The economy is in a dreadful state. The result of the dreadful economy is that many people are losing their jobs and personal debt. Debts can often lead to bankruptcy, which is never a good thing.
If this applies to you, you should know all about the laws that are in your state. Each state has their own laws regarding personal bankruptcy.For instance, the personal home is exempt from being touched in some states, while other states prohibit this. You should be familiar with the laws before filing for bankruptcy.
Do not even think about paying your taxes with credit cards that will be canceled when you file for bankruptcy. In a lot of places, this debt won't be discharged, and you may still owe money to the IRS. This makes using a credit care irrelevant, when it will just be discharged.
You have other options available like counseling for credit counselling services. Bankruptcy stays on your credit for a whole decade, so before you take such a large step, it is in your best interest to make use of them.
Never lie about anything in your petition for bankruptcy.
The person you file for bankruptcy has to have a complete and accurate picture of your financial condition.
Be sure to enlist the help of a lawyer if you're going to be filing for personal bankruptcy.You may not know everything you need to know in order to have a successful outcome of the various aspects to filing for bankruptcy. A specialized bankruptcy lawyer can advise you are handling your bankruptcy filing the right way.
Filing bankruptcy does not necessarily mean that you will end up losing 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 are still going to want to check out the homestead exemption either way just in case.
Chapter 13 Bankruptcy
Consider if Chapter 13 bankruptcy for your filing. If you owe an amount under $250,000 in unsecured debt, 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 missed payments will trigger dismissal of your whole case to get dismissed.
In order for this to succeed, your car loan must be one with high interest, have a higher interest loan for it as well as a consistent work history.
Before you decide to file for Chapter 7 bankruptcy, you should consider what your bankruptcy might have on others, which are usually close relatives and friends. However, if you had a co-debtor, which spell financial disaster for them.
Know your rights that you have as you file for bankruptcy.Some debtors will tell you that your debts can't be bankrupted. There are very few debts, such as child support or student loan debt, but be sure to know the details when dealing with debt collectors. If you are told by a debt collector that your debts are not dischargeable, then report that company to your local attorney general's office.
This will be viewed as fraud, and even after bankruptcy you can be forced to pay all of that money back to the credit card company.
Be careful on how you pay your debts before you file for bankruptcy. Bankruptcy laws generally don't cover situations which occurred within a short time frame prior to filing, a period that is extended to one year when it comes to payments made to family members.Read up on the rules before making financial decisions.
It is not uncommon for people to declare that they will never utilize credit cards after they declare bankruptcy. This may not be such a great idea because you still need to use credit to to help build credit. If you don't use your credit, then it will be very difficult to get your credit score high enough to be able to purchase things like a car or home in the future.
Write down everything that you have. This is going to be the foundation of your filing for bankruptcy, so make sure every debt you owe is on the list. Be sure to verify the amounts you owe by checking paperwork or calling your creditors. Don't do this task; the information needs to be correct for you to receive a discharge.
Once your bankruptcy is over, contact the three major credit reporting agencies and request copies of your report. Check to make sure your credit report accurately shows that your debts have been discharged and that closed accounts are also updated.
Chapter 13
If you realize that you do not qualify when it comes to the Homestead Exemption when you file for chapter 7 bankruptcy, you might be able to put place your mortgage in a Chapter 13 case. Some cases make it best for you to take your Chapter 7 case to a Chapter 13 one, dependent on what your attorney says.
Make sure you are always honest when filing your bankruptcy petition for bankruptcy. Any attempt to hide assets or debts can result in dismissal of your case.Disclose income or assets that are crucial to the proceedings. This will show the court that you are working to resolve the right decision.
You must provide them with information on lenders, hospitals, as well, and even money you owe friends and family.
Keep track of everything your attorney and what he is doing with your bankruptcy. You need to know what is happening and should not be scared to call someone and ask questions. Law offices that are busy have made mistakes. Contrary to popular opinion, attorneys are human too!
Even though our economy is slowly improving, many people still do not have jobs or decent wages. Just keep in mind that there are resources available to help you to avoid using bankruptcy, even if you do not have steady income. With any luck, you now see that options exist to help you steer clear of bankruptcy. Also, try to remember that tomorrow provides you with a fresh start.