Tips To Consider If You Are Thinking About Filing For Bankruptcy
It is important to be cognizant of the laws in your state before filing for bankruptcy.
Do not attempt to pay your taxes with your credit cards and subsequently file for bankruptcy. Most places will not consider the debt dischargeable, meaning you will have to pay the IRS a lot of money. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. Just because your credit card could be discharged in bankruptcy does not mean you should use it.
When choosing a bankruptcy lawyer, your best option is to find someone who is recommended by someone you know versus someone who you find online or in the phone book. Don't be taken in by some fly-by-night company that exists only to profit from the suffering of others. Check out any lawyer you are considering thoroughly before engaging him or her.
Take advantage of the opportunity to consult with a number of bankruptcy lawyers who offer the first visit at no charge. Never settle for speaking with a paralegal or an assistant. They are not trained, nor allowed, to pass on legal advice. Hiring a lawyer could help you become comfortable with the legal things that you will encounter.
Become knowledgeable in regards to details about chapter seven bankruptcy vs. chapter 13 bankruptcy. Take the time to learn about them extensively, and then figure out which one will be best for your particular situation. Ask your bankruptcy lawyer to clarify anything you don't understand before making a final decision about which type of bankruptcy to file.
Consider filing a Chapter 13 bankruptcy. With a regular income and unsecured debt below $250,000, Chapter 13 is probably best for you. Declaring bankruptcy can assist you in consolidating your debt so you can repay it more easily. That plan lasts approximately three to five years, and then you are discharged from unsecured debt. Stay mindful that should you for any reason miss even one plan payment, your whole case is going to get thrown out by the court system.
Do not forget to be around those you love. Going through bankruptcy is difficult. It is long, full of stress and leaves individuals having feelings of shame and guilt. Some folks tend to stay in the shadows until their case has concluded. But, keeping to yourself is likely to cause even greater sadness and despair. Because of this, it's vital you keep spending some time with the people you love despite what you are currently going through.
Weigh all of your options before declaring bankruptcy. For example, consumer credit counseling programs can help you by renegotiating your debts with your creditors into payments that you can afford. 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.
Learn from the mistakes you made that sent you to bankruptcy court. That said, filing for bankruptcy can be a positive turning point in your life. As a matter of fact, if you put the ideas in this article into play, you can let bankruptcy proceedings a pivotal moment in your existence towards a brighter future.
