Understanding What To Expect When You're Going Through A Bankruptcy
Frustration, sadness, anguish and anger are feelings that are felt by anyone who experiences personal bankruptcy. Many people are fixated on the question as to how they will repay their debts so much that they are unable to live their daily lives. By reading this article, you will soon realize that bankruptcy is not the end of the road for your financial future.
When you feel certain that you must file for personal bankruptcy, refrain from squandering your life savings to pay off unsecured debt. You should always keep money saved for worse times. While you may have to use a part of your savings, never completely wipe it out which would only leave you in worse financial shape in the future.
Do not use a credit card to pay income taxes and then file for bankruptcy. In many parts of the country, you cannot get this debt discharged, and in the end you will be left owing the IRS a big sum of money. In most cases, you can use the adage that "a dischargeable tax is a dischargeable debt." So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.
Instead of getting your lawyer from the yellow pages or on the Internet, try your hardest to find one with a personal recommendation. Companies are constantly popping up, claiming to help, yet only seek to profit from your misery. In ensuring that your bankruptcy is as simple as possible, trusting your attorney makes a big difference.
Determine which assets won't be seized before filing for bankruptcy. The Bankruptcy Code lists the kinds of assets which are exempted when it comes to the bankruptcy process. It is vital that you know the things on this list prior to filing for bankruptcy, in order to determine which of your possessions will be taken away. If you don't read this list, there is a chance that you might get nasty surprises when they take your things away.
Don't hide assets or liabilities when filing for bankruptcy. The professional that helps you file for bankruptcy has to have a complete and accurate picture of your financial condition. Put everything out on the table and craft a wise plan for handling the situation the best you can.
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. If your source of income is regular and your unsecured debt is less than a quarter million, Chapter 13 bankruptcy is something you are able to file for. When you file for Chapter 13, you can use the debt consolidation plan to repay your debts, while retaining your real estate and your personal property. The window for Chapter 13 repayments is typically 3-5 years. At the end of this time, any unsecured debt is discharged. Bear in mind that if you miss a single payment that is due under your plan, the entire case will be dismissed by the Court.
moneylender singapore Understand the differences between Chapter 7 and Chapter 13 bankruptcy. All debt will be eliminated with Chapter 7. Your responsibilities to your creditors will be satisfied. Chapter 13 bankruptcy though will make you work out a payment plan that takes 60 months to work with until the debts go away. Both options have advantages and drawbacks, so do your research before deciding.
After reading this article, hopefully you now know that bankruptcy does not have to mean doom and gloom. Though it is very difficult, personal bankruptcy is not the end. Implement the advice from this article, and be on your way to your fresh start.