If your car or other valuable items are about to be repossessed due to back taxes, you are probably quite afraid of what will happen. Put a stop to harassment by creditors and blaze a trail to a new financial future by declaring bankruptcy. Continue reading for some useful tips to help guide you through this potentially stressful process.
Never shirk on the truth in your petition for bankruptcy. Remember that if you hide your valuable assets or income from your bankruptcy trustee, you may risk a number of penalties and complications. Among these is the possibility that you could be blocked from ever filing again.
Try going to a personally recommended bankruptcy lawyer instead of using a phone book or the Internet. Companies are constantly popping up, claiming to help, yet only seek to profit from your misery. In ensuring that your bankruptcy is as simple as possible, trusting your attorney makes a big difference.
Know and understand the difference between filing for Chapter 7 bankruptcy versus Chapter 13 bankruptcy. Take the time to learn about them extensively, and then figure out which one will be best for your particular situation. If the information you read is unclear to you, take the time to go over the specifics with your lawyer before making a decision on which type you will want to file.
Don’t file for bankruptcy if it is not completely necessary. It might be possible to consolidate some of your debt instead. Filling for bankruptcy could be a long and stressful process. In addition to the stress associated with bankruptcy, you will also have to deal with severely restricted credit in the future. Therefore, you need to be sure that you really have no other option than to file for bankruptcy.
Chapter 13
Learn what you can about Chapter 13 bankruptcies. You are probably eligible for Chapter 13 if your income is consistent and your unsecured debt is under $250,000. Not only can you repay your debts through consolidation, personal property can be kept, as well as real estate. The window for Chapter 13 repayments is typically 3-5 years. At the end of this time, any unsecured debt is discharged. However, if you are unable to properly commit to the plan you agree to, your case can be dismissed.
Being with the people who you love should be still be a top priority. The process for bankruptcy can be hard. Having to declare bankruptcy leaves many people feeling like a failure. Some folks tend to stay in the shadows until their case has concluded. This is not a good idea because staying alone could cause serious problems with depression. So, even though you may be ashamed of the situation you are in, you should still be around those you love.
Don’t file bankruptcy if you can afford to pay your debts. The cost to your credit history far outweighs the simplicity of the easy-out bankruptcy. This is a hard pill to swallow for many.
Going through bankruptcy is tough and can be mentally and emotionally draining. To avoid getting too stressed, make sure you hire a reputable bankruptcy attorney. Do not solely use cost to determine whom to hire. When it comes to choosing the right attorney, consider quality before cost. Look to the bureau for better business, consultation, as well as others who have formerly experienced bankruptcy for more information about lawyers. It is even possible to watch a court hearing in order to see how well an attorney handles a case.
Bankruptcy should be your last resort. Keep in mind that services that promise debt consolidation are usually scams that make your financial problems worse. Keep these tips in mind so you can avoid debt in the future.
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