Many people are quick to judge others badly when they have to declare bankruptcy, yet they are also as quick to change their mind if they are suddenly in that boat. Divorce, job loss and illness can all lead people to certain bankruptcy. Follow the advice presented here if this describes your situation.
Before making the decision to file for bankruptcy, be sure to do some research and learn all you can about the subject. There are many websites available that offer this information. The United States Run a quick Internet search to find out all the different agencies you should be contacting or visiting via the web to find out what you can. The more knowledgeable you are, the more you can be sure that you are making the right decision and that you are taking the right steps to ensure your personal bankruptcy goes as smoothly as possible.
Do not consider paying off tax debt with credit cards and filing for bankruptcy afterward. It won’t work. Credit card debt is handled charge by charge during bankruptcy, and in most states, tax debt cannot be discharged through bankruptcy. If the tax has the ability to be eliminated, the debt can be too. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.
Consider all options before deciding to file for personal bankruptcy. Debt advisors are one of the many other avenues you can consider. Bankruptcy will be on your credit report and affect your credit score for many years to come, so it is a decision that should not be taken lightly. Try to use it as a last resort.
Prior to filing for bankruptcy, determine which assets, if any, are exempt from being seized. Bankruptcy exemptions are properties may not be seized during bankruptcy. You need to compare this list to the assets you own so that you are not surprised when certain assets are seized. If you fail to do so, things could get ugly.
Before making your decision to file for bankruptcy, double-check to see if other, less drastic options could make sense. For example, you may want to consider a credit counseling plan if you have small debts. You might also be able to negotiate lower payments yourself, but make sure that you get written records of any debt modifications to which you agree.
Chapter 13
Research Chapter 13 bankruptcy, and see if it might be right for you. If you owe an amount under $250,000 and have a consistent income source, Chapter 13 may be right for you. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. Just know that missing one payment could cause your case to be dismissed.
Filing for bankruptcy should not be done on a whim. There are many recouses available to help you lower your payments and get back on track. You can apply for a modification of your mortgage if your home is going into foreclosure. 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. Above all else, what creditors want is to get their money. Sometimes they would rather settle for a repayment plan instead of a debtor who is bankrupt.
Don’t let shame consume you during the bankruptcy process. Filing for bankruptcy leads people to feel all sorts of emotions like shame, guilt and feeling irresponsible. Try not to give in to these feelings, as they are of no help to you and they can affect your emotional health. Remembering to stay positive as you go through financial difficulties is a great way to deal with your bankruptcy filing.
If you have attempted every option open to you to bring your finances under control, but have been unsuccessful, bankruptcy may be the final option. Don’t be overly stressed, because there are many things that you don’t have control over. Although the bankruptcy process can last several months, you will be less stressed out if you understand everything that is happening.
This is a limited-time offer. We are not able to guarantee availability if you wait!
