Nobody thinks they will experience a bankruptcy filing during their lifetime. It is important to know what steps to take when your circumstances change and there’s nothing you can do about it. If you’re in this boat, read on for some helpful advice.
Millions of Americans file for bankruptcy each year because they can not pay their bills. If you have unmanageable debt, you need to familiarize yourself with regional bankruptcy laws. Each state has their own bankruptcy laws. For example, the personal home is exempt from being touched in some states, but not in others. Be aware of bankruptcy laws before filing your claim.
Always be honest when filling out paperwork. Withholding or lying about certain information can seriously worsen your financial situation. It could lead to being unable to file for bankruptcy or even legal trouble.
Don’t think that loading up your credit card with tax debt and then filing for bankruptcy is an answer either. Credit card debt is handled charge by charge during bankruptcy, and in most states, tax debt cannot be discharged through bankruptcy. Remember that if you can discharge the tax you can discharge the debt. Just because your credit card could be discharged in bankruptcy does not mean you should use it.
Do not attempt to conceal any assets when filing for bankruptcy because you may be penalized when they are discovered. The lawyer representing you when you file needs to have full knowledge of your financial situation. Keeping secrets or trying to outsmart everyone is not a wise move.
Avoid paying for a consultation with the bankruptcy attorney, but do ask many questions. Free consultations are standard practice among bankruptcy lawyers, so interview multiple candidates before making a final decision. Only make a decision after you have met with several attorneys and all of your concerns and questions have been addressed. You don’t need to decide what to do right away. Take the time to meet with a number of attorneys.
Keep working to improve your situation. Filing for personal bankruptcy may possibly enable you to reclaim your personal property that have been repossessed, like your car, electronics and jewelry items. You should be able to get your possessions back if they have been taken away from you within 90 days before you filed for bankruptcy. Consult with a lawyer that can walk you through the filing process.
Chapter 13 Bankruptcy
Be certain that you can differentiate between Chapter 7 and Chapter 13 bankruptcy. Under Chapter 7 type bankruptcy, all debts are forgiven. All the things that tie you to creditors will go away. If you file for Chapter 13 bankruptcy, however, you will enter into a 60 month repayment plan before your debts are completely dissolved. You have to know what differs between all of the kind of bankruptcy, so you know which is one is ideal for you.
Once you find it necessary to claim personal bankruptcy, you are going to need some good advice on the proper steps to take. The more knowledge you gain, the simpler the process becomes. With the tips from this article, you should be well-prepared to handle anything bankruptcy related.
Carefully consider filing for bankruptcy on loans that have a co-signer, especially if that co-signer is a business associate, close friend or relative. Once you complete a Chapter 7 bankruptcy, you will be free of any responsibility of debt, which could put all responsibility on someone close to you. However, the creditors could come after your co-signer and demand full payment for the debt.
Do you want to pay off your debt and be financially free for the first time in a long time? If so, the most important factor to make it happen is to change your mindset. Orrin Woodward is one of the foremost authority in creating strong foundations to build stronger, sustainable, and repeatable profitable enterprise from home. Orrin Woodward is also one of the co-founders of the LIFE business.