If you are thinking about filing for bankruptcy, research all your options before making an informed decision. You can prepare yourself for the tasks ahead by checking out the information and advice that this article has to offer you. Then, you can make a decision based on what you learn.
It’s important that you understand what bankruptcy is and how it will change your life before you attempt to file a claim. The United States Run a quick Internet search to find out all the different agencies you should be contacting or visiting via the web to find out what you can. The more you know, the more you’ll knwo that you’ve made a wise decision and the you’re making sure your bankruptcy goes as smooth as possible.
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. If the tax can be discharged, so can the debt. Thus, it doesn’t make sense to use a credit card when it is going to be discharged when you file for bankruptcy.
Be sure to bring anything up repeatedly if you are unsure if your lawyer is focusing on it. Many times a lawyer may forget a key detail; therefore, it is important to remind your lawyer of any key information. Speak up if something is troubling you, as this is your future we are talking about here.
You may end up losing more than you bargained for when you file a bankruptcy claim, so be sure that you know just which assets may be taken before filing. The kinds of assets which may be exempted during bankruptcy proceedings are listed in the Bankruptcy Code. You can determine exactly which of your possessions are at risk by consulting this list before you file. Without reading the list, you may be shocked at which possessions can be taken from you.
Hire a lawyer if you plan on filing for bankruptcy. There are many different aspects to filing bankruptcy, and you may not understand everything there is to know. When you engage the services of a bankruptcy lawyer, you can be assured of getting the help your need to proceed correctly.
Weigh all of your options before declaring bankruptcy. If your debt is relatively low, you may be able to manage it with credit counseling. It is sometimes possible to negotiate smaller payment by yourself. If you do this, make sure you save a written record of debt modifications that are negotiated.
Your most important concern is to protect your home. You do not have to lose your home in the process of a bankruptcy. It is entirely possible that you will be able to keep your home. This is dependent upon the your home’s value and whether or not you have taken a second mortgage. If you meet certain criteria, you may be able to retain ownership of your home even after filing for bankruptcy.
Understand the differences between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy. Read up on the topic and familiarize yourself with the benefits and drawbacks of both variations. Ask your bankruptcy lawyer to clarify anything you don’t understand before making a final decision about which type of bankruptcy to file.
Chapter 13
Learn what you can about Chapter 13 bankruptcies. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. This allows you to keep possession of your real estate and property and repay your debt through a debt plan. That plan lasts approximately three to five years, and then you are discharged from unsecured debt. Keep in mind that even missing one payment can be enough for your whole case to get dismissed.
Do not forget to be around those you love. The whole process of filing for bankruptcy is hard. The long process can leave people stressed out and racked with guilt and shame over having their financial affairs laid out for everyone to see. Some people do not even want to speak with others until the bankruptcy is official. You shouldn’t do this, though, as staying away from the world can amplify any emotional issue you are having, and they could even morph into full-blown clinical depression. Spend time with your family, talk about your problems and find things that relax you.
Think about all your options before pulling the trigger. You may qualify for alternatives such as debt repayment plans or interest rate reductions. Ask your bankruptcy attorney about these options. If you are about to lose your house, talk to your lender about a loan modification. The lender may be willing to reduce interest rates, eliminate late charges or extend the life of the loan. Creditors want to recoup the most money possible from debtors, and they can often get more through debt repayment plans than bankruptcy procedures.
As you are aware from the previous paragraphs, bankruptcy is not something that just happens. When you file for bankruptcy, things must be done the right way. By following the above advice, you will make fewer mistakes and find yourself better prepared.
