sure people who have experienced bankruptcy give your circle of friends and the BBB. You might want to visit a court hearing to see how an attorney handles his case.
Don’t wait until it is too late to file bankruptcy. It is a big mistake to avoid financial problems, hoping they will go away on their own. It doesn’t take long for debt to become unmanageable, which could lead to loss of assets or wages. As soon as you’ve decided that you no longer have a handle on your debts, seek the advice of a good bankruptcy attorney.
People who are afraid of bankruptcy have good cause to be; the process can be scary and stressful. Even though you feared bankruptcy before, this article can rid you of that fear. The advice in this article will make the idea of filing for bankruptcy a little easier for both you and your family.