What You Need To Know About Personal Bankruptcy Now

by Terrence K. Magee on November 22, 2014

A lot of people are in debt trap. They are harassed by collection agencies and creditors and their finances under control. If this is happening to you, you might want to consider filing for bankruptcy. The article below will help you to decide if bankruptcy is right for you.

If this sounds like you, it is a good thing to familiarize yourself with the laws that apply in your area. Each state has its own laws regarding bankruptcy. For example, in some states you can keep your home and car, while other states prohibit this. You should be aware of local bankruptcy laws before filing for bankruptcy.

Don’t use credit cards to pay your taxes before filing for bankruptcy. In many areas of the country, the debt cannot be discharged, and in the end you will be left owing the IRS a big sum of money. This makes using a credit care irrelevant, when it will just be discharged.

Always be honest when it comes to your bankruptcy petition.

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

Chapter 13 Bankruptcy

Be sure you know how Chapter 7 and Chapter 13 bankruptcy cases. Chapter 7 bankruptcy is intended to wipe out all of your debt. Any debts that you owe to creditors will be dissolved. Chapter 13 bankruptcy though will make you work out a five year repayment plan that takes 60 months to work with until the debts go away.

Filing bankruptcy does not guarantee that you will lose your house. Depending on certain conditions, you might be able to keep it. You are still going to want to check out the homestead exemption either way just in case.

Consider filing a Chapter 13 bankruptcy is an option. If you have regular income and under $250K in unsecured debt, you are eligible to file a Chapter 13. 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.

Think about all your options before pulling the choices available to you when you file for bankruptcy. Loan modification can help you get out of this. The lender can help your financial situation by getting interest rates lowered, dropping late charges, change the loan term or reduce interest as ways of assisting you. When push comes to shove, creditors want their money, so sometimes it’s best to deal with a repayment plan than with a bankruptcy debtor.

Hopefully, you now understand that there are many options open to you when you are giving a personal bankruptcy filing serious thought. By embarking on the process with sufficient knowledge and with the right frame of mind, it is possible to gain a fresh financial start.

Many people are interested in What Is Bankruptcy, but are unsure of how to learn more. You have found the information you require to get going, right here in this article. Begin using the information that you have learned about What Is Bankruptcy from this article.

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