Filing for bankruptcy can relieve you of one kind of financial stress, but it provides you with new stresses, too. You will have to thoroughly review your finances and allow strangers to scrutinize them even harder; this is naturally stressful. However, when your bankruptcy is over, you can re-establish your finances and no longer need to tolerate bill collectors. Here are some great tips for making bankruptcy easier.
Don’t pay tax requirements with your credit cards with the thought of starting the bankruptcy process afterward, without doing your research first. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. Bear this in mind; if the tax can be discharged, then the debt can be as well. Thus, it doesn’t make sense to use a credit card when it is going to be discharged when you file for bankruptcy.
Always be honest with the information you give about your finances. You must avoid the temptation to conceal any valuables, money or other assets from the courts. If they find that you have lied, you may be faced with fines, penalties or the inability to file in the future.
Consider other alternatives before filing for bankruptcy. For instance, a consumer credit counseling program may be a better bet if your debts are relatively small. Some creditors will work with you to help you pay off your debt with lower interest rates, lower late fees, or an extended loan period.
A free consultation is standard for bankruptcy attorneys, so shop around before settling on one. Always ensure that the person you meet with is a real lawyer, not a legal assistant or paralegal. These people can’t give legal advice. Taking the time to compare lawyers will ensure that you get a person that you can be yourself around.
Be sure your home is well protected. Filing for bankruptcy does not mean you have to lose your home. You could keep your home; it depends on your home’s value or if a second mortgage is on your home. Check to see if you pass the requirements necessary to file for a homestead exemption.
Understand the differences between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy. Do some research about these options so you can choose the best one. Learning about bankruptcy is not simple, so call a bankruptcy attorney to make an appointment to ask questions.
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. You will have trouble getting credit down the line. Therefore, you must make sure that there is no other option that you could take before you file for bankruptcy.
If you are earning enough to cover your bills, don’t file for bankruptcy. Filing for bankruptcy can really damage your credit in the long run, by staying on your report for up to ten years.
Personal Bankruptcy
There are many ways to resolve financial difficulties other than bankruptcy, and you should investigate all of them first. Some alternatives to filing for personal bankruptcy include debt repayment plans, interest rate reduction plans, and debt consolidation. Talk with the personal bankruptcy lawyer to find out more. Look into loan modification plans if you need to deal with an imminent foreclosure. There are many ways in which a lender can make adjustments that will be helpful to you. Among them are extending the loan, forgiving late charges and reducing the interest rate. 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.
Although the entire process can be stressful, do not allow the stress to take over. The filing process is extremely stressful for a lot of the people who go through it. This stress could morph into clinical depression, if you fail to adequately address the problem. Life will get better; you just need to make it through the bankruptcy process.
Act at the right time. The timing of your filing could be important to its success. There are times when you should file as soon as you can, but in some other situations it may be best to wait for the worst to be over. Speak with a lawyer specializing in bankruptcy in order to learn when you should file your petition.
Facing bankruptcy is not a fun situation and cause a lot of stress and anxiety. You need to do your research to find a good bankruptcy lawyer. Do not let price be the only factor. It may be not be necessary to hire a costly attorney; just make sure he or she is qualified to handle your case. Speak with trusted people, check the BBB and take advantage of the free bankruptcy attorney consultations. If you really want to check up on them check out how well they do at court hearings.
Bankruptcy is characterized by both positive and negative aspects. No matter why you are filing, you must remember that knowledge is the key to help during the process. The advice you have been provided with has probably helped you better understand bankruptcy. Use the tips presented here to help the process goes smoothly and more comfortably.
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