Filing for bankruptcy is still an option for anyone who has had possessions repossessed by the IRS. Depending on personal circumstances, personal bankruptcy can be the only sensible option, despite the hit it levies on credit availability. The advice below will provide you with all the information you need to understand the results of choosing to file for bankruptcy.
Retirement Accounts
As bankruptcy appears on the horizon, don’t take your savings or retirement accounts to try to pay off all your bills. Retirement accounts should never be touched if it can be helped. Of course you will have to touch some of your savings to get through all of the hearings, but do not put out any money that you do not have to by law.
Do not hesitate to remind your lawyer of any details regarding your case. Don’t just assume that the attorney will remember it automatically. It’s your financial future that is in his hands; don’t hesitate to speak up.
Be warned that after your bankruptcy, you may stand out as a leper to credit institutions. You may be unable to get a simple credit card. In this event, you should attempt to apply for a secured card or two. This will show people that you are serious about getting your credit record back in order. If you pay your secured card off on time, you’ll eventually find that companies will start offering you unsecured credit.
Be as honest as you possibly can when filing for bankruptcy; hiding liabilities or assets will only hurt you in the long run. It is important that you are completely transparent, showing everything financial that needs to be known. Put everything out on the table and craft a wise plan for handling the situation the best you can.
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. Always ensure that the person you meet with is a real lawyer, not a legal assistant or paralegal. These people can’t give legal advice. Considering several different lawyers can help find someone to trust.
Your most important concern is to protect your home. Losing your home is thought of as common in bankruptcy cases, but it is by no means inevitable. Check your home’s current value to see if it has gained equity and get your first and second mortgage papers together. If you meet certain criteria, you may be able to retain ownership of your home even after filing for bankruptcy.
When your income surpasses your bills, you should not be filing bankruptcy. Although bankruptcy may feel like a simple method of getting out of your large debt, it leaves a permanent mark on your credit history for up to 10 years.
Repayment Plans
Before you file for personal bankruptcy, weigh all of your options. 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. If you are about to lose your house, talk to your lender about a loan modification. Your creditors will be willing to work with you to allow you to pay off your debts. They may be able to take late fees off of your account, cut down your interest, or even extend the loan’s repayment period. Because of the fact that creditors would like to see their money they are likely to offer repayment plans versus not getting paid at all if you file for bankruptcy.
Find out about lowering the cost of the payment you pay monthly on your car, if you are afraid of losing it. Lower payments can sometimes be structured into a Chapter 7 solution. You must have bought the car 910 or more days before you filed, the loan must have a high interest rate, and you have to have a secure and steady working history in order for that to work.
As you can see by now, you do have the option of filing bankruptcy. Given that fact, it should be your last resort due to the consequences involved. Staying informed on how to manage this situation could prevent you from experiencing headaches and it can also help you keep your valuables.
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