Surviving Your Bankruptcy: Helpful Tips And Advice
Posted at by PConran on category BankruptcyBankruptcy is both a stressor and a relief. On one hand, people will be scrutinizing your private financial affairs. On the other, however, after the bankruptcy has been discharged, you can get a fresh start and begin to re-build your credit. You can make bankruptcy easier with the following tips.
Individuals often seek to file for personal bankruptcy protection if their debts exceed their ability to repay them. If this is the case for you, you should begin to investigate the legislation in your state. Each state has its own set of rules regarding bankruptcy. In some areas, your residence may be completely exempt, but in others, it will not be. Be sure to have some familiarity with the law in your jurisdiction.
Think twice if you have struck upon the idea of paying off your taxes by credit card and subsequently filing for personal bankruptcy. Most states do not look at this debt as chargeable, and you could end up owing money to the IRS. If the tax can be discharged, so can the debt. So, there’s no reason to make use of a credit cards if it will not be discharged in bankruptcy.
It is important to list all your assets and liabilities during the bankruptcy proceeding. Failure to do so will only cause you problems in the end. Whomever you use to file with must know everything there is to know about your finances, both good and bad. Do not hold anything in secret and create a strategy on how you will deal with the things you are facing.
Keep working to improve your situation. Certain property cannot be repossessed while you are in the process of filing for bankruptcy so be sure to learn about the laws in your state. Filing for bankruptcy may allow you to regain ownership of recently repossessed property. Get help from your lawyer to file a petition so you can get your items back.
Many bankruptcy attorneys offer the first consultation with no charge, so consult with several before deciding on one. Be certain to speak with an attorney, not their paralegal or law clerk, since they cannot give legal advice. Looking for an attorney will help you find a lawyer you feel good around.
Before filing a bankruptcy claim, make sure that your home is well protected. Filing for bankruptcy does not guarantee that you will lose your house. 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. If you meet certain criteria, you may be able to retain ownership of your home even after filing for bankruptcy.
Put forth the effort to grasp the distinctions between Chapter 7 and Chapter 13 bankruptcies. Take time to research this online and see the pros and cons for filing each one. Ask your bankruptcy lawyer to clarify anything you don’t understand before making a final decision about which type of bankruptcy to file.
Think about all the choices available to you when you file for bankruptcy. Ask a bankruptcy lawyer if a debt repayment plan or rate reduction would be of benefit. Loan modification plans can help if you are dealing with foreclosure. There are a lot of ways that your lender can assist you, such as reducing interest rates, eliminating late fees, or extending the term of your loan. Remember that creditors desire to get paid and usually debt repayments are often preferable when dealing with bankrupt debtors.
Bankruptcy is characterized by both positive and negative aspects. Remember that whatever reason you have for taking this step, education is your best weapon during the process. You will have an easier time with your bankruptcy filing thanks to this article’s tips. Incorporate these tips into the process and watch how much better you feel.