These days, the process of bankruptcy is an all to common occurrence. Thank you, economy! Before deciding to seek bankruptcy, you need to know the right information and what to expect; that way, you will make better decisions. If you read this article, you will learn what you need to know.
Most people that file for bankruptcy owe a lot of money that they could not pay off. If this is your case, you should do some research about bankruptcy laws in your state. Each state has their own bankruptcy laws. For instance, your home might be protected in some states while you might lose it in others. Make sure you know the laws where you live before you file.
Do not even think about paying your taxes with credit and petitioning for bankruptcy right after. Most states do not look at this debt as chargeable, and you could end up owing money to the IRS. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. So, in short, do not use your credit cards to pay off debts right before you file for bankruptcy.
Credit History
Consider all options before deciding to file for personal bankruptcy. Avail yourself of other options, including consumer credit counseling, if they are appropriate for your situation. Bankruptcy leaves a permanent mark on your credit history, so before you take such a large step, you want to exhaust all other options so that the future effects on your credit history are as minimal as possible.
Be sure to remind your lawyer if it seems that some details of your situation are forgotten. Chances are that you may have forgotten to tell them about certain specifics that may be important to your filing. Don’t fear speaking up since it affects your case and future.
Don’t throw in the towel. 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. There is a chance that you can get back your property if it has been less than ninety days since repossession. Talk to a lawyer for help with the petition filing process.
Make sure your home is safe. You don’t have to lose your home just because you are filing for bankruptcy. You might be able to keep your home, contingent on certain factors, such as your home decreasing in value or having a second mortgage. You can also investigate your state’s homestead exemption, an option that might enable you to keep your home if certain financial requirements are met.
Consider all options before filing for bankruptcy. Instead of rushing into bankruptcy, a good idea is too speak with an attorney who may be able to get your interest rates reduced or help get you on a debt repayment program. 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. When push comes to shove, creditors want their money, and they are willing to make concessions to get it and prevent the debtor from declaring bankruptcy.
After you have finished with the initial process of filing, you can relax and take a breather. After filing, many people find themselves stressing over their situation and how to fix it. This kind of stress can take a heavy toll on your personal life, especially if you are not making any efforts to adopt a positive attitude. Life will get better after you finally get this situation over with.
Bankruptcy should not be put off until the very last second. The judge reviewing your petition will consider your recent behavior, purchases, income and payments when making a decision. Yet you can have debtors come after you and potentially take your home if you are not handling your debts properly. As soon as you’ve decided that you no longer have a handle on your debts, consult a bankruptcy lawyer to see if bankruptcy is right for you.
As noted in the beginning of the article, bankruptcy is a hot topic nowadays, mostly because of the state of the economy. If you want to know that you are doing the right thing when dealing with your bankruptcy be sure to put the information you read in this article to use.
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