Personal bankruptcy may be the right option for folks who have had property seized by the IRS. Bankruptcy can wreak havoc on credit, but it may be the only way out of your situation. The article below discusses some of the pros and cons of filing bankruptcy.
Before making the decision to file for bankruptcy, be sure to do some research and learn all you can about the subject. There are many websites available that offer this information. The United States DOJ, the NACBA, and the ABI all have useful information. Knowing is half the battle, after all, and these websites are the first step in learning what you need to know to make your bankruptcy smooth and stress-free.
Try going to a personally recommended bankruptcy lawyer instead of using a phone book or the Internet. 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.
Any bankruptcy consultation should be free of charge. Most lawyers provide a consultation for free, so consult with many of them before picking which one you want to hire. Don’t choose a lawyer until your questions about bankruptcy are sufficiently answered. It is not necessary to come to a decision immediately following the meeting. Be sure to talk with a number of lawyers, and compare the information you receive.
Be sure to enlist the help of a lawyer if you’re going to be filing for bankruptcy. The topic of bankruptcy is a complicated one and it is important that you know all about it. When you engage the services of a bankruptcy lawyer, you can be assured of getting the help your need to proceed correctly.
Chapter 13 Bankruptcy
Consider filing a Chapter 13 bankruptcy. If your source of income is regular and your unsecured debt is less than a quarter million, Chapter 13 bankruptcy is something you are able to file for. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. The window for Chapter 13 repayments is typically 3-5 years. At the end of this time, any unsecured debt is discharged. Just ensure that you take necessary precautions, as missing one payment can result in the court dismissing your case.
Do not forget to be around those you love. Filing for bankruptcy is a difficult process. Having to declare bankruptcy leaves many people feeling like a failure. Many people decide to hide away from the world until the process is over. Pulling away from people who care for you will not help the situation, and can cause your negative feelings to intensify. So, it is critical that you spend what quality hours you can with loved ones, regardless of your financial circumstances.
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.
It is important to look at your financial situation from all possible angles before you decide to file for bankruptcy. Ask a bankruptcy lawyer if a debt repayment plan or rate reduction would be of benefit. A plan that can be useful when foreclosure is looming is a loan modification. Your creditors will be willing to work with you to allow you to pay off your debts. They may be able to take late fees off of your account, cut down your interest, or even extend the loan’s repayment period. When all is said and done, creditors want their money and find repayment plans preferable to not getting paid at all.
Once the initial filing period is over, ensure that you are getting out and enjoying life. It’s easy to be stressed during this time. The stress of dealing with bankruptcy could cause you to fall into a depression, unless you take steps to take care of yourself. Once the process if over, your life will improve.
Talk with your lawyer about getting lower payments for any car you wish to keep. In many cases, Chapter 7 bankruptcy can lower your payments. There are a few requirements that you have to meet to be eligible, though. You have to have bought the car more than 2.5 years ago, your loan’s interest rate needs to be over a certain amount, and your employment history has to be good.
As stated previously in this guide, personal bankruptcy can always be an option. Filing for bankruptcy should not be your first choice. Knowing the ins and outs of bankruptcy can make the filing process easier and make it less likely that you’ll have to forfeit your property.