Things That You Can Do To Avoid Filing Personal Bankruptcy
Posted at by PConran on category BankruptcyJust thinking about bankruptcy is a scary thought for many people. Not being able to provide for their loved ones and debt that continues to mount is an issue for many. If these circumstances sound familiar, you stand to benefit from the tips that follow.
Do not even think about paying your taxes with credit and petitioning for bankruptcy right after. The fact is that the credit card debt will be ineligible for discharge, and your tax debt may increase. Generally speaking, debt incurred to pay taxes and the tax bills themselves are treated the same in a bankruptcy. So as you can see, in this situation there is no need to use the card when the debt will be discharged when you file for bankruptcy.
Try to get a bankruptcy lawyer that your friends recommend, as opposed to someone that you find from the Internet or yellow pages. Companies are constantly popping up, claiming to help, yet only seek to profit from your misery. In ensuring that your bankruptcy is as simple as possible, trusting your attorney makes a big difference.
Don’t try to hide anything if you are filing for bankruptcy, as this will hurt you in the long run. It is important that you are completely transparent, showing everything financial that needs to be known. Divulge all of your information so that you and your lawyer can devise the best strategy for dealing with your situation.
If you are considering filing for bankruptcy you definitely need to hire an attorney. The topic of bankruptcy is a complicated one and it is important that you know all about it. Choose an attorney versed in personal bankruptcy to make sure you don’t make mistakes.
It is wise to meet with several lawyers before making a final decision, take advantage of the free consultations to find one that is a good fit for you. Always ensure that the person you meet with is a real lawyer, not a legal assistant or paralegal. These people can’t give legal advice. Seeking out different attorneys is all part of the process until you find someone that you can trust.
Safeguard your home. Filing for bankruptcy does not mean you have to lose your home. For instance, if your home value has dropped recently, or even if you happen to hold a second mortgage, you may not necessarily lose the home. Otherwise, look into the homestead exemption which may allow you to stay in your home if you meet financial threshold requirements.
Determine if bankruptcy is necessary. Maybe you can just consolidate debt to make it simpler to deal with. It can be quite stressful to undergo the lengthy process of filing for personal bankruptcy. Remember that your credit will be affected by the mark of personal bankruptcy for a long time. Before you decide to file for bankruptcy you want to be absolutely certain that it is the only way to resolve your problems.
Consider if Chapter 13 bankruptcy is an option. With a regular income and unsecured debt below $250,000, Chapter 13 is probably best for you. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. That plan lasts approximately three to five years, and then you are discharged from unsecured debt. Keep in mind that missed payments will trigger dismissal of your case.
Find out about lowering the cost of the payment you pay monthly on your car, if you are afraid of losing it. It is possible to get your car payment lowered if you file using Chapter 7. There are certain requirements and restrictions such as a loan that has a high interest rate, cars purchased 910 days before you file, and a steady job history that can help you keep your vehicle.
People fear bankruptcy with good reason. It is a pretty daunting process to go through. Don’t let your fear take over. You now have the knowledge necessary to overcome the fear. Start making use of this bankruptcy advice right now and give your financial life a fresh new start.