When Debts Are Overwhelming – Helpful Information On BankruptcyPosted at by PConran on category Bankruptcy
A lot of people are in debt right now. Debt continues to mount while collection phone calls continue to rise. If you are having financial difficulty, it is a good idea to research all your options, including bankruptcy. Continue reading this article to find out if bankruptcy is something you need to consider.
Do not try to get clever by paying your taxes via credit card before you declare bankruptcy in an effort to dodge your tax burden. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS. Should the tax be dischargeable, the debt is often dischargeable as well. 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.
If you are feeling like you are seriously going to have to file for bankruptcy then do not clear out your savings. Retirement funds should be avoided at all costs. Although it is quite normal to use some of your savings, ensure that you leave enough in your account for emergencies.
Never lie about anything in your bankruptcy petition. Remember that if you hide your valuable assets or income from your bankruptcy trustee, you may risk a number of penalties and complications. Among these is the possibility that you could be blocked from ever filing again.
Be warned that after your bankruptcy, you may stand out as a leper to credit institutions. You may be unable to get a simple credit card. If you are in this situation, applying for a secured card may be the answer. This at least shows you are making an honest attempt at reestablishing your credit worthiness. Eventually, you could be able to obtain unsecured credit.
It is imperative that you retain an experienced attorney if you are planning to file bankruptcy. Having a lawyer on your side is the best way to avoid mistakes and bad decisions. When you engage the services of a bankruptcy lawyer, you can be assured of getting the help your need to proceed correctly.
You may have heard bankruptcy referred to differently, either as Chapter 7 or Chapter 13. Learn the differences between the two before filing. Every one of your debts will be gone if you decide to go with Chapter 7. The ties with the creditor will be broken. But, with Chapter 13, you will be in repayment plan for about 5 years prior to any debts you have being totally dissolved. Look into both types of bankruptcy before deciding which one would suit your particular needs.
Protect your house. Filing for bankruptcy will not always result in losing your home. Depending on if your home’s value has gone down or if it has a second mortgage, you might be able to keep it. Another option is the homestead exemption that has certain income and financial requirements, but may also allow you to keep your home.
Put forth the effort to grasp the distinctions between Chapter 7 and Chapter 13 bankruptcies. Be sure you go on the Internet and do your research to see what’s best for you. Learning about bankruptcy is not simple, so call a bankruptcy attorney to make an appointment to ask questions.
Bankruptcy should not be filed by anyone who makes more than their bills cost. Sure, bankruptcy can get rid of that debt, but it comes at the price of poor credit for 7-10 years.
Make sure bankruptcy is truely your only option before filing. Before filing, talk with an attorney who can help you weigh all of your options. Loan modification plans can help if you are dealing with foreclosure. The lender can help your financial situation by getting interest rates lowered, dropping late charges, and in some cases will allow you to pay the loan over a longer period of time. Because of the fact that creditors would like to see their money they are likely to offer repayment plans versus not getting paid at all if you file for bankruptcy.
After reading this article, you now know that there are many options available and possibilities to consider when filing for bankruptcy. With an open mind, you will be able to soon get the help you need to help your financial situation.