There is hope for a better life after bankruptcy, no matter the unpleasantness that went before. Wiping the slate clean means having a new lease on life. Continue ahead to learn how you can smooth out the bankruptcy process so it’s not a financial disaster.
Do not try to get clever by paying your taxes via credit card before you declare bankruptcy in an effort to dodge your tax burden. Most of the time, you cannot discharge this debt. As a result, you will owe the IRS a lot of money. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. If you live in an area where tax can be discharged through bankruptcy, financing your tax bill is pretty pointless.
Try to make certain you are making the right choice prior to filing your petition. You have better options. For example, you could try 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.
Ask those you know if they have an attorney to recommend, instead of finding one on the Internet or in the phone book. There are way too many people ready to take advantage of financially-strapped individuals, so you must ascertain that your attorney can be trusted.
Be honest when filing for bankruptcy. Don’t hide liabilities or assets, as they’ll come back and haunt you. Good or bad, you must tell your bankruptcy attorney everything about your financial situation. Being honest is both the right thing to do and, moreover, it is required by law.
Bankruptcy Laws
Educate yourself about state bankruptcy laws and possible outcomes before filing your petition. Bankruptcy laws constantly change and it’s crucial you know about them so you the process of filing for bankruptcy goes smoothly. To stay up-to-date on these laws, check out your state’s government website.
Consider all options before filing for bankruptcy. 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 foreclosure looms, think about getting your loan plan modified. There are many ways in which a lender can make adjustments that will be helpful to you. Among them are extending the loan, forgiving late charges and reducing the interest rate. Remember that creditors desire to get paid and usually debt repayments are often preferable when dealing with bankrupt debtors.
You can take out a mortgage or car loan while filing Chapter 13 bankruptcy. However, it won’t be as easy as it may have been to get one prior to the bankruptcy. You must meet with a trustee to gain approval for a new loan. It is important to make a budget and prove that you are able to afford the payment. You’ll also need a valid reason for making the purchase.
File at exactly the right time to maximize the effect of your bankruptcy. Timing is important, and that is especially true when filing for bankruptcy. Sometimes you should file immediately; however, there are times when it is better to delay until the worst has passed. Talk with a bankruptcy attorney to find out the ideal timing for filing based on your particular situation.
Refrain from feeling shameful about your bankruptcy. Many people feel guilty, embarrassed and unworthy when dealing with bankruptcy. These feelings, however, are of no benefit to anyone, and they can be detrimental to your mental health. These difficult financial times can easily take their toll on anyone. One of the best ways to cope with the situation is to maintain a positive attitude.
Bankruptcy can cause anxiety and a host of other physical and emotional issues. You need to do your research to find a good bankruptcy lawyer. Do not solely use cost to determine whom to hire. It may be not be necessary to hire a costly attorney; just make sure he or she is qualified to handle your case. When deciding on an attorney get referrals, contact your better business bureau or get a free consultation from at least three attorneys. You could also sneak into court to watch a real live bankruptcy proceeding to see how that attorney handles the situation.
As stated before, unhappy events may have led you to declare bankruptcy. Nonetheless, filing for personal bankruptcy can be a watershed moment. Bankruptcy is not the end. Follow the tips given here in order to make it a new beginning.
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