Just thinking about bankruptcy can frighten people. Similarly, mounting debt and the inability to sufficiently support oneself and family is another very real fear. If you are haunted by these terrible thoughts, or are about to go through with this, this article will help you in the process.
Don't think that loading up your credit card with tax debt and then filing for bankruptcy is an answer either. Most states do not look at this debt as chargeable, and you could end up owing money to the IRS. Transferring the debt to another medium (e.g. a credit card) won't magically make a tax debt discharagable, either. If you live in an area where tax can be discharged through bankruptcy, financing your tax bill is pretty pointless.
Prior to filing your bankruptcy petition, go over the list of assets that cannot be seized by creditors. The Bankruptcy Code provides a list of all the different kinds of assets that you can exclude. You need to compare this list to the assets you own so that you are not surprised when certain assets are seized. If you don't read it, you could have nasty surprises pop up later due to your prized possessions being seized.
Know the differences between Chapter 7 and Chapter 13 bankruptcy. Chapter 7 bankruptcy completely wipes out your debt. Your ties with all creditors will get dissolved. Filing Chapter 13 differs by requiring you to agree to a 60 month plan to repay your debts before they are totally eliminated. It is worth while to take your time to research both types of bankruptcy to decide which option works best for you, and your financial situation.
You can take steps to hang onto your house. Bankruptcy filings do not necessarily mean that you have to lose your house. There are mitigating factors, such as lose of value, or multiple mortgages. You are still going to want to check into homestead exemption either way just in case.
Spend time with loved ones. The whole process of filing for bankruptcy is hard. It's generally stressful, lengthy and can make people feel guilty, ashamed, and unworthy. A lot of people hide away until the entire proceedings have been played out. This is not recommended because you will only feel bad and this may cause you to feel depressed. Thus, you must keep living your life and socializing with those you love, no matter what is going on with your bankruptcy.
Get more facts about personal loan singapore If you are making more money than you owe, bankruptcy should not even be an option. It can seem like bankruptcy can be an easy way to avoid paying back your debts, however it leaves a serious mark in your credit report that can last between seven and ten years.
Before you even consider filing for bankruptcy, familiarize yourself with the laws surrounding this process. You need to know certain things, like the fact that it's illegal to transfer any asserts 12 months before filing your claim. In addition, it's unlawful for a filer to acquire more debt on their credit cards before they file.
Bankruptcy should be considered only as a last option. Try to relax and avoid getting stressed out about your bankruptcy. This article shares what you need to know about fixing your financial predicament.