Just the thought of bankruptcy creeping up on you, can make you fearful to say the least. Growing debt, along with insufficient income to support a family, can make life seem unbearable. If you’re afraid of this scenario (or worse if you are living at), it is our sincere hope that the advice given here will be of help to you.
Don’t use credit cards to pay your taxes if you’re going to file bankruptcy. The fact is that the credit card debt will be ineligible for discharge, and your tax debt may increase. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. Therefore, you should not pull your credit card out for purchases if it is just going to be discharged during the bankruptcy.
Don’t be reluctant to remind your lawyer about specific details he may not remember. Chances are that you may have forgotten to tell them about certain specifics that may be important to your filing. Be as open as you can be to make sure your bankruptcy goes as well as possible.
Rather than checking online, try to get recommendations from friends or family about a suitable bankruptcy attorney. Don’t allow yourself to be taken advantage of by predatory lawyers just because you are filing for bankruptcy. It is important to find someone trustworthy.
When filing for bankruptcy it is crucial that you are candid and not concealing any liabilities or assets, as it will only show up in the future. Your bankruptcy lawyer has to know every detail of your finances, whether bad or good. Don’t hold anything back and formulate a smart strategy to deal with the reality you are facing.
If you are meeting with a lawyer to discuss bankruptcy, the initial consultation should be free so ask every question you have. Nearly all attorneys offer free initial consultations, so you should be able to meet with a few before you make a final hiring decision. Decide which lawyer you like best buy reviewing all of the lawyers’ answers to your questions. Choose the lawyer who addressed your issues the best. After the consultation, you are not immediately required to come up with a decision. You could even go to different lawyers for advice.
Prior to declaring bankruptcy you really need to be sure that you’ve exhausted all your other options first. For example, if your debt is small, try a type of consumer counseling program. It is sometimes possible to negotiate smaller payment by yourself. If you do this, make sure you save a written record of debt modifications that are negotiated.
Prior to choosing a bankruptcy attorney, seek a free consultation with at least three attorneys. Ensure that your meeting is actually with the attorney, not with a paralegal or an assistant. People in these positions are unable to offer legal advice. Hiring a lawyer could help you become comfortable with the legal things that you will encounter.
Do what you can to keep your home. You don’t have to lose your home just because you are filing for bankruptcy. You can still keep your home, it just depends on your specific situation and the value of your home. Otherwise, look into the homestead exemption which may allow you to stay in your home if you meet financial threshold requirements.
Ensure that you bankruptcy is your best choice. Consider whether debt consolidation may be a more viable alternative. Filing a claim can take a long time and cause much stress. Remember that your credit will be affected by the mark of personal bankruptcy for a long time. This is why you must ensure that bankruptcy is the only option left for you.
Unsecured Debt
Research Chapter 13 bankruptcy, and see if it might be right for you. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. This allows you to keep possession of your real estate and property and repay your debt through a debt plan. These kinds of plans usually range across 3, 4 and 5 years. Once this is done, all your unsecured debt will get discharged. However, if you miss even one payment, the court will dismiss your entire case.
People who say that bankruptcy is a scary experience aren’t exaggerating. You may have lived in fear of it before, but you no longer have to now, thanks to this article. Utilize these tips immediately to improve your financial situation.
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