If you were unfortunate enough to have your property repossessed by the tax man, you should probably consider bankruptcy. There are times when bankruptcy is the last option left, even if it substantially damages your credit score. Continue reading for more information about how and why to file for bankruptcy.
As bankruptcy appears on the horizon, don't take your savings or retirement accounts to try to pay off all your bills. Retirement accounts should never be accessed unless all other options have been exhausted. You may need to use some of your savings; however, you should not use all of your savings. Remember that you must safeguard your future financial security.
One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. Resisting the temptation to hide income or valuable assets from the bankruptcy trustee is a smart way to avoid potential complications, penalties, and the possibility of being barred from re-filing in the future.
Don't be reluctant to remind your lawyer about specific details he may not remember. Never assume that they can remember all details without reminders. Remember that you're the boss. You're paying your lawyer, so you should not be afraid to have your say. After all, the quality of your life hangs in the balance.
There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. Learn the benefits and drawbacks of each type before deciding which is right for you. If there is anything that you don't understand, go over it with your lawyer so that you can make the best decision.
Consider Chapter 13 bankruptcy for your filing. If you are receiving money on a regular basis and your unsecured debt is under $250,000, you may be able to file Chapter 13 bankruptcy. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. Such plans generally take between 3 and 5 years to complete, at which point. a discharge will be granted. Remember that if you even miss one payment that's due under this plan, the court could dismiss the whole case.
As stated previously in this guide, personal bankruptcy can always be an option. That said, you should think twice before filing, since it leaves a huge black mark on your credit. Don't sit back and let the process take control of you. Take control of the process by doing your research so that you don't lose more than you need to.
As bankruptcy appears on the horizon, don't take your savings or retirement accounts to try to pay off all your bills. Retirement accounts should never be accessed unless all other options have been exhausted. You may need to use some of your savings; however, you should not use all of your savings. Remember that you must safeguard your future financial security.
One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. Resisting the temptation to hide income or valuable assets from the bankruptcy trustee is a smart way to avoid potential complications, penalties, and the possibility of being barred from re-filing in the future.
Don't be reluctant to remind your lawyer about specific details he may not remember. Never assume that they can remember all details without reminders. Remember that you're the boss. You're paying your lawyer, so you should not be afraid to have your say. After all, the quality of your life hangs in the balance.
There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. Learn the benefits and drawbacks of each type before deciding which is right for you. If there is anything that you don't understand, go over it with your lawyer so that you can make the best decision.
Consider Chapter 13 bankruptcy for your filing. If you are receiving money on a regular basis and your unsecured debt is under $250,000, you may be able to file Chapter 13 bankruptcy. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. Such plans generally take between 3 and 5 years to complete, at which point. a discharge will be granted. Remember that if you even miss one payment that's due under this plan, the court could dismiss the whole case.
As stated previously in this guide, personal bankruptcy can always be an option. That said, you should think twice before filing, since it leaves a huge black mark on your credit. Don't sit back and let the process take control of you. Take control of the process by doing your research so that you don't lose more than you need to.
