Though making the choice to file bankruptcy is never easy, it is often essential. This decision may not be easy, but it is comparatively easier when you know what the process entails and how to navigate it. Continue to read this article to learn what has helped others who have filed for bankruptcy.
Think twice if you have struck upon the idea of paying off your taxes by credit card and subsequently filing for personal bankruptcy. In some places the debt can not be discharged, and you may still need to pay the IRS afterward. A common rule is that dischargeable tax means dischargeable debt. Therefore, you should not pull your credit card out for purchases if it is just going to be discharged during the bankruptcy.
As filing bankruptcy becomes more of a reality, don’t use your entire savings or your retirement funds to pay creditors or attempt to resolve insolvency. You should not use your retirement savings unless the situation calls for it. While dipping into your savings is likely to be necessary, avoid wiping it out completely to prevent leaving yourself with little financial security in the future.
Don’t hide assets or liabilities when filing for bankruptcy. Whomever you plan to use should know a lot about the finances that you have, both the good and the bad. You are in this situation, now help them to give you the best assistance possible to deal with it. You do that by giving full disclosure and holding nothing back.
Talk to a lot of different bankruptcy lawyers; most of them will give you a free consultation. Ask to speak with the licensed attorney and not a representative, who can not offer legitimate legal counsel. Be sure to check out a number of lawyers so that you will find one who is just right for you.
Interest Rates
There are many ways to resolve financial difficulties other than bankruptcy, and you should investigate all of them first. You can get your interest rates reduced or enter into a debt repayment plan. Before you file bankruptcy, ask your attorney if any of these are viable alternatives for you. If a foreclosure is your reason for filing look into your options with your bank first, such as a loan modification. This type of plan allows your lender to work with you eliminating charges, extending your loan, and lowering interest rates to help you pay back the loan without drowning in debt. Making arrangements with the creditors to make reasonable payments towards you debt is a much better plan than bankruptcy because the lender simply wants the loan repaid.
Never forget that you still deserve to enjoy life while you go through the bankruptcy process. It can be several months between the initial filing and the final discharge of debts. Don’t let the process control you in a negative way. You will get through it, and you should make an effort to remember that. Life is going to get better once you get through this.
Talk to an attorney about reducing your car payments so that you can keep your vehicle. Sometimes, as part of the bankruptcy filing, your auto loan can be restructured so that you pay less each month. The requirements are that your car purchase has to be greater than 910 days before filing, must have a loan that is high in interest, and must have a solid work history.
File when the time is right. Timing is very important when it comes to personal bankruptcy filings. Sometimes, filing as soon as you can is best, while other times, it is wise to get past the worst problems first. Speak to a bankruptcy lawyer to determine what the ideal timing is for your personal situation.
Going through bankruptcy is tough and can be mentally and emotionally draining. Be certain that you hire a competent lawyer to minimize the stress and anxiety you are under. Don’t make your choice to retain a particular lawyer simply because they are the cheapest. You don’t have to use the most expensive attorney; you just need a good quality attorney. Get referrals from those who have used a bankruptcy lawyer, talk to the bureau for better business, and take advantage of free consultations offered by most lawyers. You can attend court hearings if you want to see a prospective attorney in action.
No one is eager to file for bankruptcy, but in many cases, the alternatives are even worse. Here you have found some great advice and help to guide you in your bankruptcy. Know that you are not the first, and surely not the last. Learning from others who have filed for bankruptcy is the best way to ensure that you make intelligent decisions and avoid making any mistakes.
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