Most people consider bankruptcy as a choice of losers, but quickly change their mind when it directly affects them. Certain life events can make personal bankruptcy the only viable option available. If that happened to you, you can find some help from the information in this article.
Don’t pay tax requirements with your credit cards with the thought of starting the bankruptcy process afterward, without doing your research first. In most states, you will still owe money to the IRS and have to take care of the interest of your credit cards. Transferring the debt to another medium (e.g. a credit card) won’t magically make a tax debt discharagable, either. Because of this, transferring the debt to your credit card is pointless.
Think through your decision to file for bankruptcy carefully before going ahead with it. Other available options include consumer credit counseling. Be sure to consider all options before filing for personal bankruptcy, as this will take a large toll on your credit score for the next ten years.
If you are going through a bankruptcy do not fall victim to guilt and pay off debts that you do not need to pay. Avoid touching your retirement accounts whenever possible. You may have withdraw from your savings every now and then, but try to leave yourself some financial security for the future.
Always remind your lawyer of specifics that are important to your case. Inaccurate or incomplete information can lead to your petition being denied. All information submitted to the court with your signature needs to be double checked.
When looking for a lawyer to handle your bankruptcy claim, the best way to go is off of a personal recommendation instead of simply flipping through the phone book. To handle your bankruptcy, you need a trusted attorney, not a shady one that is out to take your money.
Talk to a lot of different bankruptcy lawyers; most of them will give you a free consultation. It is important to meet with the actual attorney, not the attorney’s assistant or paralegal; those people are not permitted to give legal advice Take some time to talk to different lawyers to find one that fits your needs, and meshes well with you.
Your most important concern is to protect your home. Bankruptcy filings don’t necessarily have to end in the loss of your home. It is entirely possible that you will be able to keep your home. This is dependent upon the your home’s value and whether or not you have taken a second mortgage. If this is not the case, find out more about Homestead Exemptions you might qualify for if you meet certain financial requirements.
Chapter 13.
Find out more about Chapter 13. 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. This plan usually lasts from 3 to 5 years, after which, you will be discharged from all unsecured debt. Remember that if you fail to make any of the payments on time, the court may dismiss your case.
Understand the rights you have as a bankruptcy filer. Don’t take a debt collectors word for it simply because they tell you that you can’t have many or all of your debts erased by bankruptcy. Only a small number of debts are not dischargeable, including student loans and child support obligations. If you are told differently by a collector, research the information yourself. If you find they are in error, get the name of their company, phone number and any identifying info so you can report it to the attorney general in your area.
Make certain that you are fully aware of each and every bankruptcy law prior to even considering filing. There are many pitfalls you can easily fall into, such as transferring away assets to prevent them from being included in the filing. It is also illegal for someone who files for bankruptcy to drastically increase their debts on credit cards immediately before filing.
Long before you file any paperwork dealing with bankruptcy, your first step should be learning the rules and the process. Without knowing the exact rules, you could inadvertently run into serious issues that could ultimately lead to your bankruptcy failing. There are mistakes that may cause the dismissal of your case. Make sure you check into your case and see that you have the paperwork filled out correctly. This will make things easier in the long run.
You should keep in mind that in the long run, bankruptcy can have a more positive impact on your credit score than continually missing payments towards your debt. Yes, the bankruptcy will stick around for a whole ten years, but the clean slate you get from filing will help you get back on the right track quickly. The key to a bankruptcy is the fresh start you will get from it.
The first step to making your bankruptcy successful is to turn over a new leaf and decide to manage money better. 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. You want to show them that you are doing everything you can to make your situation better.
If you have tried everything you can think of to resolve your financial difficulties, filing for personal bankruptcy may be your only option. If you find that you have no other choice, then do your best to not let bankruptcy to be something to fear. Valuable information is awaiting your attention within the following paragraphs.
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