If you have been put into the position of needing to file for bankruptcy, your life probably hasn’t been so great recently, but it does not lead to your life ending. The main purpose of filing is to start a second chance at building your credit and meeting all your financial situation. The following article you’re about to read contains great information on bankruptcy and how you advice to help make process of filing go smoothly.
The primary catalyst for filing personal bankruptcy is having a large amount of debt that can’t be readily repaid. If this applies to you, be sure that you know what the laws of your state are. Laws differ from one state to the other. For example, the personal home is exempt from being touched in some states, but not in others. Be sure to have some familiarity with the law in your jurisdiction.
You may still have trouble receiving any unsecured credit card or line after emerging from bankruptcy. If this happens, think about applying for a couple of secured credit cards. This demonstrates to creditors that you are serious about getting your credit record back in order. If you pay your secured card off on time, you will ultimately be able to receive an unsecured card.
The professional that helps you choose to file with needs to know both the good and bad aspects of your finances.
Do not use a credit card to manage your tax issues and then try to file bankruptcy. 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. Generally speaking, debt incurred to pay taxes and the tax bills themselves are treated the same in a bankruptcy. Therefore, you have no reason for use of a credit card, if the amount is to be discharged in due process of the bankruptcy.
Before pulling the trigger on bankruptcy, make sure that a less-drastic solution isn’t more appropriate. If your debt is relatively low, you can join a counseling program or straighten your finances out by yourself. You may have luck negotiating lower payments by dealing directly with creditors, but be certain to get any arrangements with creditors in writing.
Make sure that you meet with an actual lawyer and not an assistant or paralegal, because it is illegal for these people to give legal advice.
Never pay to have a consultation with a lawyer, and ask a lot of questions. Free consultations are standard practice among bankruptcy lawyers, so interview multiple candidates before making a final decision. 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. Take your time before you decide to file after you meet with your lawyer. You have lots of time for consulting with other lawyers.
Bankruptcy filings do not necessarily mean that you have to lose your home. Depending on if your home’s value has gone down or if it has a second mortgage, you may end up keeping it. You may also want to check out the homestead exemption either way just in case.
Understand the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Take the time to learn about them extensively, and look at the advantages and disadvantages of each.If the information you read is unclear to you, go over it with your lawyer so that you can make the best decision.
It is important to know how Chapter 7 filings differ from Chapter 13 filings. Go to a reputable website and research the benefits and detriments of each type of bankruptcy. Learning about bankruptcy is not simple, so call a bankruptcy attorney to make an appointment to ask questions.
Be certain that bankruptcy really is your best option. You may well be able to get away with going through debt consolidation to help make the payments easier to deal with.It is not a quick and easy process of filing for bankruptcy. It will also harm your access to credit in years to come. This is why it is crucial that you must make sure bankruptcy is your other debt relief options first.
Chapter 13 Bankruptcy
Before ultimately deciding whether or not to file for bankruptcy, be sure to weigh the different options available to you. 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. You can apply for a modification of your mortgage if your home is going into foreclosure. The lender may be willing to reduce interest rates, eliminate late charges or extend the life of the loan. Ultimately, creditors want their money, and many times repayment plans are preferable to a debtor that is bankrupt.
Consider filing for Chapter 13 bankruptcy is an option.If you currently have some income and don’t have more than $250k in debt, Chapter 13 bankruptcy is something you are able to file for. This lasts for three to five years and after this, in which you’ll be discharged from unsecured debt.Keep in mind that even missing one payment can be enough for your case.
If you are about to file for bankruptcy, you have probably been through tough times lately. The initial process might be difficult and draining, but there’s something special waiting on the other side. By embracing the information that has been provided here to you, you can take the negative connotation that surrounds bankruptcy and change it to a positive one.
Bankruptcy laws are very exact and very important, so ensure that you’re well aware of all current laws before you file a petition. Here is one example, an individual who files for bankruptcy cannot transfer any assets for a year before the filing date. Not only that, but the filer cannot lawfully accrue additional debt just prior to filing.