Are your debts out of control and you think that your only escape is bankruptcy? Understand that you are not the only one. Many individuals have found personal bankruptcy imperative to solving their financial issues. This article will give you helpful tips to make sure your bankruptcy goes smoothly.
Have a good look around the Internet to see what information is relevant to you regarding bankruptcy. The United States Check out the Bankruptcy Institute site and do some research about consumer’s rights. The more knowledgeable you are, the more you can be sure that you are making the right decision and that you are taking the right steps to ensure your personal bankruptcy goes as smoothly as possible.
Do not use a credit card to pay income taxes and then file for bankruptcy. In most states, this debt won’t be discharged, and you could end up owing the IRS a whole lot more. A common rule is that dischargeable tax means dischargeable debt. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.
Exhaust every other option before making the decision to file for personal bankruptcy. You have other options, including consumer credit counseling help. Bankruptcy is a permanent part of your credit, so before you make such a big decision, you might want to explore all other choices so that your credit history is affected as minimally as possible.
When looking for a lawyer to handle your bankruptcy claim, the best way to go is off of a personal recommendation instead of simply flipping through the phone book. There are way too many people ready to take advantage of financially-strapped individuals, so you must ascertain that your attorney can be trusted.
Learn what you can about Chapter 13 bankruptcies. If you have less than a quarter of a million dollars in debt that is unsecured and a regular income, you are eligible to file a Chapter 13. Filing for this type of debt will ensure that you can hold onto your real estate and personal property, and will let you develop a consolidation plan to pay off your debts. This plan usually lasts from 3 to 5 years, after which, you will be discharged from all unsecured debt. Just ensure that you take necessary precautions, as missing one payment can result in the court dismissing your case.
Make time to visit with family and friends during the bankruptcy process. Undergoing bankruptcy can be a difficult experience. This long and stressful process can leave a person feeling guilt ridden, unworthy and ashamed. Lots of people decide they should hide from everyone else until it is all over. On the other hand, isolation of a self-imposed nature can only worsen your feelings, opening the door to mental depression to join your financial depression. Therefore, it is important that you continue to spend quality time with your loved ones despite, in spite of your current financial situation.
Repayment Plan
It is important to look at your financial situation from all possible angles before you decide to file for bankruptcy. You might be able to address your debts by arranging a repayment plan or a reduction in your interest rates. Get professional advice on these matters from a bankruptcy lawyer. Look into loan modification plans if you need to deal with an imminent foreclosure. Your lender can adjust your loan in many ways including extending the time you have to pay, reducing your interest rate, or canceling some of your late fees. When all is said and done, the creditors want their money, so sometimes it’s best to deal with a repayment plan than with a bankruptcy debtor.
Once you clear the hurdle of filing for bankruptcy, live a little, but not too much. Many people who undergo this process become way too stressed out. Make sure you take care of your part and let your attorney do the rest. Life will get better; you just need to make it through the bankruptcy process.
As stated in the article above, bankruptcy is a common way for many people to alleviate their troubled financial situation. But with the benefit of the information you have here, you have a head start on your journey. Apply the knowledge from this article to go about your bankruptcy in a smooth fashion.
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