Making The Right Decisions When Filing Bankruptcy

If you are facing the repossession of valuables, such as cars or jewelry, you may be feeling some fear. When you file for personal bankruptcy, you will be able to sort out your finances and end calls from debt collectors. Keep reading to gain useful insight about navigating the process.

Don’t think that loading up your credit card with tax debt and then filing for bankruptcy is an answer either. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. Keep in mind that if the tax debt is eligible to be discharged, then the credit card debt is also dischargeable. Just because your credit card could be discharged in bankruptcy does not mean you should use it.

Before you decide to file bankruptcy proceedings, determine which assets will be safe. Certain assets, as listed in the local bankruptcy regulations, are immune from seizure during bankruptcy. It is crucial to read the list before you file for bankruptcy so you know whether your favorite items will be taken. If you are not aware of the rules, you could be setting yourself up for a lot of stress when your most important possessions are taken in the bankruptcy.

Find out what you exemptions are prior to filing bankruptcy. The kinds of assets which may be exempted during bankruptcy proceedings are listed 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. You may find yourself unpleasantly surprised when the things you value the most are taken from you without warning. This is why it is very important the familiarize yourself with this list.

Do not despair, as it’s not the end of the world. Once bankruptcy has been filed, you may be able to regain possession of items such as electronic goods or cars that were taken away from you. If it has been 90 days or less between the repossession of your property and your filing, you might be able to get your property back. Talk to your lawyer to find out how to go about properly filing a petition.

As mentioned at the beginning of the article, you are not the only person in the world who has found themselves needing to file bankruptcy. However, others who are filing for bankruptcy do not have the advice that you have just been given. Put the tips you learned into action so that you can ensure your bankruptcy process moves along without trouble.