The economy is terrible today. In a weak economy, many people find themselves out of work and accumulating debt. Debts can result in filing for bankruptcy, which can seem to be a terrible thing. When you or a loved one is contemplating bankruptcy, it is important to read the following piece in order to understand available alternatives.
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. Bear this in mind; if the tax can be discharged, then the debt can be as well. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.
When you feel certain that you must file for personal bankruptcy, refrain from squandering your life savings to pay off unsecured debt. You should not use your retirement savings unless the situation calls for it. If you do have to dig into your savings, make sure that you leave enough to sustain you and your family for a couple of months.
Don’t be afraid to remind your lawyer about important aspects of your case. Do not assume that if you’ve already told him or her something important once, that they will remember it later without a reminder. All information submitted to the court with your signature needs to be double checked.
Do not give up hope. Many times you can get repossess property back once bankruptcy has been filed. 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 advise you on what you need to do to file a petition.
Never pay to have a consultation with a lawyer, and ask a lot of questions. Most lawyers provide a consultation for free, so consult with many of them before picking which one you want to hire. Don’t hire an attorney who fails to address all your concerns and questions. You do not have to give them your decision right after the consultation. So, this gives you plenty of time to consult with several attorneys.
Put forth the effort to grasp the distinctions between Chapter 7 and Chapter 13 bankruptcies. Weigh all the information you can find on- and off-line to make an educated decision. Ask your bankruptcy lawyer to clarify anything you don’t understand before making a final decision about which type of bankruptcy to file.
Before you file for bankruptcy, make sure you absolutely need to. You may be able to get away with going through debt consolidation to help make the payments easier to deal with. A bankruptcy filing takes a great deal of time, and it can be extremely stressful. You will have trouble getting credit down the line. Therefore, you need to be sure that you really have no other option than to file for bankruptcy.
Loved Ones
Spend time with friends and family to keep your stress levels to a minimum through the bankruptcy filing process. The whole process of filing for bankruptcy is hard. It is lengthy, stressful and often leaves people feeling ashamed, unworthy and guilty. It is not uncommon for a person to feel the need to pull away from loved ones during the process. Washing yourself in self-pity will only make the situation worse and can leave you feeling very depressed. It’s crucial to spend time with loved ones despite your present financial situation.
If you are concerned about keeping your car, check with your attorney about lowering the monthly payment. In many cases, you can reduce your payment by filing a Chapter 7 petition. 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.
The economic recovery has bypassed many people, leaving their finances in disarray. Even without steady income, there are things you can do to avoid bankruptcy. It is our sincere hope that this article has helped you to determine a way to avoid filing for personal bankruptcy yourself, or will help a friend or loved one avoid this fate. Good luck.
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