You are not alone if you have become a victim of debt. It seems that they can never pay their bills down, and they’re constantly pursued by collection agencies and creditors. If this description applies to you, you may wish to think about filing for personal bankruptcy. Read the following paragraphs to decide if this path is one that you should take.
Don’t use credit cards to pay your taxes if you’re going to file bankruptcy. In some places the debt can not be discharged, and you may still need to pay the IRS afterward. If the tax has the ability to be eliminated, the debt can be too. So, there is no reason to use your credit card if it will be discharged in the bankruptcy.
Be brutally honest when you file for bankruptcy, as hiding assets or liabilities, will only come back to haunt you. The person you choose to file with needs to know both the good and bad aspects of your finances. Put everything out on the table and craft a wise plan for handling the situation the best you can.
Stay positive. Bankruptcy might help you get back things you thought you’d lost and had repossessed, such as electronics, vehicles and jewelry. If it has been 90 days or less between the repossession of your property and your filing, you might be able to get your property back. Consult with a lawyer who can help you along with filing the petition.
Bankruptcy Laws
Before you file, make sure you understand current bankruptcy laws. Bankruptcy laws are in constant flux, so just because you knew the law last year doesn’t mean that the laws will be the same this year. To stay up-to-date on these laws, check out your state’s government website.
Since the majority of attorneys are willing to provide no-cost initial consultations, it is smart to meet with more than one before you make a selection. Just be sure that the person you speak with really is the lawyer, rather than a paralegal, since they cannot legally give advice. Interviewing multiple attorneys is a good way to find the best fit.
If you are making more money than you owe, bankruptcy should not even be an option. Although bankruptcy may feel like a simple method of getting out of your large debt, it leaves a permanent mark on your credit history for up to 10 years.
Once the initial filing period is over, ensure that you are getting out and enjoying life. It is common for people to stress when filing. That stress can cause depression, if you don’t take care to avoid it. Once the process is complete your life will improve.
Chapter 7
Take into consideration all the ramifications of a Chapter 7 bankruptcy. Filing for this can impact any co-debtors, such as friends or family. You can relieve yourself of any liability for debts that you may share with someone else through a Chapter 7 filing. This does not dissolve any co-signers of the debt, and your creditors will continue to try and collect from them.
Keep the concept of shame out of your head if you are contemplating bankruptcy. Filing for bankruptcy leads people to feel all sorts of emotions like shame, guilt and feeling irresponsible. Continuing to let yourself feel that way can damage your emotional health and does not benefit you in your endeavors to deal with your financial situation. Staying positive and upbeat is the proper way to deal with bankruptcy.
Do not wait until things go from bad to worse before filing bankruptcy. It is all too common for people to hope that their financial difficulties will disappear if they don’t give them any attention. If you have failed to make payments for several months but have continued making purchases on credit, your petition may be denied. The minute you realize that your debts are too big to take care of, contact a bankruptcy attorney to discuss your options.
Before filing personal bankruptcy, consider other options. You might want to look into the possibility of credit counseling instead. There are a lot of organizations that are non-profits and can assist you. They can speak with your creditor about getting your payments and interest reduced. You pay them and then they pay the creditors.
You need to start getting responsible with your money even before you file for bankruptcy. The period before your filing is not the time to run up additional debts. Both creditors and judges take a look at what you are doing now, as well as what you have done in the past. Having recent good financial behavior, regardless of how short of a time period, is better than no good behavior at all.
You do not lose everything that you own when you decide to declare bankruptcy. You will be able to keep personal property. Items like clothes, electronics, household furnishings, and jewelry are included in that category. Depending on the state you are from, what kind of bankruptcy you’re filing, and your specific case, you could be allowed to keep bigger items, like your car or house.
You have undoubtedly gleaned from the text above that bankruptcy doesn’t have to be a difficult process as long as you’re informed. If you take a rational, methodical approach, you’ll soon be experiencing the fresh start you’ve been waiting for.
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