If your debt has driven you to the brink of bankruptcy and you don’t know what to do, stop worrying. The Internet, and this article in particular, is full of great advice for navigating the complexities of bankruptcy. You may be able to avoid filing for personal bankruptcy by following the tips presented here.
If you are thinking about paying off your tax obligations with a credit card and then filing bankruptcy, think again. Most places will not consider the debt dischargeable, meaning you will have to pay the IRS a lot of money. Keep in mind that if the tax debt is eligible to be discharged, then the credit card debt is also dischargeable. So, there’s no reason to make use of a credit cards if it will not be discharged in bankruptcy.
The most important tip a person filing for personal bankruptcy can remember and follow is to be completely transparent in all dealings. To avoid problems, penalties and future re-filing bans, resist the urge to hide documentation or assets.
When choosing a bankruptcy lawyer, your best option is to find someone who is recommended by someone you know versus someone who you find online or in the phone book. Companies are constantly popping up, claiming to help, yet only seek to profit from your misery. In ensuring that your bankruptcy is as simple as possible, trusting your attorney makes a big difference.
Research what assets are exempt from seizure before you decide to declare bankruptcy. Bankruptcy exemptions are properties may not be seized during bankruptcy. Be sure that you study this list. Make yourself aware of any assets you have that could be seized. If you do not read this list, you could be in for some nasty surprises in the future, if some of your most prized possessions are seized.
Be honest when filing for bankruptcy. Don’t hide liabilities or assets, as they’ll come back and haunt you. The lawyer representing you when you file needs to have full knowledge of your financial situation. Bankruptcy can be a chance to simplify your finances, but any schemes you employ to conceal the truth can ruin that chance for you.
Never give up. Once bankruptcy has been filed, you may be able to regain possession of items such as electronic goods or cars that were taken away from you. If you have property repossessed less than ninety days prior to filing your bankruptcy, you may be able to get it back. Interview and research attorneys before choosing one to help you with your bankruptcy.
60 Month Period
The two main kinds of bankruptcy are Chapter 7 and Chapter 13. Make sure you understand them so you know what is best for you. If Chapter 7 is what you file, your debts will get eliminated entirely. Your former ties with creditors will cease to exist. With a chapter 13 bankruptcy, a 60 month period of time will be established in which you will repay the as much of your debt as possible. Following the 60 month period of time, the remainder of your debt will be excused. It is worth while to take your time to research both types of bankruptcy to decide which option works best for you, and your financial situation.
Proper planning can put you in the right place. If you can buy yourself, time then do it; the more the better. It is important that you are moving in the right direction away from bankruptcy filing. Start planning things today and start looking toward the future.