Filing for bankruptcy is still an option for anyone who has had their possessions repossessed by the IRS.Bankruptcy can wreak havoc on credit, but sometimes it can be the right choice. The following article will provide some basic information you need to understand the results of choosing to file for bankruptcy and its possible consequences.Retirement funds should never be accessed unless all costs.Although it is quite normal to use some of your savings, you should not use up all of it right now and jeopardize the financial security of your future.The professional that helps you file with needs to know both the good and bad aspects of your financial condition.A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.Be sure to enlist the help of a lawyer if you’re going to be filing for personal bankruptcy.You might not know everything you need to know in order to have a successful outcome of the various aspects to filing for bankruptcy.A specialized bankruptcy lawyer can make sure you are following the correct procedures in your filing.Before making the decision to file for bankruptcy, ensure that all other options have been considered. For example, a consumer credit counseling program may be a better bet if your debts are relatively small. You may have the ability to negotiate much lower payments, but be sure to document any get and new agreement terms in writing from each creditor.
Bankruptcy filings don’t necessarily have to lose your house. You might be able to keep your home, for instance, such as your home decreasing in value or having a second mortgage.You may also want to check out the homestead exemption either way just in case.Prior to filing for bankruptcy, determine which assets, if any, are exempt from being seized. You can find a listing of the asset types that are excluded from bankruptcy in the Bankruptcy Code. You need to compare this list to the assets you own so that you are not surprised when certain assets are seized. It is important to know what types of possessions may be taken away before they actually are seized.
Chapter 13 Bankruptcy
Consider if Chapter 13 bankruptcy for your filing. If you owe an amount under $250,000 in unsecured debt, you may be able to file Chapter 13 bankruptcy. This lasts for three to five years and after this, in which you’ll be discharged from unsecured debt.Keep in mind that even missing one payment can be enough for your case.As said in the beginning of the article, personal bankruptcy is always an option. Nonetheless, you should remember the negative impact filing for bankruptcy will have on your credit rating. For this reason, filing for personal bankruptcy should be your last resort. As long as you’re properly informed about which moves to take and when, you should have little trouble navigating the process and ultimately restructuring your credit.Never pay for a consult with a bankruptcy lawyer, and ask plenty of questions. Since most attorneys offer free consultations, meet with a few attorneys before deciding who to hire. Choose an attorney who is experienced, educated and well-versed in bankruptcy laws. After the consultation, you are not immediately required to come up with a decision. You can take as much time as you need to meet with different lawyers.