Going Bankrupt? Solid Advice You Need Right Now

by Terrence K. Magee on March 16, 2014

The economy today is in very bad shape right now. The difficult economic circumstances have caused increasing levels of a tough economy leads to people losing jobs and falling into uncontrollable debt. Debts can lead to bankruptcy, an outcome nobody ever wants.

Don’t use a credit cards to pay your taxes before filing for bankruptcy. In most states, the debt cannot be discharged, and in the end you will be left owing the IRS a big sum of money. This means using a credit card is not necessary, since bankruptcy will discharge it.

Never shirk on the truth in your bankruptcy petition.

The Bankruptcy Code contains a list of various assets that are excluded from being affected by bankruptcy. If you fail to go over this list, you might find yourself getting surprised when your favorite things are repossessed.

The professional that helps you choose to file for bankruptcy has to have a complete and accurate picture of your financial condition.

Don’t pay for the consultation with a lawyer who practices bankruptcy law; ask him or her anything you want to know.Most lawyers provide a consultation for free, so meet with a number of them before you retain one. Only make a decision after you have met with several attorneys and all of your questions were answered. You don’t have to make your decision immediately after this consultation. This offers you the opportunity to speak with numerous lawyers.

Chapter 7

Be certain that you know how Chapter 7 and Chapter 13 bankruptcy. Chapter 7 bankruptcy is intended to wipe out all debts. All of your financial ties to the people you to creditors will disappear. Chapter 13 bankruptcy allows for a payment plan to eliminate all your debts.

Understand the differences between a Chapter 7 and a Chapter 13 bankruptcy. Take the time to learn about them extensively, and look at the advantages and disadvantages of each.If something doesn’t make sense to you, go over it again with your attorney before making the final filing decision.

Consider filing for Chapter 13 bankruptcy is an option. If you have a regular source of income and less than $250,000, 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.

The whole process for bankruptcy is hard. Lots of people decide they should hide from everyone else until this is all done. This is not recommended because staying alone could cause serious problems with depression.So, it is critical that you spend what quality hours you can with loved ones, regardless of the current financial situation.

As stated from the above article, the economy right now not in the best of shape and lots of people are hurting financially. If you are unemployed, or lack a regular income, you can still take steps to avoid having to file for bankruptcy. Now you know all the options available to avoid bankruptcy, if at all possible. Let the force be with you.

The purpose of this article is to give you a concise overview about Chapter 7 Bankruptcy Overview. However, you should understand that you will still have to teach yourself a lot more on the subject. Keep learning and never stop. The more you learn, the more successful you will be.

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