Are you in debt? Do you think that there is no way to get out of your debt except to file for bankruptcy? Due to the Internet, there are all kinds of tips on how you can avoid bankruptcy. Read this article and learn how you may prevent bankruptcy.
Personal Bankruptcy
Make sure that you understand everything you can about personal bankruptcy by visiting websites that offer information. The United States Run a quick Internet search to find out all the different agencies you should be contacting or visiting via the web to find out what you can. You will find that the process of filing for personal bankruptcy is easier and less of a hassle with the more information on the subject you gather ahead of time.
Don’t use credit cards to pay your taxes if you’re going to file 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 can be discharged, so can the debt. Thus, it doesn’t make sense to use a credit card when it is going to be discharged when you file for bankruptcy.
Try going to a personally recommended bankruptcy lawyer instead of using a phone book or the Internet. You want your bankruptcy to go smoothly, and the Internet is rife with fly-by-night companies whose only goal is to prey upon the financially desperate.
Make sure you are completely honest when filing for bankruptcy. Hiding your assets is never wise. Your bankruptcy lawyer has to know every detail of your finances, whether bad or good. Do not leave anything out and come up with smart plan to manage the situation you are dealing with.
Many bankruptcy attorneys offer the first consultation with no charge, so consult with several before deciding on one. Just be sure that the person you speak with really is the lawyer, rather than a paralegal, since they cannot legally give advice. By meeting with several attorneys through a free consultation you will be able to choose which attorney you feel more comfortable with.
Become knowledgeable in regards to details about chapter seven bankruptcy vs. chapter 13 bankruptcy. Weigh all the information you can find on- and off-line to make an educated decision. Learning about bankruptcy is not simple, so call a bankruptcy attorney to make an appointment to ask questions.
Chapter 13
Learn what you can about Chapter 13 bankruptcies. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. Filing for this type of debt will ensure that you can hold onto your real estate and personal property, and will let you develop a consolidation plan to pay off your debts. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. Remember that if you fail to make any of the payments on time, the court may dismiss your case.
Do not file for bankruptcy if your income is greater than your bills. Although bankruptcy may feel like a simple method of getting out of your large debt, it leaves a permanent mark on your credit history for up to 10 years.
Don’t forget to enjoy your life once your finances get fixed. Filing for personal bankruptcy can be very stressful for the debtor. That stress can cause depression, if you don’t take care to avoid it. Life will surely get better after you finish this process.
If you’re willing to learn and exercise patience and understanding in the process, filing bankruptcy doesn’t have to be a difficult process. The more you can distance yourself from having to file for bankruptcy, the better off you are. If you are making efforts, then you should have nothing to worry about. Get your plan together today, and start working towards a better financial future.
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