If you are deeply in debt and considering bankruptcy, take heart. There is a lot of information online that can help you avoid bankruptcy. Read through these tips to avoid going through bankruptcy.
Retirement Accounts
If you are faced with the choice of filing for bankruptcy or using your emergency fund or retirement accounts to pay creditors, opt to file for bankruptcy. Avoid touching your retirement accounts whenever possible. Although it is quite normal to use some of your savings, ensure that you leave enough in your account for emergencies.
If you are seriously thinking of filing bankruptcy, make sure that you contact an attorney. It is difficult to make all of the necessary decisions yourself, and expert guidance will be helpful. When you engage the services of a bankruptcy lawyer, you can be assured of getting the help your need to proceed correctly.
Before you decide to declare bankruptcy, make sure that a less-drastic solution isn’t more appropriate. For example, consumer credit counseling services can often help you figure out a workable repayment plan with creditors. You may have luck negotiating lower payments by dealing directly with creditors, but be sure to document any get and new agreement terms in writing from each creditor.
If you’re unsure, then you need to learn what a Chapter 7 bankruptcy can do for you, as opposed to what Chapter 13 does. Weigh all the information you can find on- and off-line to make an educated decision. If something doesn’t make sense to you, go over it with your lawyer prior to choosing which one to file.
Before filing bankruptcy consider every available avenue. Perhaps just consolidating some of your existing debt, could make them easier to manage. It is not a quick and easy process to file for bankruptcy. It will have a long-lasting effect of your future credit opportunities. Because of this, you need to think of bankruptcy as a nuclear option; that is, a last resort.
Bankruptcy can be overwhelming to most people, and can be quite stressful. By hiring a competent attorney, you can alleviate some of that stress. Don’t let cost be the sole factor in who you hire. While the person you select does not have to cost the most, they should be competent and reliable. Ask for referrals from folks who have filed and check reputations with the BBB. Consider attending a court hearing so you can witness how the lawyer operates.
Know the bankruptcy code backwards and forwards before filing. For instance, for 365 days before filing, no one is able to receive assets from the filer. In addition, it’s unlawful for a filer to acquire more debt on their credit cards before they file.
Consider every option prior to filing for bankruptcy. Think about credit counseling, for example. You can easily find non-profits that can assist you in your debt struggles. These organizations can work with creditors to lower your payments and interest rates. Payments are then made to the creditor via the counseling service.
Make sure you hire a good bankruptcy lawyer. There are a large number of less than credible bankruptcy lawyers out there. The lawyer you choose will need to be experienced and licensed. By researching online you can check out a lawyer’s credentials, as well as customer reviews and any disciplinary action against him or her.
When you file for bankruptcy, you want to be certain that your papers include every debt that you need to get discharged. If you don’t include all your debts, the ones you leave out won’t be covered by the bankruptcy. It’s your responsibility to ensure everything is written down to avoid getting charged for debts that can be discharged.
If you are facing financial difficulty, it may not be wise to go through with a divorce. A lot of people get divorced and immediately have to file for bankruptcy because they didn’t foresee the troubles that were ahead for them financially. Making sure that divorce is a good option is best.
Some attorneys have a free phone service where creditors can be referred when they try to contact you in regards to a delinquent account. All you have to do is provide the number. Your creditor can then call and confirm that this debt is included in your bankruptcy filing. Once this is done, they will cease and desist calling you.
Chapter 13
After you have filed for chapter seven bankruptcy, you may find that you are not qualified to take the homestead exemption. If this is the case, you may wish to file for chapter 13 bankruptcy in regards to your mortgage. Sometimes it is better to switch the whole Chapter 7 case to the Chapter 13 case. Speak with your attorney for advice on this.
Always have a plan for your finances. If it’s possible to get some more time to pay your bills, take it. Remember to keep working towards your goal of avoiding bankruptcy. Start to plan things out on how your future will be.
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