A lot of folks in modern times are deep in debt. The hate answering the phone because many debt collectors call daily, and every trip to the mailbox means another stressful bill. If this sounds like your situation then perhaps filing for bankruptcy may be in the cards for you. Continue reading this article to find out if bankruptcy is something you need to consider.
Don’t pay tax requirements with your credit cards with the thought of starting the bankruptcy process afterward, without doing your research first. Most places will not consider the debt dischargeable, meaning you will have to pay the IRS a lot of money. Transferring the debt to another medium (e.g. a credit card) won’t magically make a tax debt discharagable, either. So it does not help you to put the tax bill on your charge card if you know the debt will be discharged anyway.
You should be able to meet with a specialized lawyer for free to ask your questions. Free consultations are standard practice among bankruptcy lawyers, so interview multiple candidates before making a final decision. Therefore consult with different lawyers and get a feel for them, then decide which one suits your needs You don’t have to make your decision right after this consultation. This will give you extra time to interview several attorneys.
If you are considering filing for bankruptcy you definitely need to hire an attorney. Having a lawyer on your side is the best way to avoid mistakes and bad decisions. A personal bankruptcy attorney can help and guide you along through the bankruptcy process.
Before pulling the trigger on bankruptcy, be sure that other solutions aren’t more appropriate for your case. For example, there are credit counseling services that can help you to deal with smaller amounts of debt. It is also possible to do your own debt negotiations; however, be sure to get everything in writing.
Before filing a bankruptcy claim, make sure that your home is well protected. Losing your home is thought of as common in bankruptcy cases, but it is by no means inevitable. It may be possible to keep your home if the value has depreciated, or there is a second mortgage. Another option is the homestead exemption that has certain income and financial requirements, but may also allow you to keep your home.
Before filing for bankruptcy ensure that the need is there. Some people have great luck with handling debt with debt consolidation, which means taking out only one loan to pay off many loans. The whole process of filing for bankruptcy can be a long, and hard one. Your future credit will be affected by these actions. So, consider bankruptcy only as a last resort when you have no other choice.
If your paycheck is larger than your debts, avoid filing for bankruptcy. Though bankruptcy may appear to be a good way to escape your debts, it does affect your credit negatively for a fairly long time.
Once the initial filing period is over, ensure that you are getting out and enjoying life. Bankruptcy is a stressful process: you will have to go over your bad financial decisions and perhaps feel ashamed about your decision. It is essential to cope with this stress well, to prevent becoming depressed. Once your petition is in the hands of the judge, all you can do is wait.
There are circumstances where you are able to keep your car during a bankruptcy so be sure to ask your lawyer about possibly reducing the payments. Chapter 7 bankruptcy is one of the most common and effective. If you meet the criteria specific to your state, it may be a good option to consider.
You should never feel shame for needing to file for bankruptcy. It is possible for those going through the bankruptcy process to feel unworthy, guilty or ashamed. Wallowing in these emotions benefits no one, and only serve to harm your own mental health. Keep your mindset positive while you work through financial troubles such as bankruptcy to reduce stress and have an easier time coping.
Do not put off filing for bankruptcy. Some people will just ignore their outstanding debts, hoping that someone or something will come and save them, but this never ends well. If debts are not dealt with quickly, things can quickly get out of control. Not only will you be faced with late fees and interest, but you may also be faced with a wage garnishment or foreclosure if you ignore your financial woes. As soon as you discover your debt is getting too big, immediately get hold of a bankruptcy attorney so that you can talk to him or her about your options.
Do not use credit cards for cash advances prior to filing a bankruptcy petition, as it can affect the dischargeability of the debt. This is fraud, and even if your other debts are discharged, you will have to pay the money back.
You are not alone when you are debating filing for bankruptcy. If you open your mind to this process and think clearly, it can lead to better financial situation and leave you in a much better position than before.
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