Bankruptcy: Is It Right For You?
Posted at by PConran on category BankruptcyBeing in debt can be extremely stressful. Once you realize how much in debt you are, it can make you lose your focus on everything else in life. When you find yourself in that position, it is not so simple to repair. The article you are about to read will give you advice on dealing with your debts through bankruptcy.
Don’t use a credit card to pay off your taxes before filing for bankruptcy. Most states do not look at this debt as chargeable, and you could end up owing money to the IRS. One thing that you should remember is that if your tax is dischargable, your debt will also be dischargeable. Just because your credit card could be discharged in bankruptcy does not mean you should use it.
Try to make certain you are making the right choice prior to filing your petition. There are plenty of other options open to you, 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.
Make sure you keep reminding your attorney about any important details in your case. It is wrong to assume that your lawyer will remember every word you ever utter! Do not hesitate to speak up; this is your hearing and your future is on the line.
Educate yourself about state bankruptcy laws and possible outcomes before filing your petition. These kinds of laws are constantly changing and it is important that you are aware of these changes, so that you can learn how to properly file for bankruptcy. A qualified bankruptcy attorney is the best source for the latest information regarding the laws in your state.
Before you decide to declare bankruptcy, make sure that a less-drastic solution isn’t more appropriate. If you owe small amounts of money, you can join a counseling program or straighten your finances out by yourself. You may have the ability to negotiate much lower payments, just be sure any debt modifications you agree to are written and that you have a copy.
Take advantage of the opportunity to consult with a number of bankruptcy lawyers who offer the first visit at no charge. Talk to the lawyer and not his assistant, who may not be legally able to help you. Searching for the best lawyer will help you located the comfort you need during this time.
Consider Chapter 13 bankruptcy for your filing. If you owe an amount under $250,000 and have a consistent income source, Chapter 13 may be right for you. When you file for Chapter 13, you can use the debt consolidation plan to repay your debts, while retaining your real estate and your personal property. 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 fail to make any of the payments on time, the court may dismiss your case.
It can be easy for life to feel like it is spinning out of control when you are having financial troubles. This guide has given you great pointers on the things that you could do to have control over your finances as you face bankruptcy. Apply the advice from this article and you will be on your way to realizing financial freedom.