Personal bankruptcy may be the right option for folks who have had property seized by the IRS. Although bankruptcy takes a major toll on credit, sometimes, it is the only option. The article below discusses some of the pros and cons of filing bankruptcy.
Try going to a personally recommended bankruptcy lawyer instead of using a phone book or the Internet. There are lots of unsavory companies and lawyers out there who prey on people who are in desperate straits. It is up to you to find someone that is trustworthy and can make the process go smoothly.
If bankruptcy is an option for you, secure the services of an attorney. It is difficult to make all of the necessary decisions yourself, and expert guidance will be helpful. Your lawyer will make sure that the filings are correct and help you navigate the complex process of filing for bankruptcy.
Many bankruptcy lawyers offer free consultations, so go to several before choosing one. Ensure that you have a meeting with a real lawyer instead of an assistant, since they can provide the best advice. It will be important to work with a bankruptcy lawyer that you feel comfortable with; a little comparison shopping will help you find the right one.
If you are considering filing for personal bankruptcy, be certain that this is really the right course of action for you. Many times a consolidation loan will ease your financial struggles. Bankruptcy is not a simple, breezy course of action that should be taken lightly. Credit will be much harder for you to come by after you file for bankruptcy. Needless to say, if some alternative strategy will allow you to take care of your debts, you should give it a try before resorting to bankruptcy.
Unsecured Debt
Thing about filing a Chapter 13 bankruptcy. With a regular income and unsecured debt below $250,000, Chapter 13 is probably best for you. You can keep personal possessions, as well as real estate, while paying into a debt consolidation system. Lasting anywhere from three to five years, this plan will allow you to be discharged from unsecured debt. Consider that if you even miss one payment, your case will not be considered by the court.
While going through this process, spend more time with friends and family. Filing for bankruptcy is a difficult process. It takes time and a lot of people feel stressed and ashamed throughout this procedure. Many people tend to hide until their process is completed. 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. Thus, you must keep living your life and socializing with those you love, no matter what is going on with your bankruptcy.
Chapter 7
Before going through the Chapter 7 filing process, ensure that your co-debtors are abreast of any implications relating to this process. When you file under Chapter 7, you will no longer be legally responsible for any debts that were signed by yourself and a co-debtor. Creditors, however, will hold the co-signer liable for the entire balance of the debt.
Know your rights when filing for bankruptcy. There are bill collectors who will claim that you cannot add your debts to your bankruptcy case. There are very few debts, such as child support or student loan debt, that can’t be bankrupted. If these are not the categories in which your debts fall, double check to see if the type of debt can be bankrupted. If it can, be sure to file a complaint about the debt collector with the office of the state attorney general.
As mentioned earlier, there is always the opportunity to file for personal bankruptcy. It is not something that should be done lightly, however, due to the negative effects it can have on one’s credit. Knowledge is power when it comes to bankruptcy.
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