Tips For Successfully Filing The Right Way For Bankruptcy
Posted at by PConran on category BankruptcyWhatever led you to declare bankruptcy is probably very sad, but that doesn’t mean that you can’t have a better life after bankruptcy. The main point is to start over financially. Keep reading to handle the bankruptcy process in a way that is a rebirth and not a financial Armageddon.
You can find a wealth of information concerning personal bankruptcy by searching for websites which offer information about it. Many sites, including the U.S. 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.
Do not consider paying off tax debt with credit cards and filing for bankruptcy afterward. It won’t work. In many areas of the country, this debt will not be dischargeable, and you could be left owing a significant amount to the IRS. If the tax can be discharged, so can the debt. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.
When bankruptcy seem inevitable it is important not to use your retirement funds or emergency savings to pay creditors. Leave your retirement accounts untouched unless there is absolutely no other alternative. You may need to tap your savings, but don’t empty your savings account, as this could leave you in a difficult situation down the road.
Be sure to remind your lawyer if it seems that some details of your situation are forgotten. Just because you have told him something of importance that he will remember it. Speak up if something is troubling you, as this is your future we are talking about here.
Try to find a bankruptcy attorney who is personally recommended, rather than off the Internet, or out of the yellow pages. Don’t allow yourself to be taken advantage of by predatory lawyers just because you are filing for bankruptcy. It is important to find someone trustworthy.
It is important to know how Chapter 7 filings differ from Chapter 13 filings. Investigate the benefits and pitfalls of both. Online resources may be able to provide all the information you need. Go to a specialized lawyer to ask your questions and get some useful advice on what to do.
Consider Chapter 13 bankruptcy, if you chose to file. If you are receiving money on a regular basis and your unsecured debt is under $250,000, you may be able to file Chapter 13 bankruptcy. The benefit of this plan is that you retain personal belongings and private real estate and your debts are repaid by an organized payment plan. This plan usually lasts from 3 to 5 years, after which, you will be discharged from all unsecured debt. Stay mindful that should you for any reason miss even one plan payment, your whole case is going to get thrown out by the court system.
Judging from the information contained within the article alone, you can now see that there are ways to get out from under the piling debt. But, that does not mean that your post-bankruptcy life cannot be fantastic. The truth is, that by using the tips in this piece, it is possible to make bankruptcy a positive experience that gives you the fresh start you need.