The Good And The Bad Aspects Of Filing For Personal Bankruptcy
Posted at by PConran on category BankruptcyFiling for bankruptcy can be difficult, but in the end it can actually make your life easier. You will be forced to expose your financial life to outsiders and you will have to sift through all of your assets and obligations. However, once the bankruptcy gets discharged, you can begin to create a better financial situation while all those harassing bill collector phone calls stop. Read on for advice on easing the pain of bankruptcy.
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 D.O.J., the A.B.I and the N.A.C.B.A. are all useful organizations willing to provide educational material. 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.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. In a lot of places, the debt cannot be discharged, and you may still owe money to the IRS. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. Therefore, you should not pull your credit card out for purchases if it is just going to be discharged during the bankruptcy.
Before filing for bankruptcy, hire a qualified attorney. There are a lot of things to do during bankruptcy and that may be hard for you to understand on your own. A qualified bankruptcy attorney can guide you through the filing process.
Make certain that you comprehend the differences between Chapters 7 and 13. In Chapter 7 most of your outstanding accounts will essentially be erased. Your ties with all creditors will get dissolved. With a Chapter 13 bankruptcy, you will have to make payments for 5 years before the debts are forgiven. 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.
If your paycheck is larger than your debts, avoid filing for bankruptcy. Though bankruptcy may appear to be a good way to escape your debts, it does affect your credit negatively for a fairly long time.
File when the time is perfectly right. They say timing is everything, and this rings true when filing for bankruptcy. In some situations it is best to file as soon as possible, but in other situations it is best to wait until after you’ve gotten through the worst of it. Speak with a lawyer specializing in bankruptcy in order to learn when you should file your petition.
Keep the concept of shame out of your head if you are contemplating bankruptcy. You may need to get credit counseling or simply learn how to balance your budget. Continuing to let yourself feel that way can damage your emotional health and does not benefit you in your endeavors to deal with your financial situation. A good way to deal with bankruptcy is to make sure that you keep a stiff upper lip.
Because of the comes from bankruptcy, you may feel overwhelmed and stressed. To relieve yourself of some stress and keep thing organized, hire a good lawyer. Don’t make your choice to retain a particular lawyer simply because they are the cheapest. It is not necessary to engage the lawyer who charges the highest fees; all you need is a lawyer of high quality. Ask for referrals from folks who have filed and check reputations with the BBB. You might even go to a bankruptcy hearing to watch how a lawyer presents his case.
Bankruptcy is both a good and a bad thing; it depends on perspective. No matter why you are filing, good information is needed. These tips can make dealing with bankruptcy easier. Use the tips presented here to help the process goes smoothly and more comfortably.