The path to bankruptcy is not normally a happy one, but your life can improve once the filing has occurred. The main point is to start over financially. This article will show you how you can make the best of bankruptcy rather than dwelling on the circumstances that got you there in the first place.
Do not use a credit card to pay income taxes and then file for bankruptcy. Most places will not consider the debt dischargeable, meaning you will have to pay the IRS a lot of money. A common rule is that dischargeable tax means dischargeable debt. So, in short, do not use your credit cards to pay off debts right before you file for bankruptcy.
It is important to remind your lawyer of any details that may be important to your case. Many times a lawyer may forget a key detail; therefore, it is important to remind your lawyer of any key information. This is your bankruptcy and your future, so never be nervous about speaking your mind.
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. The lawyer representing you when you file needs to have full knowledge of your financial situation. Divulge all of your information so that you and your lawyer can devise the best strategy for dealing with your situation.
Do not give up. Filing a bankruptcy petition might facilitate the return of your property, including cards, electronics or other items that may have been repossessed. If the repossession occurred within 90 days from your filing date, it is possible that some of your property can be returned to you. Interview and research attorneys before choosing one to help you with your bankruptcy.
You should never pay for your first consultation with a bankruptcy attorney. Make the most of this free consultation by asking lots of questions. It is a good idea to consult several attorney before deciding on one. Only make a decision after you have met with several attorneys and all of your concerns and questions have been addressed. You need not decide right away. You have lots of time for consulting with other lawyers.
Speak to a bankruptcy attorney about what new laws may be going into effect before your bankruptcy filing. This area of law is in constant flux and it is imperative that you know where the law stands at the time you file for your bankruptcy. To stay up-to-date on these laws, check out your state’s government website.
Become knowledgeable in regards to details about chapter seven bankruptcy vs. chapter 13 bankruptcy. Take the time to find out about each one online, and look at the advantages and disadvantages of each. If there is anything that you don’t understand, go over it with your lawyer so that you can make the best decision.
Don’t file bankruptcy if you can afford to pay your debts. Although bankruptcy may feel like a simple method of getting out of your large debt, it leaves a permanent mark on your credit history for up to 10 years.
Interest Rates
Make sure bankruptcy is truely your only option before filing. Instead of rushing into bankruptcy, a good idea is too speak with an attorney who may be able to get your interest rates reduced or help get you on a debt repayment program. Loan modification can help you get out of foreclosure. Your lender can help you get current on your loan by offering you one of a number of modifications, such as getting rid of late charges, lowering interest rates, or extending the length of the loan. When all is said and done, creditors want their money and find repayment plans preferable to not getting paid at all.
If keeping your vehicle is of great concern, ask your lawyer if you can secure a payment modification. Many times, payments can be lowered through Chapter 7 bankruptcy. There are qualifications, such as the loan being high interest and a good work record for this option.
You should never feel shame for needing to file for bankruptcy. Many people feel guilty, embarrassed and unworthy when dealing with bankruptcy. Feelings such as these are not of value to you and it is possible for them to be psychologically harmful. Maintaining a positive outlook during a troublesome financial upheaval is the best way to cope with bankruptcy.
Go ahead and file for personal bankruptcy as soon as you realize it is necessary. Lots of people turn the other shoulder towards their financial woes and hope that they’ll disappear eventually. However, you should never do this. Debt can become a big problem rapidly, and if you fail to handle it, you can face foreclosure or garnishment of wages. You should call a good bankruptcy lawyer and ask for advice as soon as you find your debts have become completely unmanageable.
The events that lead someone to declare bankruptcy can cause great emotional distress. However, the story that gets written after bankruptcy does not have to be depressing too. Using the advice you have found here, bankruptcy can be the beginning of a new, exciting chapter in your life!
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