Bankruptcy can be both a relief and a stressful situation. The stress is having to deal with your financial crisis and those involved in the process. The relief is that your phone will stop ringing with harassing phone calls from debt collectors, and you can begin to rebuild your credit. Here are some great tips for making bankruptcy easier.
Knowledge is power when you’re considering bankrupcy; there are many websites available to help you. The US Department of Justice and National Association for Consumer Bankruptcy Attorneys provide excellent information. 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. You will find few states that discharge this kind of debt. You may also wind up owing a lot of money to the IRS. Bear this in mind; if the tax can be discharged, then the debt can be as well. Just because your credit card could be discharged in bankruptcy does not mean you should use it.
Although you can find many bankruptcy attorneys listed in your local Yellow Pages or online, it’s best if you can find one through the personal recommendation of a friend, family member or acquaintance. There are lots of unsavory companies and lawyers out there who prey on people who are in desperate straits. It is up to you to find someone that is trustworthy and can make the process go smoothly.
Free Consultation
You should never pay for your first consultation with a bankruptcy attorney. Make the most of this free consultation by asking lots of questions. Most attorneys offer a free consultation which you should take advantage of. Meet with a few before finalizing your plans. Only choose an attorney once all your concerns are answered to your satisfaction. There is no need to offer an immediate hire, so take your time. This will give you extra time to interview several attorneys.
Always make your loved ones a priority. The process for bankruptcy can be hard. It can be long and drawn out which adds lots of stress and leaves people feeling empty inside. Most people adopt a very negative attitude toward bankruptcy. This isn’t true though because when you isolate yourself you will just start to feel worse and may become depressed. It’s imperative that you spend as much time with loved ones as you can, even in the midst of your financial dilemma.
If your vehicle is in question, perhaps your attorney can assist in lowering your payments. Filing for Chapter 7 can help to lower your monthly payments on possessions such as your vehicle, helping to ease your financial load. You need to have bought your car 910 days before you file, have a loan with high interest and you’re also going to need a good work history.
Your trustee may be able to help you secure an auto loan or get a mortgage even though you have filed Chapter 13. There are extra hoops to jump through. You will have to see your trustee and the approval for this new loan. Draft a personal budget to show that you will be able to repay your new loan. You will need to be able to explain why the purchase is necessary.
Filing for bankruptcy is hard on anyone, and can cause extreme amounts of stress. By hiring a competent attorney, you can alleviate some of that stress. Don’t allow cost to determine who you hire. Your lawyer does not necessarily have to be the most expensive one; however, you should be certain of his or her qualifications and abilities. You can get good information about attorneys from friends,the internet and free consultations that most attorneys provide. If you want to know more about a specific lawyer, attend a court proceeding and see how the attorney handles herself.
Bankruptcy is characterized by both positive and negative aspects. No matter your reason for going through with it, remember that information is essential to the whole process. The tips contained in this article will make filing for bankruptcy easier to handle. If you use these tips, you can file for bankruptcy with the confidence that only information can instill.
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