Lots of people look down upon bankruptcy, but when they are forced to claim it, they sing a different tune. A simple change of circumstances, such as job loss, can quickly change a life to the point where bankruptcy may be the only way out. Whatever your reasons for filing bankruptcy, the article below can help.
A lot of people find themselves needing to file bankruptcy when they are unable to pay their bills. If you’re in this position, it is a good thing to familiarize yourself with the laws that apply in your area. Different states have different laws regarding bankruptcy. Your house is safe in certain states; however, in other states, it isn’t. It is important to be cognizant of the laws in your state before filing for bankruptcy.
It’s important that you understand what bankruptcy is and how it will change your life before you attempt to file a claim. The United States Department of Justice, NACBA, and American Bankruptcy Institute websites are all great places to go for up-to-date information. By being well armed with the correct knowledge, you can be certain of the decision that you have made. Additionally, you will understand the processes necessary to conduct your personal bankruptcy matters in a smooth manner.
If you are thinking about paying off your tax obligations with a credit card and then filing bankruptcy, think again. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS. If the tax has the ability to be eliminated, the debt can be too. So as you can see, in this situation there is no need to use the card when the debt will be discharged when you file for bankruptcy.
Be sure to bring anything up repeatedly if you are unsure if your lawyer is focusing on it. Inaccurate or incomplete information can lead to your petition being denied. Speak up, because it is your future on the line.
Credit Card
Getting unsecured credit post-bankruptcy will likely be difficult. If so, apply for a secured credit card. Having a credit card of any type will allow creditors to realize that you’re attempting to work in the right direction to repair your credit. Eventually, you could be able to obtain unsecured credit.
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. Don’t withhold information, and create a smart way of coping with the reality of the situation.
You can take steps to hang onto your house. Filing for bankruptcy does not mean you have to lose your home. It may be possible to keep your home if the value has depreciated, or there is a second mortgage. Additionally, some states have homestead exemptions that might let you keep your home, provided you meet certain requirements.
Debt Repayment Plan
Before ultimately deciding whether or not to file for bankruptcy, be sure to weigh the different options available to you. 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 foreclosure is imminent, see if your loan can be altered at all through a modification plan. These plans allow you a longer pay off period by extending the term of the loan, reducing the rate of interest or forgiving late fees. At the end of the day, creditors want to get paid, and sometimes a debt repayment plan is preferable to dealing with a bankrupt debtor.
Speak with your attorney about ways you can keep your car. Often, you can negotiate a lower payment through bankruptcy. 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.
Make sure you act at an appropriate time. The timing of your filing could be important to its success. Sometimes, it is good to file immediately, but sometimes it is smarter to wait until you have passed through the worst of things. Speak with a bankruptcy lawyer to discuss the proper timing for you to file bankruptcy.
If you have attempted every single option for dealing with your finances and you still come up dry, then you may have to file for bankruptcy. Try to relax and avoid getting stressed out about your bankruptcy. Although the bankruptcy process can last several months, you will be less stressed out if you understand everything that is happening.
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