A lot of people today have sunk into debt. They are harassed by collection agencies and creditors and their bills are not being paid down. If you find yourself in this type of financial trouble, you might want to consider filing for bankruptcy. Continue on to the article to find out if bankruptcy is something you need to consider.
Think twice if you have struck upon the idea of paying off your taxes by credit card and subsequently filing for personal bankruptcy. In most states, this debt won’t be discharged, and you could end up owing the IRS a whole lot more. Should the tax be dischargeable, the debt is often dischargeable as well. There isn’t any reason to use a credit card to pay the tax bill since the bill can be discharged anyway.
When choosing a bankruptcy lawyer, the best way to go is off of a personal recommendation instead of simply flipping through the phone book. There are way too many people ready to take advantage of financially-strapped individuals, and it’s important to be sure your bankruptcy can go smoothly; take your time and choose someone you can trust.
Make sure you meet with a licensed attorney rather than a paralegal or assistant, as these people are not allowed to provide legal advice.
You might experience trouble with getting unsecured credit after filing for bankruptcy. If this happens, instead you should turn your attention to secured credit cards. By doing this, you will be letting people know that you want to fix your credit score. Eventually, you could be able to obtain unsecured credit.
Bankruptcy filings don’t necessarily mean that you have to end in the loss of your home. Depending on whether the value of your home has decreased or if you have a second mortgage on the home, you may very well end up being able to keep your home. You may also want to check out the homestead exemption either way just in case.
Understand the differences between a Chapter 7 bankruptcy and Chapter 13 bankruptcy.Take the time to learn about them extensively, and look at the advantages and disadvantages of each.If the information you read is unclear to you, talk to your attorney before making that serious decision.
Don’t pay to for an initial consultation with a bankruptcy attorney, and thoroughly question each candidate. Most lawyers offer free consultations, so talk to a few before making your decision. Make a decision when all your concerns and questions have been addressed well by one lawyer in particular. Take your time choosing the right attorney to assist in your bankruptcy. This will give you extra time to interview several attorneys.
In order for this to be considered, your car loan must be one with high interest, have a higher interest loan for it as well as a consistent work history.
Before you choose Chapter 7 bankruptcy, consider how it could affect other people on your credit accounts, as your family and friends may be affected. However, anyone sharing the loan with you may be forced to pay back the entire amount for the amount in full, they will be required to pay the debt.
Research Chapter 13 bankruptcy, and see if it might be right for you. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. The benefit of this plan is that you retain personal belongings and private real estate and your debts are repaid by an organized payment plan. Generally, this stays in effect for up to 5 years. Afterwards, your unsecured debts clear from your accounts. However, if you are unable to properly commit to the plan you agree to, your case can be dismissed.
Know your rights that you have as you file for bankruptcy.Some bill collectors will try to tell you your debts can’t be bankrupted. There are a few debts that cannot be cleared, such as child support or student loan debt, that can’t be bankrupted. If a collector tries to convince you that some other type of debt, such as a credit card, is non-discharagable, report the collection agency to the attorney general’s office in your state.
Personal Bankruptcy
If concerned about keeping possessions like a car, find out if your attorney can reduce the payment. Chapter seven bankruptcy often provides for the lowering of payments. If you meet the criteria specific to your state, it may be a good option to consider.
Gain all the knowledge of personal bankruptcy that you file. There are many traps in the personal bankruptcy code that could trip up your case. Some mistakes can even lead to having your case being dismissed. Make sure you have a decent understanding of the bankruptcy before you make any final decisions.This can save you a lot of time and make the process much simpler.
This could be considered as fraud, and you will be required to pay that money back.
Be certain to create a list that displays all the debts you want discharged when you file. Anything not specifically listed on the filing will be excluded in the final bankruptcy. You should have everything in writing with dates and signatures to prove that your debts have been discharged, or you could be asked to pay these debts.
Be careful on how you pay off any of your debts before you file for bankruptcy. Bankruptcy rules generally outlaw repayment of creditors in the 90 days leading up to a bankruptcy filing, such as the previous 90 days worth of credit card debt. Know the laws prior to deciding what you jump in feet first.
As you now know, there is help out there for you if you want to file for bankruptcy. If you go into the process armed with knowledge and confidence, you can wipe away your debt and give yourself a fresh start.
If your finances are tight and you are considering filing for personal bankruptcy, why not put your plans for getting a divorce on the back burner? Divorcing will only complicate your financial situation. You may find that both you and your spouse must file for bankruptcy following divorce. Rethink getting divorced, if possible.