Personal bankruptcy can be overwhelming during the process, but a load off your shoulders once you get through it. On one hand, having people go through all of your personal financial information can be formidable. The positive is that once the process has been completed, you will be debt-free and free of harassment from creditors. Here are some simple tips anyone can use to help make the process of bankruptcy go smooth.
Don’t use a credit card to pay off your taxes before filing for bankruptcy. In some places the debt can not be discharged, and you may still need to pay the IRS afterward. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. Because of this, transferring the debt to your credit card is pointless.
Make sure you’ve exhausted all other options prior to declaring bankruptcy. You have other choices, including consumer credit counseling. Be certain that bankruptcy is the only option you have before pursuing this course because bankruptcy is always evident on your financial and credit history.
Don’t be afraid to remind your attorney of certain details in your case. Inaccurate or incomplete information can lead to your petition being denied. All information submitted to the court with your signature needs to be double checked.
Use a personally recommended bankruptcy attorney instead of one found through the Internet or phone books. There are a number of companies who may take advantage of your situation, so always work with someone that is trustworthy.
There is hope! If you’ve had collateral, such as a car, electronics, or jewelry repossessed for non-payment, you might be able to recover the property when you file for bankruptcy. If your personal property was repossessed within 90 days before your bankruptcy filing, you may have a chance of getting it back. Interview and research attorneys before choosing one to help you with your bankruptcy.
Make certain that you comprehend the differences between Chapters 7 and 13. If you file using Chapter 7 bankruptcy, you will get all your debts eliminated. You will no longer be liable for any money that you owe to your creditors. Chapter 13, on the other hand, involves a five year payment period before any remaining debts are cancelled. It’s imperative that you know the differences among the various categories of bankruptcy so that you are able to choose the wisest one for you.
Take advantage of the opportunity to consult with a number of bankruptcy lawyers who offer the first visit at no charge. Make sure that you meet with an actual lawyer and not an assistant or paralegal, as these people are not allowed to provide legal advice. Interviewing multiple attorneys is a good way to find the best fit.
If your earnings are higher than your expenses then filing for bankruptcy is a waste of time and money. 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.
Before you file for personal bankruptcy, weigh all of your options. There are many recouses available to help you lower your payments and get back on track. Loan modification can help you get out of foreclosure. These plans allow you a longer pay off period by extending the term of the loan, reducing the rate of interest or forgiving late fees. Creditors would rather be repaid, however slowly, than have you declare bankruptcy.
Think about the pros and cons before filing. Regardless of what your reason for declaring bankruptcy is, it is vital that you keep informed and involved in the entire process. The tips laid out here will help you cope with bankruptcy in an easier manner. Use these tips during the process and feel a little better about it.
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