If you are considering filing for bankruptcy, your life probably hasn’t been so great recently, but that doesn’t mean things can’t improve once you file. The main purpose of filing is to start a new and improved financial situation. This article will show you how you can make the best of bankruptcy rather than dwelling on the circumstances that got you there in the first place.
One of the best ways to learn more about the bankruptcy process is to hit the Internet and look up reputable bankruptcy websites. The United States Department of Justice, NACBA, and American Bankruptcy Institute websites are all great places to go for up-to-date information. The greater your body of knowledge, the better prepared you will be to make the decision of whether or not to file and to make certain that if you do file, the process is a smooth one.
Credit Card
If you are thinking about paying off your tax obligations with a credit card and then filing bankruptcy, think again. In a lot of places, the debt cannot be discharged, and you may still owe money to the IRS. Generally speaking, debt incurred to pay taxes and the tax bills themselves are treated the same in a bankruptcy. Thus, it doesn’t make sense to use a credit card when it is going to be discharged when you file for bankruptcy.
Be certain you are making the right choice before you file for bankruptcy. It is possible to take advantage of other options, like consumer credit counseling. Since your credit history will forever note the bankruptcy, you want to make sure that you have tried everything else before you take an action such as this, in order to minimize the effect it will have with regard to your credit history.
If you are going through a bankruptcy do not fall victim to guilt and pay off debts that you do not need to pay. 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 avoid telling your lawyer specific details with your case. Don’t just assume they already know and that they have these important details committed to memory or written down. All information submitted to the court with your signature needs to be double checked.
Before making the decision to file for bankruptcy, be sure you have considered alternative options. For example, consumer credit counseling programs can help if your debt isn’t too large. It is sometimes possible to negotiate smaller payment by yourself. If you do this, make sure you save a written record of debt modifications that are negotiated.
Protect your house. Just because you’re going bankrupt doesn’t mean that you also have to be homeless! You can still keep your home, it just depends on your specific situation and the value of your home. Check to see if you pass the requirements necessary to file for a homestead exemption.
Reducing Interest Rates
You should weigh every option before thinking about bankruptcy. A lawyer that specializes in bankruptcy law can help advise you of other options, such as repayment plans and reducing interest rates to relieve some of the burden. If you are about to lose your house, talk to your lender about a loan modification. The lender is able to help you in a number of ways, such as reducing interest rates, eliminating late charges, and even lengthening the loan, giving you more time to pay. Remember that creditors desire to get paid and usually debt repayments are often preferable when dealing with bankrupt debtors.
Speak with an attorney about any fears you have about losing your car. You may even be able to get your monthly payment reduced. You can often lower your payment using Chapter 7 bankruptcy. There are certain requirements and restrictions such as a loan that has a high interest rate, cars purchased 910 days before you file, and a steady job history that can help you keep your vehicle.
If you have to file for bankruptcy, ensure that you supply all your financial information. If you forget to add these, your petition could be delayed or dismissed. Even small amounts of money contribute to your overall financial picture, so do not exclude them. This type of income could come from doing odd jobs, extra cars or outstanding loans.
Consider any other options available before filing for personal bankruptcy. Credit counseling is an important option for you to pursue. You can easily find non-profits that can assist you in your debt struggles. These companies work with creditors to reduce your payments and interest. Once you pay them, they make the payments to your creditors.
Judging from the information contained within the article alone, you can now see that there are ways to get out from under the piling debt. Yet after bankruptcy, you can be happy again. Bankruptcy is not the end. Follow the tips given here in order to make it a new beginning.
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