When a person needs to file for personal bankruptcy, it is not ever a happy moment. The embarrassment can be overwhelming when friends discover your poor financial position. Don’t let bankruptcy overwhelm you; the article below can help.
Personal Bankruptcy
Make certain that you comprehend everything regarding personal bankruptcy by studying online. The U.S. Department of Justice, the American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys, all provide valuable information. You will find that the process of filing for personal bankruptcy is easier and less of a hassle with the more information on the subject you gather ahead of time.
You should avoid paying your taxes with credit cards and then immediately file for bankruptcy. In most states, this debt won’t be discharged, and you could end up owing the IRS a whole lot more. If the tax can be discharged, so can the debt. So, there’s no reason to make use of a credit cards if it will not be discharged in bankruptcy.
Before you proceed with your personal bankruptcy case, review your decisions to be certain that the choice you are making is the right. You have better options. For example, you could try credit counseling. Bankruptcy will leave a permanent scar on your credit report and before you take this huge step, you should search through every available option first, to help try and limit the damage to your credit.
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. Regardless of the agency you file with, ensure that you tell them all they should know about your current financial situation, regardless of how good or bad it is. Being honest is both the right thing to do and, moreover, it is required by law.
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. If you are not sure about the current laws all you have to do is look into what laws have been passed.
Before making the decision to file for bankruptcy, be sure you have considered alternative options. If you owe small amounts of money, you can join a counseling program or straighten your finances out by yourself. 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.
Learn and gain a firm grasp of the differences in applying for Chapter 7 bankruptcies versus Chapter 13 bankruptcies. Research them online to see the positive and negative aspects of each one. Do not hesitate to have your lawyer explain any details that seem difficult to grasp. This will help ensure you make the right choice when filing.
Determine if bankruptcy is necessary. Maybe you can just consolidate debt to make it simpler to deal with. It is not a quick and easy process to file for bankruptcy. Your future credit will be affected by these actions. This is why you must ensure that bankruptcy is the only option left for you.
Chapter 13
Research Chapter 13 bankruptcy, and see if it might be right for you. With a regular income and unsecured debt below $250,000, Chapter 13 is probably best for you. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. This plan usually lasts from 3 to 5 years, after which, you will be discharged from all unsecured debt. Keep in mind that even missing one payment can be enough for your whole case to get dismissed.
Spending time with the people you love is something you should do now. The bankruptcy process can be brutal. It takes time and a lot of people feel stressed and ashamed throughout this procedure. Some folks tend to stay in the shadows until their case has concluded. Do not isolate yourself or you will put yourself at risk for depression. Spend time with your family, talk about your problems and find things that relax you.
Depending on your current financial situation, it may or may not be necessary for you to file for bankruptcy. Use the tips you just read to make the best decision possible. Begin today with what you learned here and soon you will see positive changes in your financial situation, so you can avoid the harmful process of filing for bankruptcy.
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