A lot of folks in modern times are deep in debt. They have lots of collection agencies looking for them and they have trouble paying their bills. If this sounds a lot like your personal situation, you may have started thinking about filing for bankruptcy. Read on to learn if bankruptcy is the best decision for you.
Do some research online about personal bankruptcy to get a better idea of what this procedure implies. The US Run a quick Internet search to find out all the different agencies you should be contacting or visiting via the web to find out what you can. The more you know, the better prepared you will be to make the best decisions and ensure that your bankruptcy goes smoothly.
Do not attempt to pay your taxes with your credit cards and subsequently file for bankruptcy. The fact is that the credit card debt will be ineligible for discharge, and your tax debt may increase. Remember that if you can discharge the tax you can discharge the debt. If you live in an area where tax can be discharged through bankruptcy, financing your tax bill is pretty pointless.
Credit History
Think through your decision to file for bankruptcy carefully before going ahead with it. You can also avail yourself of other options, such as consumer credit counseling. Bankruptcy is a serious negative on your credit history so make sure you have no other options before you file. It is important to keep your credit history as positive as possible.
It is essential that you are honest and forthright in the documentation you provide for your bankruptcy filings. As long as you are not hiding income or assets from the courts, you can ensure that there are no difficulties with your petition. This will save you from having your petition dismissed and your debts dropped from re-filing.
It can be difficult to obtain unsecured credit once you have filed for bankruptcy. If that is the case, you should try applying for one, or two secured cards. They offer you the chance to demonstrate the seriousness with which you now take your financial obligations. When you have done well with secured cards for a while, you should be able to obtain an unsecured credit card.
No matter what, don’t give up! If you’ve had collateral, such as a car, electronics, or jewelry repossessed for non-payment, you might be able to recover the property when you file for bankruptcy. There is a chance that you can get back your property if it has been less than ninety days since repossession. Speak with your attorney about filing the correct petition to get your property back.
Never pay to have a consultation with a lawyer, and ask a lot of questions. Most attorneys offer free consultations, so meet with a number of them before you retain one. Make a choice only if you have received good answers to all the questions and concerns you brought to the table. It is not necessary to come to a decision immediately following the meeting. Take the time to meet with a number of attorneys.
If you’re filing for bankruptcy soon, be sure you are going to hire a lawyer. Having a lawyer on your side is the best way to avoid mistakes and bad decisions. A qualified bankruptcy attorney can guide you through the filing process.
Don’t be tempted to race toward a bankruptcy without taking time to make sure it is the right thing for you to do. Perhaps just consolidating some of your existing debt, could make them easier to manage. There is not easy process associated with personal 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
Learn what you can about Chapter 13 bankruptcies. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. This will allow you to keep your personal property and real estate and repay your debts via a debt consolidation plan. Typically, this goes on for roughly three to five years, and once this time has expired, your unsecured debt is eliminated. Stay mindful that should you for any reason miss even one plan payment, your whole case is going to get thrown out by the court system.
Remember to spend some quality time with your loved ones. Going through a bankruptcy can be an excruciating experience. It’s generally stressful, lengthy and can make people feel guilty, ashamed, and unworthy. Avoidance of friends of family during the process is not uncommon. You shouldn’t do this, though, as staying away from the world can amplify any emotional issue you are having, and they could even morph into full-blown clinical depression. Because of this, you need to make sure you spend as much time as you can with your family and friends, even if you are ashamed of your finances.
If your vehicle is in question, perhaps your attorney can assist in lowering your payments. Chapter 7 bankruptcy is one of the most common and effective. Your car must have been purchased more than 910 days prior to filing, be a high interest loan, and you must have had a steady work history for this to work.
If you are filing for bankruptcy, it is imperative that you have a good understanding of your rights. Some debtors will try to tell you your debt with them can not be bankrupted. Only a few kinds of debt, like student loans or child support, are ineligible for bankruptcy. If a debt collector tells you this false information, seek the advice of your bankruptcy attorney. You may also want to report the bill collector to the attorney general’s office.
Now you know that there’s so much assistance out there when it comes to filing for bankruptcy. If you approach this with a clear mind and in the right way, it can give you the debt relief that you have longed for and will enable you to get back on your feet.
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