Are your debts out of control and you think that your only escape is bankruptcy? Don’t feel bad, you are in good company. Many people, over the past few difficult years, have found that bankruptcy is the only way to get out from under their mountain of debt. This article will give you the information you need to make your bankruptcy go smoothly.
Make certain that you comprehend everything regarding personal bankruptcy by studying online. The United States Department of Justice, the American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys, all provide valuable information. The more you know about it, the better you are able to make the best decision for your situation and to make sure that the bankruptcy proceedings move forward with minimal setbacks.
Do not use a credit card to manage your tax issues and then try to file bankruptcy. In most states, you will still owe money to the IRS and have to take care of the interest of your credit cards. The rule here is that if you can get the tax discharged then you can get the debt discharged. So as you can see, in this situation there is no need to use the card when the debt will be discharged when you file for bankruptcy.
Don’t be reluctant to remind your lawyer about specific details he may not remember. Many times a lawyer may forget a key detail; therefore, it is important to remind your lawyer of any key information. Speak up. This is your life, and your future depends on it.
Although you can find many bankruptcy attorneys listed in your local Yellow Pages or online, it’s best if you can find one through the personal recommendation of a friend, family member or acquaintance. There are various companies that prey on the financially desperate, so you need to find someone you can trust to ensure the process goes smoothly,
Most bankruptcy lawyers give free consultation, so try to meet with these types of lawyers before deciding on hiring one. Never settle for speaking with a paralegal or an assistant. They are not trained, nor allowed, to pass on legal advice. Seeking out different attorneys is all part of the process until you find someone that you can trust.
There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. Take time to research this online and see the pros and cons for filing each one. Engage your attorney in a conversation about each type, and ask him to answer any questions you may have before deciding which kind is right for you.
Chapter 13 Bankruptcy
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. Chapter 13 bankruptcy is a good choice for people whose unsecured debts amount to lower than $250,000 and who receive a regular income. This will allow you to keep your personal property and real estate and repay your debts via a debt consolidation plan. This lasts for three to five years and after this, your unsecured debt will be discharged. Remember that you must make every payment. Missing even one could cause the court to dismiss your case.
If your paycheck is larger than your debts, avoid filing for bankruptcy. Understand that while declaring bankruptcy will eliminate many of your debts, you will have difficulty obtaining credit and will pay more in interest for the credit you do receive for at least seven years.
Do not think of filing for personal bankruptcy as a shameful thing. This process is less that glamorous, and it makes most people lose their self-esteem. However, having this feeling about yourself isn’t going to help anybody, and your health could even be compromised. The best way of dealing with bankruptcy is to keep a positive attitude during this time of financial upset.
Include your entire financial information when you file for bankruptcy. Forgetting anything can cause a delay, or even a dismissal. All financial information needs to be considered by the court. This may include secondary employments, vehicles you own and loans you still owe money on.
Make sure you know what you should be doing when you file for bankruptcy. The bankruptcy code contains several provisions that can raise serious obstacles in your case. Mistakes can also have your case dismissed. Before you begin bankruptcy proceedings, research as much as you can. This will help your process go smoother.
Exhaust all other option prior to filing personal bankruptcy. One option to consider is credit counseling. There are non-profit organizations that you can use. They can speak with your creditor about getting your payments and interest reduced. You will pay them, and in turn, they will pay the people you owe money to.
Before you file for personal bankruptcy, take great care in paying off your debts. The laws regarding bankruptcy most often prevent you from paying back some creditors for up to 90 days before filing, and friends and family for up to one year. Do your research and figure out the laws for you.
It is important not to delay the process of determining whether or not you should file for bankruptcy. Filing for bankruptcy is a hard decision to make but if you wait too long, your situation will get worse. If you talk to a financial professional, they can assess your situation and give you suggestions on what could solve the problem.
As you can see, you are not alone in your need to fix your finances by choosing bankruptcy. Having read this article, you should feel better prepared to navigate this process. Use these tips to have a smooth bankruptcy.
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