Bankruptcy: Some Tips You Should Know About
Just the thought of bankruptcy creeping up on you, can make you fearful to say the least. The thought of losing their homes and cars and being overcome by debt is something they rightfully fear. If these are issues that plague you, you will find this article full of helpful advice.
Think twice if you have struck upon the idea of paying off your taxes by credit card and subsequently filing for personal bankruptcy. In a lot of places, the debt cannot be discharged, and you may still owe money to the IRS. If the tax has the ability to be eliminated, the debt can be too. If you live in an area where tax can be discharged through bankruptcy, financing your tax bill is pretty pointless.
Ensure that you are providing genuine details when filing a bankruptcy petition, because honesty is the best policy when dealing with bankruptcy. You must avoid the temptation to conceal any valuables, money or other assets from the courts. If they find that you have lied, you may be faced with fines, penalties or the inability to file in the future.
There are two types of bankruptcy filing, Chapter 7 and Chapter 13 so make sure you know the differences. Chapter 7 bankruptcy completely wipes out your debt. Your responsibilities to your creditors will be satisfied. If you choose to file for Chapter 12 bankruptcy, you’ll be put into a 60-month plan for repaying your debts before they’re eliminated. It’s important to know what differences come with every type of bankruptcy. This will let you find out what’s best for you.
Seek a less serious option prior to filing for bankruptcy. For example, you want to look into credit counseling. This is the best option for small debts. You may have luck negotiating lower payments by dealing directly with creditors, but be sure to document any get and new agreement terms in writing from each creditor.
As you’ve read, bankruptcy isn’t as simple as it might sound. You must do a wide variety of things correctly. If you use the advice from this article, everything will be properly taken care of when you file for bankruptcy.