It’s not uncommon for people to look down on others who choose bankruptcy, but one day find themselves in the same situation. Divorce, job loss and illness can all lead people to certain bankruptcy. If you are in this situation, this article will help you learn more about bankruptcy.
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. Generally speaking, taxes are not a dischargeable debt. The delays caused by this sort of tactic could leave you owing the IRS a great deal in interest and penalties. In most cases, you can use the adage that “a dischargeable tax is a dischargeable debt.” So it does not help you to put the tax bill on your charge card if you know the debt will be discharged anyway.
Always remind your lawyer of specifics that are important to your case. Never assume that they can remember all details without reminders. It is in your best interest to speak out. You are in control of the outcome of your bankruptcy.
Make sure you are completely honest when filing for bankruptcy. Hiding your assets is never wise. Good or bad, you must tell your bankruptcy attorney everything about your financial situation. Lay everything out on the table so that you and your lawyer can devise a plan to get you out of this mess.
Before filing for bankruptcy, hire a qualified attorney. You might not understand all of the various aspects to filing for bankruptcy. When you engage the services of a bankruptcy lawyer, you can be assured of getting the help your need to proceed correctly.
Educate yourself about state bankruptcy laws and possible outcomes before filing your petition. The laws are constantly undergoing changes, so you must stay on top of them if you are going to file for personal bankruptcy correctly. All of these changes will be addressed on the state’s legislative site. You can also contact them directly by phone or office visit.
Don’t file for bankruptcy unless it’s absolutely necessary. You may find consolidating your debt may be simpler. Bankruptcy is a long process that can be stressful. It will also harm your ability to secure credit in years to come. Because of this, you should be sure that bankruptcy is your only option before you file.
Chapter 13
Look into filing Chapter 13 bankruptcy. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. This lets you keep any real estate and personal property while you repay all your debts through a consolidation program. Typically, this goes on for roughly three to five years, and once this time has expired, your unsecured debt is eliminated. Bear in mind that if you miss a single payment that is due under your plan, the entire case will be dismissed by the Court.
If your earnings are higher than your expenses then filing for bankruptcy is a waste of time and money. Though bankruptcy may appear to be a good way to escape your debts, it does affect your credit negatively for a fairly long time.
Once you have completed the bankruptcy filing, you should take time to do something you enjoy. It is common for people to stress when filing. Depression can ensue from the stress if action isn’t taken. Your life will most likely improve once you’re over this hump, so relax.
Debt Collectors
When you file for bankruptcy, you should be very aware of your rights. Do not take debt collectors at their word when they tell you that a specific debt can’t be discharged through bankruptcy. You should know that only a few debts cannot be erased, including student loans and child support. If any debt collectors tell you that their debts can’t be bankrupted, make a report with your state attorney general.
Lots of individuals who previously filed bankruptcy vow to shun the use of credit cards or lines of credit in the future. This isn’t necessarily a good strategy to follow since establishing good credit goes hand-in-hand with getting, and handling, credit in a responsible manner. If you don’t ever use credit, your credit history will not improve, and you may not be able to purchase important things like a home and car. Keep it simple with one card and take a slow approach to rebuilding.
Try to get a referral from a trusted source before choosing an attorney to handle your bankruptcy and make sure they have no issues with the state bar or the better business bureau. Because of the increase in bankruptcy filings, this field attracts a lot of newer, inexperienced attorneys. Make sure that the lawyer you decide to hire has years of expertise and is properly licensed. By searching online, you can find background information about lawyers along with client ratings and any disciplinary record an attorney may have.
If you have attempted every option open to you to bring your finances under control, but have been unsuccessful, bankruptcy may be the final option. Try to relax and avoid getting stressed out about your bankruptcy. Valuable information is awaiting your attention within the following paragraphs.
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