Things To Keep In Mind When Declaring Bankruptcy
Filing for bankruptcy is still an option for anyone who has had possessions repossessed by the IRS. There are times when bankruptcy is the last option left, even if it substantially damages your credit score. Keep reading to gain a better understanding of the bankruptcy process and of the ramifications of initiating a filing.
licensed money lender When filing for bankruptcy it is crucial that you are candid and not concealing any liabilities or assets, as it will only show up in the future. Your attorney and trustee should be privy to all information about your finances. Keeping secrets or trying to outsmart everyone is not a wise move.
As filing bankruptcy becomes more of a reality, don't use your entire savings or your retirement funds to pay creditors or attempt to resolve insolvency. You should not use your retirement savings unless the situation calls for it. Using your savings is necessary, but decimating it and leaving yourself dangling with no future financial security is not a good idea.
Since it is possible to obtain a free consultation from the majority of bankruptcy lawyers, meet with a few of them prior to choosing one. Always ensure that the person you meet with is a real lawyer, not a legal assistant or paralegal. These people can't give legal advice. Hiring a lawyer could help you become comfortable with the legal things that you will encounter.
Chapter 13 bankruptcy might be a good option, so don't overlook it. With a consistent income source and less than $250k in debt, try filing for Chapter 13. This allows you to keep possession of your real estate and property and repay your debt through a debt plan. This plan normally lasts from three to five years, in which you'll be discharged from unsecured debt. Stay mindful that should you for any reason miss even one plan payment, your whole case is going to get thrown out by the court system.
Research what assets are exempt from seizure before you decide to declare bankruptcy. Bankruptcy exemptions are properties may not be seized during bankruptcy. Be sure that you study this list. Make yourself aware of any assets you have that could be seized. You wouldn't want to unexpectedly lose any possessions you treasure.
No good will come of trying to conceal your assets or your liabilities in the bankruptcy process; you want to be scrupulously honest when you declare bankruptcy. Good or bad, you must tell your bankruptcy attorney everything about your financial situation. Divulge all of your information so that you and your lawyer can devise the best strategy for dealing with your situation.
Never pay for a consult with a bankruptcy lawyer, and ask plenty of questions. The majority of lawyers offer their first consult at no cost, so ensure you meet with several to find one that you like. Only make a decision after you have met with several attorneys and all of your concerns and questions have been addressed. It is not necessary to decide immediately after your consultation. This allows you time to speak with numerous lawyers.
It goes without saying that, bankruptcy is always available as an option. Just be sure that you do not use it as your first choice. Staying informed on how to manage this situation could prevent you from experiencing headaches and it can also help you keep your valuables.