Personal Bankruptcy And The Middle Class Family
It is not uncommon these days for people to be drowning in debt. Threats come from collection agencies and other creditors while the bills just keep piling up. If this sounds like you and your situation, filing for bankruptcy may be a good idea for you. This article will help you to decide if filing for bankruptcy is the right option for you.
Learn as much as you can about bankruptcy by going to informational websites. The US Department of Justice, NACBA, and American Bankruptcy Institute websites are all great places to go for up-to-date information. The more you know, the better equipped you’ll be to make the wise decisions needed for a successful bankruptcy.
Don’t use a credit card to pay off your taxes before filing for bankruptcy. Most of the time, you cannot discharge this debt. As a result, you will owe the IRS a lot of money. Bear this in mind; if the tax can be discharged, then the debt can be as well. If you live in an area where tax can be discharged through bankruptcy, financing your tax bill is pretty pointless.
No matter what, don’t give up! When you file for bankruptcy you may be allowed to recover property like your car, electronics or jewelry that might have been repossessed. If the property you own has been repossessed under 90 days before the bankruptcy filing, you may still be able to get it back. Discuss your options with a good lawyer who can help you with the filing of your bankruptcy petition.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Get a good grasp of the pluses and minuses each type of filing involves by researching both of them extensively. Ask your bankruptcy lawyer to clarify anything you don’t understand before making a final decision about which type of bankruptcy to file.
Sometimes, financial crises just take place in your life and you do not have the chance to do much about them. By following the pointers presented in this article, you will be able to keep your finances under control while proceeding through bankruptcy. Apply the advice from this article and you will be on your way to realizing financial freedom.