Filing for bankruptcy is still an option for anyone who has had their possessions repossessed by the IRS.Bankruptcy can wreak havoc on credit, but is often unavoidable. Read this article to learn more when it comes to filing bankruptcy and the consequences from doing so.
Have a good look around the Internet to see what information is relevant to you regarding bankruptcy. The United States Department of Justice and American Bankruptcy Institute are both sites that provide free advice. The more information you have, the more confident you can be about any decision you make and you will know that you are doing the best thing possible for your situation.
If this sounds like you, it is a good thing to familiarize yourself with the laws that apply in your area. Each state has its own bankruptcy laws. For example, some states protect you from losing your home in a bankruptcy, but not in others. You should be familiar with the laws before filing.
You can find a wealth of information concerning personal bankruptcy resources available online to educate yourself thoroughly before you begin the process. Department of Justice and National Association for Consumer Bankruptcy Attorneys provide free advice.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. Most of the time, you cannot discharge this debt. As a result, you will owe the IRS a lot of money. If the tax can be discharged, so can the debt. It is pointless to use credit cards if they can be discharged.
Don’t be afraid to remind your attorney of certain details with your case. You should not take for granted that your lawyer will remember every important detail without a reminder. Speak up, as this is your future we are talking about here.
If a personal recommendation comes your way, get a word-of-mouth referral for a lawyer. There are way too many people ready to take advantage of financially-strapped individuals, so always work with someone that is trustworthy.
Do some research to find out which assets you could lose by filing for personal bankruptcy. The Bankruptcy Code contains a list of various assets that are excluded from bankruptcy. Make sure that you carefully look over this list prior to filing to discover if your valuable assets will be seized. If you aren’t aware of this, you could lose some assets that you value.
The federal statutes covering bankruptcy can tell you exactly which assets are excluded from forfeiture to pay off creditors. If you don’t read it, you could be setting yourself up for a lot of stress when your most important possessions are taken in the bankruptcy.
Filing for personal bankruptcy may possibly enable you to reclaim your personal property that have been repossessed, like your car, electronics or other items that may have been repossessed. You may be able to get your possessions back if the repossession occurred fewer than 90 days ago. Speak to a lawyer who will provide you file the necessary paperwork.
No good will come of trying to conceal your assets or your liabilities in the bankruptcy process; you want to be scrupulously honest when you declare bankruptcy. Whomever you use to file with must know everything there is to know about your finances, both good and bad. Don’t hold anything back and formulate a smart strategy to deal with the reality you are facing.
Don’t pay for the consultation and ask him or her anything you want to know. Most attorneys offer free consultations, so consult with a few before settling on one. Only choose a decision after you feel like your concerns and questions were answered. You need not have to give them your decision right away. You can take as much time for consulting with other lawyers.
Before you decide to declare bankruptcy, be sure you’ve weighed other options. For example, if your debt is small, you might be better off if you went through consumer credit counseling. You may have luck negotiating lower payments by dealing directly with creditors, but make sure that you get written records of any debt modifications to which you agree.
You should never pay for your first consultation with a bankruptcy attorney. Make the most of this free consultation by asking lots of questions. Most lawyers will meet with you for free and give you helpful advice, so meet with several. Don’t hire an attorney who fails to address all your concerns and questions. It is not necessary to decide immediately after your consultation. After your consultations, do some additional research on each attorney you consider qualified for the job.
Make sure you meet with a licensed attorney rather than a paralegal or assistant, as these people are not allowed to provide legal advice.
Understand the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Take the time to learn about them extensively, and look at the advantages and disadvantages of each.If you have trouble understanding the wealth of information, talk to your attorney before making that serious decision.
It is possible to keep your home. Filing for bankruptcy doesn’t automatically involve losing your home. You might be able to keep your home, contingent on certain factors, such as your home decreasing in value or having a second mortgage. If you meet certain criteria, you may be able to retain ownership of your home even after filing for bankruptcy.
Chapter 13 Bankruptcy
Consider filing a Chapter 13 bankruptcy for your filing. If your total debt is under $250,000 and have a consistent income source, you may be able to file 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.
Be sure you know what the difference between Chapter 13 and Chapter 7 bankruptcy is. Read up on the topic and familiarize yourself with the benefits and drawbacks of both variations. Engage your attorney in a conversation about each type, and ask him to answer any questions you may have before deciding which kind is right for you.
As your read at the start of this article, there is always the option of personal bankruptcy. However, it must not be your first choice due to it causing complications on your credit. As long as you’re properly informed about which moves to take and when, you should have little trouble navigating the process and ultimately restructuring your credit.