Nowadays, the economy is not in very good shape. When there is a bad economy there are a lot of people losing their jobs and having problems with debt. The unfortunate result of this is that more and more people are filing for personal bankruptcy. If you or someone you know is in jeopardy of going bankrupt, then read this article to figure out how to get out of this situation.
Do not pay your taxes with credit cards that will be canceled when you file for bankruptcy. In most states, this debt won’t be discharged, and you could end up owing the IRS a whole lot more. Generally speaking, debt incurred to pay taxes and the tax bills themselves are treated the same in a bankruptcy. So it does not help you to put the tax bill on your charge card if you know the debt will be discharged anyway.
Ask yourself if filing for bankruptcy is the right thing to do. You can also avail yourself of other options, such as consumer credit counseling. Bankruptcy has a negative effect on your credit reports, in that it is permanently there. Before you take this step, make sure all your options have been considered.
Check the accuracy of all information before it is filed. Don’t assume that they’ll remember something important later without having a reminder. It is in your best interest to speak out. You are in control of the outcome of your bankruptcy.
Prior to filing for bankruptcy, discover which assets cannot be seized. There are several assets which are exempt from bankruptcy; therefore, consult the Bankruptcy code. Prior to filing for bankruptcy, it is critical that you go over this list, so that you know if you can expect any of your most valuable possessions to be seized. It is important to know what types of possessions may be taken away before they actually are seized.
Make sure you are completely honest when filing for bankruptcy. Hiding your assets is never wise. Your bankruptcy lawyer has to know every detail of your finances, whether bad or good. Never hide anything, and make sure you come up with a well devised plan for dealing with bankruptcy.
Don’t pay for the consultation with a lawyer who practices bankruptcy law; ask a lot of questions. Most lawyers provide a consultation for free, so consult with many of them before picking which one you want to hire. Only choose an attorney once all your concerns are answered to your satisfaction. Take your time before you decide to file after you meet with your lawyer. You have lots of time for consulting with other lawyers.
Free Consultation
A free consultation is standard for bankruptcy attorneys, so shop around before settling on one. Make sure you meet with a licensed attorney rather than a paralegal or assistant, because it is illegal for these people to give legal advice. By meeting with several attorneys through a free consultation you will be able to choose which attorney you feel more comfortable with.
There are two different kinds of personal bankruptcy you can file for: Chapter 7 and Chapter 13. Get a good grasp of the pluses and minuses each type of filing involves by researching both of them extensively. If something doesn’t make sense to you, go over it with your lawyer prior to choosing which one to file.
Don’t hide from your friends and family while you go through bankruptcy. Going through a bankruptcy is never easy. It is lengthy, stressful and often leaves people feeling ashamed, unworthy and guilty. A lot of people hide away until the entire proceedings have been played out. However, you will only feel worse about what has happened, which may lead you into depression. So, even though you may be ashamed of the situation you are in, you should still be around those you love.
If you can afford to pay your bills, bankruptcy is not a wise option. Bankruptcy might seem like a good way to get out of paying your bills, but it will devastate your credit for the next ten years.
Interest Rates
Filing for bankruptcy should not be done on a whim. Speak with an attorney who specializes in bankruptcy to find out if alternatives, such as a debt repayment plan or a reduction of your interest rates, might be better for you. If you are about to lose your house, talk to your lender about a loan modification. The lender may be willing to reduce interest rates, eliminate late charges or extend the life of the loan. Creditors want their money. Often, they are willing to work out repayment plans with you in order to get it.
After you have filed for bankruptcy, enjoy your life. So many people become stressed when they file. It is essential to cope with this stress well, to prevent becoming depressed. Life is going to get better once you get through this.
Banish the word “shame” from your vocabulary before you file for bankruptcy. Going through bankruptcy can cause you to lose a lot of self-esteem. These are useless emotions, however, and can be harmful to your mental state. The best way of dealing with bankruptcy is to keep a positive attitude during this time of financial upset.
Avoid Bankruptcy
As stated from the above article, the economy right now not in the best of shape and lots of people are hurting financially. If you are lacking a steady income, and are facing mounting bills, there are still steps you can take to help avoid bankruptcy. Hopefully you have figured out some ways to avoid bankruptcy for you or someone you know. Let the force be with you.
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