Can I File For Bankruptcy If I Haven’t Filed Taxes? Consequences and Alternatives to Bankruptcy

Can I File For Bankruptcy If I Haven’t Filed Taxes? Consequences and Alternatives to Bankruptcy photo 0 All

Can I File For Bankruptcy If I Haven’t Filed Taxes? Consequences and Alternatives to Bankruptcy

Can I File For Bankruptcy If I Haven’t Filed Taxes? Consequences and Alternatives to Bankruptcy photo 1

Over the past some years bankruptcy filings have increased tremendously. The main reason behind it is credit card debts. Most folks in the United States prefer using credit cards instead of cash everywhere. They even build the smallest purchase by using credit cards. This creates enormous amounts of credit card bills and now with the recession by their side, they have lost jobs or earn insufficient wages due to which they are unable to pay the bills. Every month when the bills are gone in default, it piles up and piles up creating a debt which is out of control.

Some folk wish not to file for bankruptcy because there would be too plenty risk factors involved for them or their family. In argument of such situations, a lawyer helps clients to deal with creditors, negotiate a debt settlement and arrange refinancing. A bankruptcy lawyer need to have the knowledge and legal expertise of the new bankruptcy law that went into effect on October 17, 2005 and how it will affect debtor’s rights, Chapter 7 filing and Chapter 13 filing.

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Filing bankruptcy under chapter 7 of the bankruptcy code, costs almost 250 to 350 dollars depending upon the particular argument. However, you have to not forget about the long-term bankruptcy expense that chapter 7 bankruptcy brings with it. Once you are declared bankrupt under this chapter, the bankruptcy will keep affecting your financial life negatively, for the next 10 years at least.

Chapter 7 bankruptcy can be described as a liquidation proceeding. There is a certain quantity of property that is exempt, but the rest of your property might be turned over to the bankruptcy trustee to be sold and divided among your creditors. There are some debts that cannot be discharged, but you will be free of everyone dischargeable debts within a few months after filing for bankruptcy. This provides for a fresh start and may be a great relief for those heavily burdened with debt that they just may’t manage any longer.

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The means check is designed to weed out those people who don’t truly want to file a chapter 7 in the hopes that more folk will need to file a chapter 13 bankruptcy and pay all, or a portion, of their debt back to their creditors through a court ordered repayment plan. Remember, the new bankruptcy law was funded by creditors therefore it only seems logical that the law might encourage the repayment form of bankruptcy.

The best way to overcome these times is to get organised. Prepare a monthly budget and stick to it. Keep your expenses in test. It is not that difficult. Observe your payments over a period of three months, and then plan your budget limits. The best path to proceed is to ask for counselling. An attorney specialized in bankruptcy or a monetary analyst can truly help you get organized and plan a reasonable and acceptable budget to help you get over these hard times.

Other articles you might like:

  • Can I File For Bankruptcy If I Haven’t Filed Taxes? Consequences and Alternatives to Bankruptcy
  • Bankruptcy Chapter 7 Vs Bankruptcy Chapter 13
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