Are you having financial problems and think bankruptcy is the lone choice you have? Don’t worry, you are not alone. There are thousands of people who file for bankruptcy every day. The following article offers many great tips on bankruptcy that can be very helpful when faced with this situation.
Do not even think about paying your taxes with credit and petitioning for bankruptcy right after. Most of the time, you cannot discharge this debt. As a result, you will owe the IRS a lot of money. The rule here is that if you can get the tax discharged then you can get the debt discharged. There isn’t any reason to use a credit card to pay the tax bill since the bill can be discharged anyway.
Retirement Funds
When it soaks in that filing for personal bankruptcy, don’t use all of your retirement funds, or all of your savings to resolve insolvency or pay creditors. Avoid ever touching retirement funds until you have no other choice. Though you may need to use a bit of your savings, try hard to maintain some of your reserves so that you have some degree of flexibility going forward.
If you know people who have filed for bankruptcy, ask them who they would recommend rather than relying on Internet reviews or worse, just randomly picking someone out of the phone book. You want your bankruptcy to go smoothly, and the Internet is rife with fly-by-night companies whose only goal is to prey upon the financially desperate.
If you are about to file for bankruptcy, then make sure you hire a lawyer. Personal bankruptcies are detailed and complex processes, and you may miss something that costs you money. A qualified bankruptcy attorney will guide you through the steps and help you do everything properly.
Most bankruptcy lawyers offer a free consultation, so meet with several before you decide on one. Be certain to speak with an attorney, not their paralegal or law clerk, since they cannot give legal advice. By shopping lawyers, you will be more likely to find one that makes you comfortable about the process.
Filing Bankruptcy
It is important to protect your home when filing bankruptcy. Filing bankruptcy does not necessarily mean that you will lose your house. You could keep your home; it depends on your home’s value or if a second mortgage is on your home. Check to see if you pass the requirements necessary to file for a homestead exemption.
Become knowledgeable in regards to details about chapter seven bankruptcy vs. chapter 13 bankruptcy. Take the time to find out about each one online, and look at the advantages and disadvantages of each. If you’re really not sure how this all works after your research, meet with your lawyer and ask them prior to making a decision.
Chapter 13
Thing about filing a Chapter 13 bankruptcy. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. It usually takes three to five years to fulfill this plan. When the time is up, you’re unsecured debts will be discharged. Missing a payment under these plans can result in total dismissal by the courts.
Spend time with friends and family to keep your stress levels to a minimum through the bankruptcy filing process. The process for bankruptcy can be brutal. It is long, stressful and makes people feel like losers. Lots of people decide they should hide from everyone else until it is all over. Do not isolate yourself or you will put yourself at risk for depression. This is the reason that you need to take the time out to spend time with everyone you love despite what your financial situation is.
Rest assured, when you file for Chapter 13 bankruptcy, you still have the ability to take out mortgage and car loans. But, it could be harder. Your bankruptcy custodian will need to approve the loan. When meeting with the trustee, bring a budget which shows that you will be able to afford the payment on the loan you are trying to get. It will also be necessary to show why a new purchase needs to be made.
Avoid using bankruptcy as a last resort. Do not avoid your creditors; they will not go away. It is important to decide on a course of action as soon as you begin experiencing financial problems. Debt could become uncontrollable and by not dealing with them properly, your wages could be garnished or you may find your home in foreclosure. Once you’ve decided that you can’t manage your large amount of debt, it’s time to contact a qualified attorney.
Do a little bit of research into the regulations having to do with filing for bankruptcy before you begin the process. The bankruptcy code contains several provisions that can raise serious obstacles in your case. Some mistakes in your papers can cause your case to be dismissed. Take time to research things related to personal bankruptcy before you move forward. The proceedings will be much smoother with this information.
Consider any other options available before filing for personal bankruptcy. Have you been through credit counseling first? You can easily find non-profits that can assist you in your debt struggles. They can work with the creditors to lower payments and interest. Often, they make the payments to your creditors, and you make your payment to them.
As you can see, you are not alone in your need to fix your finances by choosing bankruptcy. However, you can be better armed by using the tips you have found here. Put the tips you learned into action so that you can ensure your bankruptcy process moves along without trouble.
This is a limited-time offer. We are not able to guarantee availability if you wait!
