Having too much debt can be a frightening experience. It is all too easy to let your debts get out of control and take over your life. Unfortunately, once you’re in this situation, fixing it can be hard. You might consider bankruptcy, look through this article and find out why.
Ask yourself if filing for bankruptcy is truly your best option. You have other choices, including consumer credit counseling. Your credit record will be harmed by a bankruptcy filing, and therefore prior to making such a decision, it is wise to investigate other options in order to minimize the damage you suffer.
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. Generally speaking, debt incurred to pay taxes and the tax bills themselves are treated the same in a bankruptcy. If you live in an area where tax can be discharged through bankruptcy, financing your tax bill is pretty pointless.
It is essential that you are honest and forthright in the documentation you provide for your bankruptcy filings. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
Once you file for bankruptcy, you will have a hard time getting loans or credits. If this happens, instead you should turn your attention to secured credit cards. This demonstrates to creditors that you are making a good faith effort to repair your credit. After a while, you may be able to get unsecured credit again.
Be sure to bring anything up repeatedly if you are unsure if your lawyer is focusing on it. Don’t just assume they already know and that they have these important details committed to memory or written down. It’s your financial future that is in his hands; don’t hesitate to speak up.
You should not have to pay for an initial legal consultation, and such meetings are great opportunities to ask lots of questions. Most attorneys offer free consultations, so meet with a number of them before you retain one. Choose to file only if your lawyer has convinced you that this is the best decision. You do not have to give them your decision right after the consultation. This allows you time to speak with numerous lawyers.
Complex Process
Be as honest as you possibly can when filing for bankruptcy; hiding liabilities or assets will only hurt you in the long run. When you file make sure whoever is handling the process is fully aware of each and every financial detail. Do not hold back anything, and form a sound plan to make peace with your reality.
If you’re going to file bankruptcy, you need an attorney. Bankruptcy is a complex process, and you probably don’t know all the information that is required to navigate it. Your lawyer will make sure that the filings are correct and help you navigate the complex process of filing for bankruptcy.
Safeguard your home. Just because you’re going bankrupt doesn’t mean that you also have to be homeless! There are mitigating factors, such as lose of value, or multiple mortgages. You could also check out the homestead exemption. This lets you continue living in your house, depending on whether you meet certain financial requirements.
Do not abandon hope. When you file for bankruptcy you may be allowed to recover property like your car, electronics or jewelry that might have been repossessed. If it has been fewer than 90 days since you filed for bankruptcy, it is possible for you to get repossessed property back. Discuss your options with a good lawyer who can help you with the filing of your bankruptcy petition.
Before filing bankruptcy consider every available avenue. You may be able to get away with going through debt consolidation to help make the payments easier to deal with. The whole process of filing for bankruptcy can be a long, and hard one. It will certainly affect the credit rating that you have in the future. Personal bankruptcy should be undertaken as a last resort when no other workable options are available to you.
Chapter 13 Bankruptcy
When you do meet with a lawyer make sure that they answer all of your questions and that they do not charge you for consultation alone. Nearly all attorneys offer free initial consultations, so you should be able to meet with a few before you make a final hiring decision. The lawyer who properly answers your questions is the one you should hire. Take your time before you decide to file after you meet with your lawyer. This allows you time to speak with numerous lawyers.
Consider filing for Chapter 13 bankruptcy. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. Chapter 13 bankruptcy permits you to remain the owner of your properties, while allowing you to repay your debt using a debt consolidation loan. Such plans generally take between 3 and 5 years to complete, at which point. a discharge will be granted. 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.
Make sure you consider implications of bankruptcy before filing for Chapter 7. When you file a Chapter 7, your debts will be dissolved. So, in short, if you file bankruptcy, but they do not, they will be held completely responsible for your joint actions.
Before declaring bankruptcy, be sure you’ve weighed other options. For example, consumer credit counseling programs can help if your debt isn’t too large. Also, if you just contact your creditors and speak to them plainly and truthfully, the odds are good that you can negotiate a better payment structure that you can afford.
Filing bankruptcy under Chapter 13 means you can still get a loan for a car or a mortgage. Of course, it’s difficult. You have to meet with your trustee to get approval for the new loan. You need to show them why and how you can handle paying back the new loan. You also have to prepare yourself to explain the reasons you need to buy the item.
Sometimes life just happens and you feel like there is little that you could do about it. Use what you learned from this article to regain control of your financial situation. Incorporate the advice given and see how it can make a huge change in your life.
Since it is possible to obtain a free consultation from the majority of bankruptcy lawyers, meet with a few of them prior to choosing one. Ask to speak with the licensed attorney and not a representative, who can not offer legitimate legal counsel. Interviewing multiple attorneys is a good way to find the best fit.
