When in debt and filing a claim, don’t worry anymore. There are countless resources available online to help you avoid the ruins of going through a bankruptcy. Check out the advice from this article to see what you can do so you do not have to file for bankruptcy.
Do not consider paying off tax debt with credit cards and filing for bankruptcy afterward. It won’t work. Generally speaking, taxes are not a dischargeable debt. The delays caused by this sort of tactic could leave you owing the IRS a great deal in interest and penalties. Transferring the debt to another medium (e.g. a credit card) won’t magically make a tax debt discharagable, either. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.
If you are going through a bankruptcy do not fall victim to guilt and pay off debts that you do not need to pay. Don’t touch retirement accounts unless you don’t have a choice. Dipping into savings may need to happen, just don’t totally wipe it out, or you might not have much financial security later.
Don’t hesitate to give your attorney a heads-up about something she has missed. Don’t assume that they will recall every detail that you go over with them without a friendly reminder. This is your bankruptcy and your future, so never be nervous about speaking your mind.
Be sure to hire an attorney before you embark upon filing for personal bankruptcy. Personal bankruptcy is quite complex, and it is entirely possible that you will not be able to familiarize yourself with all the laws and processes. A qualified bankruptcy attorney can guide you through the filing process.
Be certain to grasp the distinction between Chapter 7 and Chapter 13 bankruptcy cases. The Chapter 7 variety can help you eliminate your debts almost entirely. With very few exceptions, the connections between you and your creditors will be severed. Filing Chapter 13 differs by requiring you to agree to a 60 month plan to repay your debts before they are totally eliminated. Both options have advantages and drawbacks, so do your research before deciding.
Meet with a few attorneys who offer free consultations before hiring one. By law, paralegals and assistants can not give legal advice, so be sure that you are meeting with an actual attorney. Look for an attorney until you find one you feel comfortable with.
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. Not only can you repay your debts through consolidation, personal property can be kept, as well as real estate. Lasting anywhere from three to five years, this plan will allow you to be discharged from unsecured debt. Remember, though, that if you fail to make even one payment, the case will be thrown out and you’ll be right back where you started.
Before ultimately deciding whether or not to file for bankruptcy, be sure to weigh the different options available to you. You can get your interest rates reduced or enter into a debt repayment plan. Before you file bankruptcy, ask your attorney if any of these are viable alternatives for you. If you are about to lose your house, talk to your lender about a loan modification. Your lender can adjust your loan in many ways including extending the time you have to pay, reducing your interest rate, or canceling some of your late fees. Most creditors will be willing to work out an option to avoid not getting paid at all.
Make sure that you act at the appropriate time. Timing can be critical when it comes to personal bankruptcy cases. For some people, filing right away is best, however for others, waiting a while is best. Speak with a bankruptcy lawyer to see when is the best time for you to file bankruptcy.
When filing for bankruptcy, ensure you have listed all of your financial obligations. If you forget to add these, your petition could be delayed or dismissed. It does not matter what you think of your financial situation, put the sum amount either way. Anything, like a job on the side, assets, like cars, and any outstanding loans should be included.
Proper planning is the best place to start. It’s a good thing if you are able to buy a little time for yourself. If you are making efforts, then you should have nothing to worry about. Start to plan things out on how your future will be.