Good Advice On Why You Should Avoid Bankruptcy
Are you having financial problems and think bankruptcy is the lone choice you have? Understand that you are not the only one. Some people have turned to bankruptcy, as it is their only option for getting rid of a bad financial situation. This article can help you make sure the process starts properly.
Don’t feel bad if you need to remind your attorney about any specifics of your case. Don’t assume that they will recall every detail that you go over with them without a friendly reminder. It is in your best interest to speak out. You are in control of the outcome of your bankruptcy.
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. If the tax can be discharged, so can the debt. Therefore, you should not pull your credit card out for purchases if it is just going to be discharged during the bankruptcy.
Before you file for personal bankruptcy, be sure that you are cognizant of all current laws. Bankruptcy laws constantly change and it’s crucial you know about them so you the process of filing for bankruptcy goes smoothly. To learn about these changes, try contacting your state’s legislation office or checking their website.
Chapter 13 bankruptcy might be a good option, so don’t overlook it. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. Not only can you repay your debts through consolidation, personal property can be kept, as well as real estate. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. However, if you miss even one payment, the court will dismiss your entire case.
In conclusion, you aren’t alone when it comes to filing for bankruptcy. But, unlike those people, you are more educated, since you have read this article. Use the information here to help see you through a smooth bankruptcy.