On The Road To A Personal Bankruptcy Discharge

by Terrence K. Magee on August 27, 2014

Bankruptcy is a decision and should be thoroughly thought about. Learn everything you can beforehand.

Don’t use credit cards to pay your taxes before filing for bankruptcy. In a lot of places, this debt will not be dischargeable, 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.

Always be honest when it comes to your bankruptcy petition.

The professional that helps you file with needs to know both the good and accurate picture of your financial condition.

Chapter 7

Be sure you can differentiate between Chapter 7 and Chapter 13 differ. 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 five year repayment plan that takes 60 months to work with until the debts go away.

Filing for bankruptcy does not necessarily mean that you will lose your house. Depending on if your home’s value has gone down or if it has a second mortgage, you may end up keeping it. You may also want to check into homestead exemption because it may allow you to keep your home.

Before filing for bankruptcy consider every available avenue. It may be that all you really need to do is consolidate some of your debt instead. It can be quite stressful to undergo the lengthy process to file for personal bankruptcy.It will also harm your ability to get credit for the next few years. This is why you must ensure that bankruptcy is your last resort.

Chapter 13 Bankruptcy

Consider if Chapter 13 bankruptcy. If you are receiving money on a regular basis and your unsecured debt is under $250,000 and have a consistent income source, you can file for Chapter 13 bankruptcy. This lasts for three to five years and after this, in which you’ll be discharged from unsecured debt. Keep in mind that even missing one payment can be enough for your case.

Look into all of your options before filing. Loan modification can help if you get out of foreclosure. The lender can help your financial situation by getting interest rates lowered, so they may be willing to forgive some fees, change the loan term or reduce interest as ways of assisting you. When all is said and done the creditors just want their money, creditors want their money and find repayment plans preferable to not getting paid at all.

This article has probably helped you see that bankruptcy is a process that involves a lot of planning. Many issues need to be handled the right way. When you implement the suggestions in this article, you can feel confident that you have covered all the bases with regard to bankruptcy filing.

If you were interested in learning about What Is Bankruptcy, you will now know that this is the place to be. Take this knowledge about What Is Bankruptcy and start putting it into action. After you go over what was presented here, you’ll have an easier time with this topic.

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