Why Personal Bankruptcy Is The Best Choice For Some

You may feel quite frightened of the IRS if they threaten to repossess the things that are important to you, such as your jewelry or your car. Filing for bankruptcy can help ease your financial burdens and put an end to harassing phone calls from debt collectors. Keep reading to gain useful insight about navigating the process.

One of the most important things to remember when filing for bankruptcy is to be honest and truthful every step of the way. You might feel tempted to not declare certain assets in your bankruptcy in order to protect them from forfeiture, but if you’re found out, the process could take longer, or worse, you might be banned from filing for bankruptcy completely.

Find a bankruptcy attorney who offers free consultations, and ask lots of questions. It is a good idea to consult several attorney before deciding on one. Make a choice only if you have received good answers to all the questions and concerns you brought to the table. It is not necessary to make a final decision right away. So you have sufficient time to speak with a number of lawyers.

See if there is an alternative you can use before declaring bankruptcy. For example, consumer credit counseling services can often help you figure out a workable repayment plan with creditors. 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.

Chapter 7

There are two types of personal bankruptcy: Chapter 7 and Chapter 13. Make sure you know what each entails so you can make the right choice. Chapter 7 bankruptcy is intended to wipe out all outstanding debts. You will no longer be liable for any money that you owe to your creditors. If you file using chapter 13 bankruptcy, you will go through a sixty month repayment plan prior to all your debts being completely dissolved. It is important that you understand the differences between the different types of bankruptcy, so that you can decide which option is best for you.

Prior to choosing a bankruptcy attorney, seek a free consultation with at least three attorneys. 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 It will be important to work with a bankruptcy lawyer that you feel comfortable with; a little comparison shopping will help you find the right one.

It is important to look at your financial situation from all possible angles before you decide to file for bankruptcy. Instead of rushing into bankruptcy, a good idea is too speak with an attorney who may be able to get your interest rates reduced or help get you on a debt repayment program. Loan modification plans can help if you are dealing with foreclosure. Your lender can adjust your loan in many ways including extending the time you have to pay, reducing your interest rate, or canceling some of your late fees. When all is said and done the creditors just want their money, and more often than not will work with you on a repayment plan.

There are circumstances where you are able to keep your car during a bankruptcy so be sure to ask your lawyer about possibly reducing the payments. It is possible to get your car payment lowered if you file using Chapter 7. You need to have bought your car 910 days before you file, have a loan with high interest and you’re also going to need a good work history.

It is possible to obtain new vehicle and home loans while a Chapter 13 case remains active. It is a little more difficult, though. You need to contact your trustee so you can get approved for a new loan. When you meet with your trustee or financial adviser, make sure that you come up with a sound budget proposal. You’ll also need a valid reason for making the purchase.

When you file for bankruptcy, you should be very aware of your rights. It is not unusual for creditors to claim that their debt is not able to be discharged. There are not many debts that can not be bankrupted, student loans and child support for example. If the bill collector is trying to deceive you, then report that company to your local attorney general’s office.

Of course you could decide to file bankruptcy, but learn of your other choices first. Keep in mind that debt consolidation offers can be scams that do little more than get you into more financial trouble. Use the tips you learned from this article to improve your financial situation and stay away from debt.