Even people who have had assets, such as a car, seized for back tax debt can file for bankruptcy. Although bankruptcy takes a major toll on credit, sometimes, it is the only option. Continue reading to learn about the bankruptcy process, and what filing for it will mean for you.
It is essential when going through bankruptcy that all of your income and assets are reported openly and honestly. You may be tempted to try to hide income and personal assets from discovery, but doing so often leads to major complications, monetary penalties and the possibility that your case will be thrown out of court.
Do some research to find out which assets you could lose by filing for personal bankruptcy. The Bankruptcy Code contains a list of various assets that are excluded from bankruptcy. You need to read the exemptions for your state, so you know what property you can protect. You wouldn’t want to unexpectedly lose any possessions you treasure.
Keep with what you have decided to do. Filing for bankruptcy may allow you to get back property, such as an auto, jewelry, or electronics, that you may have had repossessed. Any property repossessed within 90 days before filing bankruptcy, may be able to be returned to you. Get help from your lawyer to file a petition so you can get your items back.
Consider filing a Chapter 13 bankruptcy. If you have less than a quarter of a million dollars in debt that is unsecured and a regular income, you are eligible to file a Chapter 13. You can keep personal possessions, as well as real estate, while paying into a debt consolidation system. Generally, this stays in effect for up to 5 years. Afterwards, your unsecured debts clear from your accounts. However, if you were to miss a payment, the court would dismiss your case right away.
Now after reading the above article, you should be aware of the many options that can help you once you file for bankruptcy. Bankruptcy is a serious matter, but it can be managed. Stick with the information presented here and over time you will be able to slowly crawl out from under the mountain of debt you have accumulated.
