Just thinking about bankruptcy is more than enough to strike substantial fear into anyone’s heart. From fears of growing debt to worrying that they’ll no longer be able to provide for their families, people have good reasons to be scared. If this sounds like you and you are experiencing these feelings right now, the advice here will be of help.
Credit Card
Don’t think that loading up your credit card with tax debt and then filing for bankruptcy is an answer either. Credit card debt is handled charge by charge during bankruptcy, and in most states, tax debt cannot be discharged through bankruptcy. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. So, there is no reason to use your credit card if it will be discharged in the bankruptcy.
Any bankruptcy consultation should be free of charge. Most attorneys offer a free consultation which you should take advantage of. Meet with a few before finalizing your plans. Only choose a lawyer if you feel like your questions were answered. Take your time choosing the right attorney to assist in your bankruptcy. Take the time to meet with a number of attorneys.
Instead of jumping into a bankruptcy filing, be sure your situation requires it. Debt advisors are one of the many other avenues you can consider. Bankruptcy has a negative effect on your credit reports, in that it is permanently there. Before you take this step, make sure all your options have been considered.
One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. 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.
Don’t hesitate to give your attorney a heads-up about something she has missed. Don’t assume that they will recall every detail that you go over with them without a friendly reminder. This is your bankruptcy case, so do not be afraid to remind your lawyer of any key facts.
When a bankruptcy is imminent, retain a lawyer immediately. Bankruptcy is a complex process, and you probably don’t know all the information that is required to navigate it. An attorney that specializes in personal bankruptcy, can help guide you and make sure that your filing happens properly.
Look for a bankruptcy lawyer that comes from a personal recommendation instead of someone random on the Internet or in the yellow pages. You want your bankruptcy to go smoothly, and the Internet is rife with fly-by-night companies whose only goal is to prey upon the financially desperate.
Stay up to date with any new bankruptcy filing laws. Laws are subject to change, and it’s important that you’re educating yourself about current code only. All of these changes will be addressed on the state’s legislative site. You can also contact them directly by phone or office visit.
Meet with a few attorneys who offer free consultations before hiring one. Ensure that you have a meeting with a real lawyer instead of an assistant, since they can provide the best advice. Hiring a lawyer could help you become comfortable with the legal things that you will encounter.
Before you file, make sure you understand current bankruptcy laws. Bankruptcy laws are in constant flux, so just because you knew the law last year doesn’t mean that the laws will be the same this year. All of these changes will be addressed on the state’s legislative site. You can also contact them directly by phone or office visit.
Become knowledgeable in regards to details about chapter seven bankruptcy vs. chapter 13 bankruptcy. By researching each type, you can begin to understand which method is right for you. If anything you see is unclear or doesn’t make sense, go over it again with your attorney before making the final filing decision.
Chapter 13 Bankruptcy
Consider filing using chapter 13 bankruptcy. If you posses a regular source when it comes to income, and you have less than $250,000 of unsecured debt, you could file using Chapter 13 bankruptcy. This lets you keep any real estate and personal property while you repay all your debts through a consolidation program. This repayment period usually lasts from three to five years. If you make your payments faithfully during that time, any remaining unsecured debt will be eliminated. Remember that if you even miss one payment that’s due under this plan, the court could dismiss the whole case.
Make sure that you really need to file for bankruptcy. You may be able to manager gets more easily by consolidating them. It can be quite stressful to undergo the lengthy process of filing for personal bankruptcy. Your credit will be impacted for many years. This is why it is crucial that you explore your other debt relief options first.
Anyone who is wary of filing for bankruptcy has probably heard how frightening the process can be. Now that you have read this article, you now never again have to be scared of bankruptcy. Use the personal bankruptcy information here as you work your way through your financial situation and make your life situation better for you and your family.
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