Filing for personal bankruptcy protection is an important strategy for people that have had assets, such as their vehicle, seized by the IRS. Depending on personal circumstances, personal bankruptcy can be the only sensible option, despite the hit it levies on credit availability. Read this guide in order to know more when it comes to filing bankruptcy as well as the consequences of doing so.
It should go without saying, but refrain from lying in your bankruptcy filings. You must avoid the temptation to conceal any valuables, money or other assets from the courts. If they find that you have lied, you may be faced with fines, penalties or the inability to file in the future.
When looking for a lawyer to handle your bankruptcy claim, the best way to go is off of a personal recommendation instead of simply flipping through the phone book. Companies are constantly popping up, claiming to help, yet only seek to profit from your misery. In ensuring that your bankruptcy is as simple as possible, trusting your attorney makes a big difference.
Be honest when filing for bankruptcy. Don’t hide liabilities or assets, as they’ll come back and haunt you. When you file make sure whoever is handling the process is fully aware of each and every financial detail. Put everything out on the table and craft a wise plan for handling the situation the best you can.
Be sure to hire an attorney before you embark upon filing for personal bankruptcy. Bankruptcy can be highly confusing and stressful, and you need an unbiased partner who can help simplify the process. A qualified bankruptcy attorney can guide you through the filing process.
Before making the decision to file for bankruptcy, be sure you have considered alternative options. Those with smaller debts may find use in a program for consumer credit counseling. You could even negotiate for lower payments. However, you should ensure that you always obtain a written record of all the changes to your debt that you’ve agreed to.
There are two types of personal bankruptcy: Chapter 7 and Chapter 13. Make sure you know what each entails so you can make the right choice. In Chapter 7 bankruptcy, your debts are all eliminated. All creditor relationships will be severed. With a Chapter 13 bankruptcy, you will have to make payments for 5 years before the debts are forgiven. It is vital that you know the differences between these types of bankruptcies, in order to find the option that’s best for you.
Before declaring bankruptcy, see if there’s anything less drastic you can do to repair your credit. A lawyer that specializes in bankruptcy law can help advise you of other options, such as repayment plans and reducing interest rates to relieve some of the burden. Loan modification can help you get out of foreclosure. There are a lot of ways that your lender can assist you, such as reducing interest rates, eliminating late fees, or extending the term of your loan. Making arrangements with the creditors to make reasonable payments towards you debt is a much better plan than bankruptcy because the lender simply wants the loan repaid.
Before you choose Chapter 7 bankruptcy, think about what effect that is going to have on any co-signers you have, which are usually close relatives and friends. When you file a Chapter 7, your debts will be dissolved. However, the creditors could come after your co-signer and demand full payment for the debt.
Before filing for bankruptcy, establish the fact firmly in your mind that you have nothing to be ashamed of. Often, with bankruptcy, come feelings of guilt, shame and worthlessness. 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.
When you are going through bankruptcy proceedings, it is sure to cause a great deal of stress. To have a reliable and trustworthy guide through the process, find a highly qualified attorney. Make your hiring decision based on several criteria, not just on price. The cheapest attorney may not be the best, but the most expensive may not be the best either. Make sure that you verify their reputation through various sources including people in your circle of friends and the BBB. You can attend court hearings if you want to see a prospective attorney in action.
Don’t file for personal bankruptcy until you’ve looked into your other options. Perhaps credit counseling can resolve your issues. You can get the help you need from a variety of non-profit credit counseling companies. They will liaise with those you owe money to and try to get better payment options opened to you. You’ll make your payments to the company, and the company will pay off your creditors.
As mention earlier, you always have the option to file for bankruptcy. It is not something that should be done lightly, however, due to the negative effects it can have on one’s credit. Knowing how to best go through the bankruptcy process can reduce one’s troubles in the long run and make it easier to retain one’s possessions.