Anytime you are faced with the prospects of filing for bankruptcy, it is not a good situation, but there is some light at the end of the tunnel when you get through this process. The whole point is to wipe the slate clean and have a new chance at life. Continue to read this article to learn how good a bankruptcy can end up being for your life.
Once a person’s debts outstrip his or her ability to repay them, bankruptcy may be the only option left. If you find yourself needing to file for bankruptcy it is important to familiarize yourself with the state laws. Every state has a separate law having to do with bankruptcy. For instance, in some states you can keep your home and car, while other states prohibit this. You should be aware of local bankruptcy laws before filing.
Don’t pay tax requirements with your credit cards with the thought of starting the bankruptcy process afterward, without doing your research first. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. This makes using a credit care irrelevant, since bankruptcy will discharge it.
Consider all options before deciding to file for personal bankruptcy. You have other options available like consumer credit counselling services. Before you take the drastic move of filling for bankruptcy and living with a long lasting bad credit history, make sure to consider using another way that may not be as damaging to your credit.
When choosing a bankruptcy lawyer, your best option is to find someone who is recommended by someone you know versus someone who you find online or in the phone book. Don’t be taken in by some fly-by-night company that exists only to profit from the suffering of others. Check out any lawyer you are considering thoroughly before engaging him or her.
Don’t file for bankruptcy until you know what assets of yours can and can’t be seized. Bankruptcy exemptions are properties may not be seized during bankruptcy. Make sure to review the list before filing a claim so you know if your valuables will be subject to seizure. Without reading the list, you may be shocked at which possessions can be taken from you.
Be honest when filing for bankruptcy. Don’t hide liabilities or assets, as they’ll come back and haunt you. The lawyer representing you when you file needs to have full knowledge of your financial situation. Don’t withhold information, and create a smart way of coping with the reality of the situation.
If you are seriously thinking of filing bankruptcy, make sure that you contact an attorney. It is unlikely that you will be able to comprehend all the various rules and regulations involved in bankruptcy law. Your lawyer will make sure that the filings are correct and help you navigate the complex process of filing for bankruptcy.
It is wise to meet with several lawyers before making a final decision, take advantage of the free consultations to find one that is a good fit for you. Meet with the actual lawyer, not a paralegal or assistant, as they’re not allowed to give out legal advice. Take some time to talk to different lawyers to find one that fits your needs, and meshes well with you.
Safeguard your most valuable asset–your home. It isn’t inevitable that you will lose your house when you file for bankruptcy. Depending on whether the value of your home has decreased or if you have a second mortgage on the home, you may end up keeping it. Check to see if you pass the requirements necessary to file for a homestead exemption.
It is important to know how Chapter 7 filings differ from Chapter 13 filings. Learn the benefits and drawbacks of each type before deciding which is right for you. Go to a specialized lawyer to ask your questions and get some useful advice on what to do.
Avoid filing for bankruptcy if you make more money than your monthly bills. Although you may see bankruptcy as a free pass to eliminate your debt, if you can slowly whittle away at your debt with your income, it will be much better than killing your credit score with a bankruptcy filing.
You should weigh every option before thinking about bankruptcy. Find out if you can receive a reduced interest rate or altered repayment plan instead of bankruptcy filing. For example, if you are in talks of foreclosure, you could use a modified loan to overcome your debt. The lender wants their money, so they may be willing to forgive some fees, change the loan term or reduce interest as ways of assisting you. Creditors want to recoup the most money possible from debtors, and they can often get more through debt repayment plans than bankruptcy procedures.
As said previously, a situation leading to bankruptcy can be upsetting. Nonetheless, filing for personal bankruptcy can be a watershed moment. In fact, if you apply the ideas and advice given in this article, you can truly make bankruptcy a turning point in your life towards better days.
This is a limited-time offer. We are not able to guarantee availability if you wait!
