Frustration, fear, sadness and anger are among the emotions you may go through as you deal with a personal bankruptcy. Those who file bankruptcy worry they will be stuck and unable to pay their bills and still live their lives everyday. As you can see, filing for bankruptcy does not mean life is over.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. In most cases, you can use the adage that “a dischargeable tax is a dischargeable debt.” So, there is no reason to use your credit card if it will be discharged in the bankruptcy.
Don’t pay for an attorney consultation and ask him or her anything you want to know. Most attorneys offer a free consultation which you should take advantage of. Meet with a few before finalizing your plans. Only make a decision after you have met with several attorneys and all of your concerns and questions have been addressed. It is not necessary to come to a decision immediately following the meeting. Take the time to meet with a number of attorneys.
It’s a good idea to meet with a number of bankruptcy lawyers before settling upon one. The majority of them offer free initial consultations. Make sure that you meet with an actual lawyer and not an assistant or paralegal, as these people are not allowed to provide legal advice. Be sure to check out a number of lawyers so that you will find one who is just right for you.
Think about all your options before pulling the trigger. Talk with a bankruptcy lawyer and ask about alternatives, such as debt consolidation or negotiating with creditors. If you are looking at foreclosure, think about a loan modification program. 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. Creditors want to recoup the most money possible from debtors, and they can often get more through debt repayment plans than bankruptcy procedures.
After you have filed for bankruptcy, enjoy your life. It’s easy to be stressed during this time. It is essential to cope with this stress well, to prevent becoming depressed. Once your petition is in the hands of the judge, all you can do is wait.
Talk with your lawyer about getting lower payments for any car you wish to keep. Filing for Chapter 7 can help to lower your monthly payments on possessions such as your vehicle, helping to ease your financial load. If you meet the criteria specific to your state, it may be a good option to consider.
Bankruptcy is a difficult and stressful process, and you will need all the help you can get. To avoid getting too stressed, make sure you hire a reputable bankruptcy attorney. Don’t allow cost to determine who you hire. While the person you select does not have to cost the most, they should be competent and reliable. Get referrals from people you know who have been in your situation, check with the better business bureau and use free consultations to interview several people. You could even attend a court hearing to see how an attorney handles his case.
Be careful on how you pay your debts before you file a personal bankruptcy. Bankruptcy laws prohibit some creditor payoffs within 90 days of filing. When it comes to family members, a year is the cutoff for payoffs. Do your research and figure out the laws for you.
It is important not to delay the process of determining whether or not you should file for bankruptcy. It can be difficult to ask for help, but as you wait, you accrue more debt. By speaking with a professional in a timely manner, you can get good advice before the bankruptcy process gets too difficult.
Filing for bankruptcy isn’t the end of the world. You may have found yourself being fearful when you began thinking of bankruptcy, but once you get through it, you will find it’s not the end of the world. Making use of the tips you found here will allow you to heal your financial situation.
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