Filing for bankruptcy can be a viable for anyone who has had possessions repossessed by the IRS. Bankruptcy can have a major effect on credit; but, but in many cases, people have no choice but to file. Read this article to learn more about filing bankruptcy as well as the consequences of doing so.
Always be honest when it comes to your bankruptcy petition.
The Bankruptcy Code has lists of various asset types that are excluded from bankruptcy. If you don’t read this list, you might find yourself getting surprised when your favorite things are repossessed.
Filing a bankruptcy petition might facilitate the return of your property, like your car, electronics or other items that may have been repossessed. You should be able to recover repossessed property if they have been taken away from you within 90 days before you filed for bankruptcy. Speak with a lawyer that will provide you file the entire thing.
Chapter 13 Bankruptcy
Be certain that you can differentiate between Chapter 7 and Chapter 13 bankruptcy cases. Chapter 7 is the elimination of all of your debts for good. You will be removed from any contracts you owe to your creditors. Chapter 13 bankruptcy allows for a five year repayment plan that takes 60 months to work with until the debts go away.
Understand the differences between a Chapter 7 and a Chapter 13 bankruptcy. Take the time to find out about each one online, and then figure out which one will be best for your particular situation. If you’re really not sure how this all works after your research, go over it with your lawyer prior to choosing which one to file.
Consider if Chapter 13 bankruptcy. If your source of income is regular and your unsecured debt is less than a quarter million, a Chapter 13 may be right for you. This plan normally lasts from three to five years, your unsecured debt will be discharged. Keep in mind that missed payments will trigger dismissal of your whole case to get dismissed.