Filing for bankruptcy can be a viable for anyone who has had possessions repossessed by the IRS. Although filing bankruptcy can have a major effect on a person’s credit record, it’s occasionally the only available option. Continue reading this article to understand what you need to know about how and why to file for bankruptcy.
Don’t use a credit cards to pay your taxes before filing for bankruptcy. In many parts of the country, this debt will not be dischargeable, and you may still owe money to the IRS. This means using a credit card is not necessary, since bankruptcy will discharge it.
Always be honest with the information you give about your bankruptcy petition.
The Bankruptcy Code contains a list of various assets which are excluded from bankruptcy. If you don’t read this list, you could lose some assets that you value.
Filing for personal bankruptcy may possibly enable you to reclaim your personal property that have been repossessed, including cards, electronics or other items that may have been repossessed. You should be able to recover repossessed property if the repossession occurred fewer than 90 days ago.Speak to a lawyer that will provide you with guidance for the necessary paperwork.
Learn of new laws before you file bankruptcy. Bankruptcy laws are in constant flux, you need to know what you are getting yourself into. Your state’s website will have the information about these changes.
Before pulling the trigger on bankruptcy, ensure that all other options have been considered. For example, if your debt is small, you might be better off if you went through consumer credit counseling. You may also find success in negotiating lower payment arrangements yourself, but be sure to document any get and new agreement terms in writing from each creditor.
Be certain that you can differentiate between Chapter 7 and Chapter 13 bankruptcy cases. Chapter 7 …