It’s very easy to feel contempt for people who declare bankruptcy, but that feeling disappears when filing for it becomes a possibility. Divorce, job loss and illness can all lead people to certain bankruptcy. Whatever your reasons for filing bankruptcy, the article below can help.
Individuals often seek to file for personal bankruptcy protection if their debts exceed their ability to repay them. If this sounds familiar, you should read up on the bankruptcy laws in your state. Each state has its own laws regarding personal bankruptcy. For instance, in some states, you can’t lose your home to bankruptcy, while in other states, you can. See to it that you understand the bankruptcy laws in the area that you live prior to filing.
Do not use a credit card to pay income taxes and then file for bankruptcy. In most states, this is not dischargeable debt. Therefore, you will end up owing the IRS a lot of money. Bear this in mind; if the tax can be discharged, then the debt can be as well. Thus, it doesn’t make sense to use a credit card when it is going to be discharged when you file for bankruptcy.
You should never pay for your first consultation with a bankruptcy attorney. Make the most of this free consultation by asking lots of questions. You can meet with a few lawyers before deciding on one. Most lawyers provide a free initial consultation. Decide which lawyer you like best buy reviewing all of the lawyers’ answers to your questions. Choose the lawyer who addressed your issues the best. You don’t have to make your decision right after this consultation. This offers you the opportunity to speak with other attorneys.
Become knowledgeable in regards to details about chapter seven bankruptcy vs. chapter 13 bankruptcy. Learn the benefits and drawbacks of each type before deciding which is right for you. Before making any decisions, discuss the information you have learned with your lawyer.
Chapter 13 Bankruptcy
Learn what you can about Chapter 13 bankruptcies. If you posses a regular source when it comes to income, and you have less than $250,000 of unsecured debt, you could file using Chapter 13 bankruptcy. Chapter 13 bankruptcy permits you to remain the owner of your properties, while allowing you to repay your debt using a debt consolidation loan. Typically, this goes on for roughly three to five years, and once this time has expired, your unsecured debt is eliminated. Consider that if you even miss one payment, your case will not be considered by the court.
Don’t file bankruptcy if you can afford to pay your debts. Although bankruptcy may feel like a simple method of getting out of your large debt, it leaves a permanent mark on your credit history for up to 10 years.
Think about all your options before pulling the trigger. Some alternatives to filing for personal bankruptcy include debt repayment plans, interest rate reduction plans, and debt consolidation. Talk with the personal bankruptcy lawyer to find out more. You can apply for a modification of your mortgage if your home is going into foreclosure. There are many ways in which a lender can make adjustments that will be helpful to you. Among them are extending the loan, forgiving late charges and reducing the interest rate. When all is said and done, creditors want their money and find repayment plans preferable to not getting paid at all.
Be sure you’re acting when the time is right. The timing of your filing could be important to its success. While there are times that it is ideal to file soon, there are other times in which you should wait. Have a chat with a bankruptcy specialist to discover when the ultimate time would be for you to file.
If you are forced to file for bankruptcy, you should avoid being ashamed of yourself. It is not uncommon for bankruptcies to elicit feelings of guilt, remorse and embarrassment. Learn to accept these feeling at face value– you can’t prevent yourself from feeling them, but you can stop them from controlling you. A good way to deal with bankruptcy is to make sure that you keep a stiff upper lip.
Bankruptcy should be considered only as a last option. Don’t carry the weight of the world on your shoulders. If the circumstances that brought you here were not within your ability to control, let go of the stress and guilt associated with them. Reading this article will result in you finding useful information.