Tips On How To File Personal Bankruptcy
If you have a lot of debt and are about to file for bankruptcy, then don’t fret anymore. There is a lot of helpful advice on the Internet that will show you how to avoid this terrible bankruptcy situation. Continue on for some excellent tips that will help you avoid filing for bankruptcy.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. In many parts of the country, you cannot get this debt discharged, and in the end you will be left owing the IRS a big sum of money. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. So, there’s no reason to make use of a credit cards if it will not be discharged in bankruptcy.
Prior to putting in the bankruptcy paperwork, determine what assets are protected from seizure. The Bankruptcy Code includes a list of the types of assets that are exempt from the bankruptcy process. Be sure that you study this list. Make yourself aware of any assets you have that could be seized. If you don’t heed that advice, you might find yourself getting surprised when your favorite things are repossessed.
If you’re concerned about the details of keeping your car, try to ask your attorney about details regarding lowering your monthly payments. In many cases, you can reduce your payment by filing a Chapter 7 petition. The vehicle must have been obtained more than 90 days before filing and be a loan with high interest. You must also have consistent work history.
Be aware of recent changes, if any, in the bankruptcy code. If you want to file for bankruptcy successfully, it’s important to review the latest applicable laws. They tend to change frequently. All of these changes will be addressed on the state’s legislative site. You can also contact them directly by phone or office visit.
As mentioned, you are not alone in needing to file for bankruptcy. The difference is, you are arming yourself with good knowledge with articles like this. Utilize the tips you learned today and ensure that there is no rough spots when filing for bankruptcy.