Many people fear the thought of bankruptcy. The piling on of debt and not being able to support their family is an awful situation for many to ponder. The following advice will greatly help you if bankruptcy is a fear of yours.
Do not pay your taxes with credit cards that will be canceled when you file for bankruptcy. Credit card debt is handled charge by charge during bankruptcy, and in most states, tax debt cannot be discharged through bankruptcy. If the tax has the ability to be eliminated, the debt can be too. There isn’t any reason to use a credit card to pay the tax bill since the bill can be discharged anyway.
Never give up. Filing for bankruptcy may allow you to get back property, such as an auto, jewelry, or electronics, that you may have had repossessed. You should be able to get your possessions back if they have been taken away from you within 90 days before you filed for bankruptcy. Talk to your lawyer to find out how to go about properly filing a petition.
Any bankruptcy consultation should be free of charge. Nearly all attorneys offer free initial consultations, so you should be able to meet with a few before you make a final hiring decision. Only make a decision after you have met with several attorneys and all of your concerns and questions have been addressed. You do not have to give them your decision right after the consultation. This allows you time to speak with numerous lawyers.
Hire a lawyer if you plan on filing for bankruptcy. Bankruptcy is a complex process, and you probably don’t know all the information that is required to navigate it. A qualified bankruptcy attorney can guide you through the filing process.
State Legislature
Brush up on the latest bankruptcy regulations before you decide whether or not to file. If you want to file for bankruptcy successfully, it’s important to review the latest applicable laws. They tend to change frequently. Review the state legislature web site or contact the state legislature office to keep abreast of changes in the law.
It’s a good idea to meet with a number of bankruptcy lawyers before settling upon one. The majority of them offer free initial consultations. Meet with the actual lawyer, not a paralegal or assistant, as they’re not allowed to give out legal advice. Interviewing multiple attorneys is a good way to find the best fit.
Filing for bankruptcy should not be done on a whim. For example, you can always talk with a lawyer to see about different options through creditors or other means that will not require wiping the entire slate clean. If a foreclosure is on your horizon, look into loan modification plans. Lenders can assist you in a lot of ways, by cutting interest rate charges and cutting off late fee charges. They can also lengthen the loan. At the end of the day, creditors want to get paid, and sometimes a debt repayment plan is preferable to dealing with a bankrupt debtor.
After your initial filing, take time to enjoy yourself a bit and get your mind off of it. It’s not uncommon to be overwhelmed by the filing process. Depression and burn-out from pent of stress will do nothing to help your situation, so it is critical to let go a little. While the process is tough, you are getting a chance to start over.
People fear bankruptcy with good reason. It is a pretty daunting process to go through. You may have been scared before, but this article has probably allayed your fears. Start making use of this bankruptcy advice right now and give your financial life a fresh new start.
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