A lot of folks in modern times are deep in debt. The hate answering the phone because many debt collectors call daily, and every trip to the mailbox means another stressful bill. If this situation sounds familiar, you may decide to consider filing personal bankruptcy. Have a look at the information provided here to ascertain if your situation can be improved using this method.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. 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. In most cases, you can use the adage that “a dischargeable tax is a dischargeable debt.” So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.
Be sure you’re doing what’s right before you file for bankruptcy. Consider any other options that are available to you, such as consumer credit counseling. Before you take the drastic move of filling for bankruptcy and living with a long lasting bad credit history, make sure to consider using another way that may not be as damaging to your credit.
You should be able to meet with a specialized lawyer for free to ask your questions. Most attorneys offer free initial consultations, and you should take advantage of the chance to interview multiple practitioners. The lawyer who properly answers your questions is the one you should hire. It is not necessary to decide immediately after your consultation. After your consultations, do some additional research on each attorney you consider qualified for the job.
Hire a lawyer if you plan on filing for bankruptcy. You might not understand all of the various aspects to filing for bankruptcy. Talk to a bankruptcy lawyer, they can help clarify anything that you might have confusion with.
Familiarize yourself with the bankruptcy code before you file. Bankruptcy laws are in constant flux, so just because you knew the law last year doesn’t mean that the laws will be the same this year. Your state’s website should have the information that you need.
Before making the decision to file for bankruptcy, be sure you have considered alternative options. For example, consumer credit counseling services can often help you figure out a workable repayment plan with creditors. Also, if you just contact your creditors and speak to them plainly and truthfully, the odds are good that you can negotiate a better payment structure that you can afford.
Protect your home. Bankruptcy filings do not necessarily mean that you have to lose your house. For instance, if your home value has dropped recently, or even if you happen to hold a second mortgage, you may not necessarily lose the home. There are other options such as a homestead exemption which offers you a chance to remain in your home, depending on whether or not you meed certain financial conditions.
Loved Ones
Remember to spend some quality time with your loved ones. The process for bankruptcy can be brutal. Having to declare bankruptcy leaves many people feeling like a failure. A lot of folks decide to hide themselves from the world around them until the end of the process. On the other hand, isolation of a self-imposed nature can only worsen your feelings, opening the door to mental depression to join your financial depression. So, it is critical that you spend what quality hours you can with loved ones, regardless of your financial circumstances.
As you can see, there is a lot of help available if you are considering filing for personal bankruptcy. If you deal with your stress in a positive way and make level-headed decisions, your bankruptcy filing will be a step in the right direction for a renewed financial future.
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