If you are faced with the threat of repossession of valuable assets, you may become terrified of the IRS. Put your finances in order and file for bankruptcy if this is your only option to get out of debt. Keep reading for tips that will help you navigate the process successfully.
If you are in a position where you are unable to pay your debts, bankruptcy may be the only option for you. If this sounds like you, start familiarizing yourself with your state laws. There are greatly varying laws concerning bankruptcy, so it is important to make sure you are getting the correct information. Your home is safe in some states, but in others it’s not. Be aware of bankruptcy laws before filing your claim.
Have a good look around the Internet to see what information is relevant to you regarding bankruptcy. The United States Department of Justice, the American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys, all provide valuable information. By having more knowledge, you can make the right decision, as well as be sure you are ensuring that your personal bankruptcy case goes smoothly.
Try going to a personally recommended bankruptcy lawyer instead of using a phone book or the Internet. There are various companies that prey on the financially desperate, so you need to find someone you can trust to ensure the process goes smoothly,
Do not give up hope. When you file for bankruptcy you may be allowed to recover property like your car, electronics or jewelry that might have been repossessed. If it has been fewer than 90 days since you filed for bankruptcy, it is possible for you to get repossessed property back. Consult with a lawyer who is able to assist you in the filing of your petition.
Chapter 13
Research Chapter 13 bankruptcy, and see if it might be right for you. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. You can secure your home under Chapter 13 and pay your debts with a payment plan. It usually takes three to five years to fulfill this plan. When the time is up, you’re unsecured debts will be discharged. Missing a payment under these plans can result in total dismissal by the courts.
Bankruptcy can be a good time to spend time with people you love. Bankruptcy proceedings can be extremely harsh. It can take a long time, take a great emotional toll and cause people to feel embarrassed and defeated. Lots of people think they need to hide from everyone until this is all done. But, isolating yourself from others could bring out more depression. Because of this, you need to make sure you spend as much time as you can with your family and friends, even if you are ashamed of your finances.
If your earnings are higher than your expenses then filing for bankruptcy is a waste of time and money. Filing for bankruptcy can really damage your credit in the long run, by staying on your report for up to ten years.
Don’t automatically assume that bankruptcy is your only option. Consult with a bankruptcy attorney to see if an interest rate reduction or debt repayment plan is an alternative to filing for bankruptcy. For example, if you are in talks of foreclosure, you could use a modified loan to overcome your debt. The lender can help your financial situation by getting interest rates lowered, dropping late charges, and in some cases will allow you to pay the loan over a longer period of time. Most creditors will be willing to work out an option to avoid not getting paid at all.
See if your attorney can help you lower your payments if you want to keep your vehicle. Chapter seven bankruptcy often provides for the lowering of payments. You need to have bought your car 910 days before you file, have a loan with high interest and you’re also going to need a good work history.
Timing is everything. The timing of your filing could be important to its success. For some people, filing right away is best, however for others, waiting a while is best. Speak with a bankruptcy lawyer to see when is the best time for you to file bankruptcy.
Financial Information
When you are filing for bankruptcy, make sure you list all of the financial information you may have. Omissions or errors may cause your case to take more time to resolve, or even be rejected entirely. Even small amounts of money contribute to your overall financial picture, so do not exclude them. This financial information may include income from side jobs, vehicles you own and loans you have not paid off.
While personal bankruptcy is a valid option, you should consider the other options available to you before making your final decision. Be wary of debt consolidation services, some of these services are scams and are only after your money. Keep in mind the tips from this article, so that you can make smart financial decisions and prevent debt in the future.
This is a limited-time offer. We are not able to guarantee availability if you wait!
