A lot of people today have sunk into debt. They are harassed by collection agencies and creditors and their finances under control. If you have been going through this for a while, personal bankruptcy may be an option. Continue reading this article so you can figure out if bankruptcy is the right option for you.
Don’t use credit cards to pay your taxes before filing for bankruptcy. In many parts of the country, the debt cannot be discharged, and you could be left owing a significant amount to the IRS. This means using a credit card is not necessary, since bankruptcy will discharge it.
You might experience trouble with getting unsecured credit card or line after filing for bankruptcy. If you are in this situation, think about applying for a couple of secured credit cards. This will prove that you want to improve your credit history while minimizing the bank’s risk. After a time, you may be able to get unsecured credit again.
The federal statutes covering bankruptcy can tell you exactly which assets that are excluded from forfeiture to pay off creditors. If you don’t read it, you might be blindsided when a possession that is important to you is taken to repay creditors.
Filing a bankruptcy petition might facilitate the return of your property, like your car, electronics and jewelry items. You may be able to recover repossessed property if they have been taken away from you within 90 days before you filed for bankruptcy. Speak with a lawyer who will be able to help you with guidance for the entire thing.
Be sure to hire an attorney before you embark upon filing for bankruptcy. You might not know everything you need to know in order to have a successful outcome of the various aspects to filing for bankruptcy.A bankruptcy can make sure you are following the correct procedures in your filing.
Be sure you know how Chapter 7 and Chapter 13 bankruptcy. Chapter 7 bankruptcy is intended to wipe out your debt. Your former ties with all creditors will cease to exist. Chapter 13 bankruptcy though will make you work out a five year repayment plan that takes 60 months to work with until the debts go away.
Make sure that you meet with an actual lawyer and not an assistant or paralegal, because it is illegal for these people to give legal advice.
Consider filing a Chapter 13 bankruptcy for your filing. If you are receiving money on a regular basis and your unsecured debt is under $250,000 and have a consistent income source, you can file for Chapter 13 bankruptcy. 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.
As you now know, there is help out there for you if you want to file for bankruptcy. If you deal with your stress in a positive way and make level-headed decisions, your bankruptcy filing will be a step in the right direction for a renewed financial future.