While bankruptcy is often a last-resort measure, sometimes it’s simply unavoidable. Although bankruptcy tends to destroy a person’s credit, it’s occasionally the only available option. Continue reading this article to understand what you need to know about bankruptcy and the likely end result of going through one.
One of the best ways to learn more about the bankruptcy process is to hit the Internet and look up reputable bankruptcy websites. Many sites, including the U.S. 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. The greater your body of knowledge, the better prepared you will be to make the decision of whether or not to file and to make certain that if you do file, the process is a smooth one.
Do not attempt to pay your taxes with your credit cards and subsequently file for bankruptcy. 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. The rule here is that if you can get the tax discharged then you can get the debt discharged. There isn’t any reason to use a credit card to pay the tax bill since the bill can be discharged anyway.
Don’t be afraid to remind your attorney of certain details in your case. Don’t assume that they will recall every detail that you go over with them without a friendly reminder. Speak up if something is troubling you, as this is your future we are talking about here.
Bankruptcy Laws
Educate yourself about state bankruptcy laws and possible outcomes before filing your petition. Bankruptcy laws are always changing, and you need to be aware of any changes so your bankruptcy can be properly filed. All of these changes will be addressed on the state’s legislative site. You can also contact them directly by phone or office visit.
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. Looking for an attorney will help you find a lawyer you feel good around.
There are many ways to resolve financial difficulties other than bankruptcy, and you should investigate all of them first. You might be able to address your debts by arranging a repayment plan or a reduction in your interest rates. Get professional advice on these matters from a bankruptcy lawyer. Look into loan modification plans if you need to deal with an imminent 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. Above all else, what creditors want is to get their money. Sometimes they would rather settle for a repayment plan instead of a debtor who is bankrupt.
If concerned about keeping possessions like a car, find out if your attorney can reduce the payment. A lot of the time you can lower payments by filing for Chapter 7 bankruptcy. The car loan must have been initiated prior to 910 days before your petition. It must carry a loan with high interest. You should also have a steady history of work.
Financial Information
Make a comprehensive list of all of your financial information before you file for bankruptcy. If you don’t do this, your file could be delayed or dismissed. Even if you believe that certain financial information is inconsequential, do not avoid including it in your documentation. This may include secondary employments, vehicles you own and loans you still owe money on.
Research the rules and regulations of personal bankruptcy before you file. You need to be aware of any issues you will encounter with the bankruptcy code. Making mistakes can have an effect on the outcome of your case. Prior to filing any papers, learn about your rights and responsibilities when filing for personal bankruptcy. The entire process will be much easier when you move forward with awareness.
If you intend to file bankruptcy soon, you may want to discontinue paying all debts. You may find that bankruptcy law prohibits you from paying back some types of creditors for 90 days before you file, and a year for family members. You need to know the law before you decide to file for bankruptcy.
Quickly decide to start being more fiscally responsible prior to filing. The period before your filing is not the time to run up additional debts. Judges and bankruptcy trustees take your repayment history into account when deciding the terms of your bankruptcy. You need to show the judge that you are responsible by making good, present financial choices.
We would like to reiterate that you always have the option of filing for personal bankruptcy. Given that fact, it should be your last resort due to the consequences involved. Don’t sit back and let the process take control of you. Take control of the process by doing your research so that you don’t lose more than you need to.
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