Do You Need Help Filing Bankruptcy? Try These Tips

A lot of people are in debt right now. It seems that they can never pay their bills down, and they’re constantly pursued by collection agencies and creditors. If you are experiencing overwhelming stress due to your financial situation, you might want to think about filing personal bankruptcy. Keep reading to see if this is a viable solution for you.

Do not use a credit card to pay income taxes and then file for bankruptcy. The fact is that the credit card debt will be ineligible for discharge, and your tax debt may increase. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. Thus, it doesn’t make sense to use a credit card when it is going to be discharged when you file for bankruptcy.

One of the most important things to remember when filing for bankruptcy is to be honest and truthful every step of the way. You can lose the right to file bankruptcy now or in the future if you try to withhold information about your assets and income. So it is critical that you disclose everything honestly to to avoid that and any other penalties the trustee might impose if he discovered your attempt to hide information from the court.

Stay abreast of new laws that may affect your bankruptcy if you decide to file. Laws are subject to change, and it’s important that you’re educating yourself about current code only. A qualified bankruptcy attorney is the best source for the latest information regarding the laws in your state.

Before making your decision to file for bankruptcy, double-check to see if other, less drastic options could make sense. For example, if you only have a little bit of debt, you might be better off if you went through consumer credit counseling. You can also talk to creditors and ask them to lower payments, but be sure to get any debt agreements in writing.

Chapter 13

Learn what you can about Chapter 13 bankruptcies. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. Filing for this type of debt will ensure that you can hold onto your real estate and personal property, and will let you develop a consolidation plan to pay off your debts. Lasting anywhere from three to five years, this plan will allow you to be discharged from unsecured debt. Remember that you must make every payment. Missing even one could cause the court to dismiss your case.

Being with the people who you love should be still be a top priority. The bankruptcy process can be brutal. This long and stressful process can leave a person feeling guilt ridden, unworthy and ashamed. Lots of people decide they should hide from everyone else until it is all over. However, this isolation will just make you feel worse, and it could cause you to be depressed. So, even though you may be ashamed of the situation you are in, you should still be around those you love.

Make sure bankruptcy is truely your only option before filing. Speak with an attorney who specializes in bankruptcy to find out if alternatives, such as a debt repayment plan or a reduction of your interest rates, might be better for you. Look into loan modification plans if you need to deal with an imminent foreclosure. A good lender will be able to assist you in a variety of ways, from getting rid of your late charges to reducing interest rates. You may even be able to get a loan extension, giving you the extra time you need to pay your debt off. When all is said and done, the creditors want their money, so sometimes it’s best to deal with a repayment plan than with a bankruptcy debtor.

As you now know, there is help out there for you if you want to file for bankruptcy. Don’t let the situation overwhelm you. Look at bankruptcy as a way to begin again.

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