Filing For Bankruptcy? These Tips Can Help
Posted at by PConran on category BankruptcyMany people are terrified every time to hear the word bankruptcy. The thought of losing their homes and cars and being overcome by debt is something they rightfully fear. If any of this frightens you, or you’re currently living this particular nightmare, then the contents of this article are going to prove of good use to you.
Generally bankruptcy is filed when a person is facing insurmountable debt. If you find yourself going through this, you should know all about the laws that are in your state. Bankruptcy laws vary from state to state. For example, the personal home is exempt from being touched in some states, but not in others. Be sure you educate yourself on local laws prior to filing.
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. Most places will not consider the debt dischargeable, meaning you will have to pay the IRS a lot of money. Bear this in mind; if the tax can be discharged, then the debt can be as well. This makes using a credit care irrelevant, since bankruptcy will discharge it.
Make sure you’ve exhausted all other options prior to declaring bankruptcy. You have other choices, including consumer credit counseling. Be sure to consider all options before filing for personal bankruptcy, as this will take a large toll on your credit score for the next ten years.
Don’t be reluctant to remind your lawyer about specific details he may not remember. Chances are that you may have forgotten to tell them about certain specifics that may be important to your filing. This is your bankruptcy case, so do not be afraid to remind your lawyer of any key facts.
Before you decide to file bankruptcy, be sure to check for any new laws that may apply to your case. Bankruptcy laws are always changing, and you need to be aware of any changes so your bankruptcy can be properly filed. All of these changes will be addressed on the state’s legislative site. You can also contact them directly by phone or office visit.
Most bankruptcy lawyers offer a free consultation, so meet with several before you decide on one. Just be sure that the person you speak with really is the lawyer, rather than a paralegal, since they cannot legally give advice. Shopping around for a lawyer can help you find someone with whom you feel comfortable.
Consider Chapter 13 bankruptcy for your filing. With a regular income and unsecured debt below $250,000, Chapter 13 is probably best for you. This will allow you to keep your personal property and real estate and repay your debts via a debt consolidation plan. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. Remember that missing a payment to the plan will result in your case being dismissed.
Spending time with the people you love is something you should do now. Going through bankruptcy is difficult. It can be long and drawn out which adds lots of stress and leaves people feeling empty inside. It is not uncommon for a person to feel the need to pull away from loved ones during the process. This isn’t true though because when you isolate yourself you will just start to feel worse and may become depressed. Thus, you must keep living your life and socializing with those you love, no matter what is going on with your bankruptcy.
You should weigh every option before thinking about bankruptcy. You may qualify for alternatives such as debt repayment plans or interest rate reductions. Ask your bankruptcy attorney about these options. Loan modification can help you get out of foreclosure. A good lender will be able to assist you in a variety of ways, from getting rid of your late charges to reducing interest rates. You may even be able to get a loan extension, giving you the extra time you need to pay your debt off. Many times creditors are happy to work with you to ensure that you will repay your loan.
Filing for bankruptcy can be a very scary and intimidating experience. That said, the best antidote to fear is information, and this article has given you that in spades. Take this advice to heart, and do everything possible to improve your situation.