The thought of bankruptcy has brought feelings of anxiety and fear into the lives of many people. Not being able to provide for their loved ones and debt that continues to mount is an issue for many. If any of this frightens you, or you’re currently living this particular nightmare, then the contents of this article are going to prove of good use to you.
Generally bankruptcy is filed when a person is facing insurmountable debt. If this sounds familiar, you should read up on the bankruptcy laws in your state. Bankruptcy laws vary from state to state so it is important to do your research. For example, the personal home is exempt from being touched in some states, but not in others. Before filing for personal bankruptcy, be certain that you are familiar with the laws.
Do not attempt to pay your taxes with your credit cards and subsequently file for bankruptcy. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS. One thing that you should remember is that if your tax is dischargable, your debt will also be dischargeable. Therefore, you should not pull your credit card out for purchases if it is just going to be discharged during the bankruptcy.
Do not hesitate to remind your lawyer of any details regarding your case. Don’t just assume that the attorney will remember it automatically. Your case and future are affected by the attorney’s action, so never be afraid to communicate.
Use a personally recommended bankruptcy attorney instead of one found through the Internet or phone books. 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.
No matter what, don’t give up! Filing for personal bankruptcy may possibly enable you to reclaim your personal property that have been repossessed, like your car, electronics and jewelry items. If you have been subject to a repossession during the 90 days before your filing, you stand a good change of getting your property back. Consult with a lawyer who is able to assist you in the filing of your petition.
If you are meeting with a lawyer to discuss bankruptcy, the initial consultation should be free so ask every question you have. Since most attorneys offer free consultations, meet with a few attorneys before deciding who to hire. Make your decision after all of your questions have been answered. It is not necessary to come to a decision immediately following the meeting. You have lots of time for consulting with other lawyers.
Think carefully about your different options before filing for bankruptcy. If you owe small amounts of money, you can join a counseling program or straighten your finances out by yourself. You may have the ability to negotiate much lower payments, just be sure any debt modifications you agree to are written and that you have a copy.
Since it is possible to obtain a free consultation from the majority of bankruptcy lawyers, meet with a few of them prior to choosing one. Be certain you talk to the lawyer, himself, instead of a paralegal or assistant; those people aren’t allowed to give legal advice. Look for a lawyer who you can relate to.
Take steps to ensure your home is protected. Filing for bankruptcy does not always mean you will end up losing your home. Depending on whether the value of your home has decreased or if you have a second mortgage on the home, you may end up keeping it. You may also want to check out the homestead exemption because it may allow you to keep your home.
Chapter 13
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. Lasting anywhere from three to five years, this plan will allow you to be discharged from unsecured debt. Stay mindful that should you for any reason miss even one plan payment, your whole case is going to get thrown out by the court system.
Don’t hide from your friends and family while you go through bankruptcy. Bankruptcy can really wear down your emotional reserves. It can take a long time, take a great emotional toll and cause people to feel embarrassed and defeated. Lots of people decide they should hide from everyone else until it is all over. Do not isolate yourself or you will put yourself at risk for depression. Therefore, meet this challenge head on and surround yourself with caring family members so you can get through this difficult financial situation.
It is not unusual for people to be worried about bankruptcy; the process is nerve-wracking. If you understand all of the ins and outs of personal bankruptcy, you need not fear it. Use the personal bankruptcy information here as you work your way through your financial situation and make your life situation better for you and your family.
