If the IRS has begun repossessing your assets, bankruptcy could be of help. Bankruptcy is a major life decision, but sometimes it can be the right choice. The advice below will provide you with all the information you need to understand the results of choosing to file for bankruptcy.
Do some research online about personal bankruptcy to get a better idea of what this procedure implies. Many sites, including the U.S. There is solid advice available from the NACBA, (Consumer Bankruptcy Attorneys’ association) the ABI, (American Bankruptcy Institute) and the United States Department of Justice. The more you know, you can be confident you are choosing the right thing and that you are taking the right road to make sure your bankruptcy proceeds as easily as possible.
Do not hesitate to remind your lawyer of any details regarding your case. Don’t assume that they will recall every detail that you go over with them without a friendly reminder. This is your bankruptcy case, so do not be afraid to remind your lawyer of any key facts.
Instead of relying on random selections from the phone book or Internet, ask around and get personal recommendations. There are a number of companies who may take advantage of your situation, so always work with someone that is trustworthy.
Consider other alternatives before filing for bankruptcy. For example, if you only have a little bit of debt, you might be better off if you went through consumer credit counseling. Some creditors will work with you to help you pay off your debt with lower interest rates, lower late fees, or an extended loan period.
Take advantage of free consultations with lawyers and the ability to sift through and find the right one. Make sure you meet with a licensed attorney rather than a paralegal or assistant, because it is illegal for these people to give legal advice. It will be important to work with a bankruptcy lawyer that you feel comfortable with; a little comparison shopping will help you find the right one.
Chapter 13
Research Chapter 13 bankruptcy, and see if it might be right for you. With a consistent income source and less than $250k in debt, try filing for Chapter 13. When you file for Chapter 13, you can use the debt consolidation plan to repay your debts, while retaining your real estate and your personal property. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. Keep in mind that even missing one payment can be enough for your whole case to get dismissed.
Speak with an attorney about any fears you have about losing your car. You may even be able to get your monthly payment reduced. A lot of the time, your payments may be lowered due to Chapter 7 bankruptcy. But, your car has to have been bought at least 910 days before you file. Also, it must come from a high interest loan and you have to have been consistently working.
File when the time is perfectly right. The timing of your filing could be important to its success. In some cases, you should file for bankruptcy right away, but in others, there may be reasons why filing quickly would be a bad idea. The professional advice of a bankruptcy lawyer can help you pin down the best time to file given your current financial state.
Go ahead and file for personal bankruptcy as soon as you realize it is necessary. A lot of people ignore their financial problems, thinking they are going to go away; that is a big mistake. Yet you can have debtors come after you and potentially take your home if you are not handling your debts properly. As soon as you know that you are too far over your head, make the move to call an attorney skilled in bankruptcy court, to weigh your options.
It goes without saying that, bankruptcy is always available as an option. But, filing ought not to be an automatic decision, as it does have serious implications. Arming yourself with knowledge is a good way to protect assets and approach the process wisely.
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