Unfortunately, bankruptcy today is something that is becoming very common. Thank you, economy! Find out about all the personal bankruptcy laws in your state before filing. Read on to find insightful tips and information about bankruptcy filing.
Think twice if you have struck upon the idea of paying off your taxes by credit card and subsequently filing for personal bankruptcy. In some places the debt can not be discharged, and you may still need to pay the IRS afterward. If the tax can be discharged, so can the debt. So, in short, do not use your credit cards to pay off debts right before you file for bankruptcy.
Don’t hesitate to give your attorney a heads-up about something she has missed. Don’t assume that he will remember something you told him weeks ago. It’s your financial future that is in his hands; don’t hesitate to speak up.
Prior to putting in the bankruptcy paperwork, determine what assets are protected from seizure. The Bankruptcy Code contains a list of various assets that are excluded from bankruptcy. It is vital that you know the things on this list prior to filing for bankruptcy, in order to determine which of your possessions will be taken away. If you don’t read this list, there is a chance that you might get nasty surprises when they take your things away.
It is imperative that you retain an experienced attorney if you are planning to file bankruptcy. Filing for bankruptcy is complicated and there is no way you can understand all you need to know. When you engage the services of a bankruptcy lawyer, you can be assured of getting the help your need to proceed correctly.
See if there is an alternative you can use before declaring bankruptcy. For example, you may want to consider a credit counseling plan if you have small debts. You might also be able to negotiate lower payments yourself, but make sure that you get written records of any debt modifications to which you agree.
Protect your house. You don’t have to lose your home just because you are filing for bankruptcy. You can still keep your home, it just depends on your specific situation and the value of your home. If you meet certain criteria, you may be able to retain ownership of your home even after filing for bankruptcy.
Know and understand the difference between filing for Chapter 7 bankruptcy versus Chapter 13 bankruptcy. Do some research about these options so you can choose the best one. Learning about bankruptcy is not simple, so call a bankruptcy attorney to make an appointment to ask questions.
Before declaring bankruptcy, see if there’s anything less drastic you can do to repair your credit. You might be able to address your debts by arranging a repayment plan or a reduction in your interest rates. Get professional advice on these matters from a bankruptcy lawyer. A plan that can be useful when foreclosure is looming is a loan modification. The lender may be willing to reduce interest rates, eliminate late charges or extend the life of the loan. Making arrangements with the creditors to make reasonable payments towards you debt is a much better plan than bankruptcy because the lender simply wants the loan repaid.
Once you clear the hurdle of filing for bankruptcy, live a little, but not too much. Lots of debtors are stressed out when they’ve come to filing time. Make sure you take care of your part and let your attorney do the rest. Your life will most likely improve once you’re over this hump, so relax.
Before you choose Chapter 7 bankruptcy, think about what effect that is going to have on any co-signers you have, which are usually close relatives and friends. When you file under Chapter 7, you will no longer be legally responsible for any debts that were signed by yourself and a co-debtor. Any co-debtor may well be held responsible for paying off the total remaining amount of the debt, though.
In conclusion, bankruptcy is common these days, many times because of the way the economy is. When deciding how to tackle your bankruptcy, make sure that you employ the advice that you read here.