If you are considering filing for bankruptcy, your life probably hasn’t been so great recently, but that doesn’t mean things can’t improve once you file. Bankruptcy is all about giving you a fresh start. Keep reading to see how bankruptcy can actually give you a new lease on life, rather than function as a permanent financial albatross.
Never shirk on the truth in your petition for bankruptcy. Withholding or lying about certain information can seriously worsen your financial situation. It could lead to being unable to file for bankruptcy or even legal trouble.
Make certain that you comprehend everything regarding personal bankruptcy by studying online. The U.S. DOJ, the NACBA, and the ABI all have useful information. You need to spend some time gathering valuable information so you can file your bankruptcy with confidence.
Any bankruptcy consultation should be free of charge. It is a good idea to consult several attorney before deciding on one. The lawyer who properly answers your questions is the one you should hire. You can think about your decision before making a commitment. Take the time to meet with a number of attorneys.
Before making your decision to file for bankruptcy, double-check to see if other, less drastic options could make sense. For example, you want to look into credit counseling. This is the best option for small debts. Some creditors will work with you to help you pay off your debt with lower interest rates, lower late fees, or an extended loan period.
Before you file for bankruptcy, make sure you absolutely need to. Consider whether debt consolidation may be a more viable alternative. Bankruptcy is a stressful process. Your credit will be impacted for many years. Thus, you must make certain that bankruptcy really is the only viable solution to your problems.
Do not use a credit card to pay income taxes and then file for bankruptcy. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS. One thing that you should remember is that if your tax is dischargable, your debt will also be dischargeable. It is pointless to use credit cards if they can be discharged.
Chapter 13 Bankruptcy
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. If your source of income is regular and your unsecured debt is less than a quarter million, Chapter 13 bankruptcy is something you are able to file for. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. It usually takes three to five years to fulfill this plan. When the time is up, you’re unsecured debts will be discharged. Keep in mind that missed payments will trigger dismissal of your case.
Remember to spend some quality time with your loved ones. The process for bankruptcy can be brutal. It can take a long time, take a great emotional toll and cause people to feel embarrassed and defeated. Some people do not even want to speak with others until the bankruptcy is official. However, becoming a hermit will only increase feelings of self-doubt and could make you depressed. Because of this, it’s vital you keep spending some time with the people you love despite what you are currently going through.
Always remind your lawyer of specifics that are important to your case. Just because you have told him something of importance that he will remember it. Remember that you’re the boss. You’re paying your lawyer, so you should not be afraid to have your say. After all, the quality of your life hangs in the balance.
Again, it is likely that whatever precipitated a bankruptcy filing was not something on which you look back fondly. Use what you have learned and take responsibility for your financial health – turn your life around. By embracing the information that has been provided here to you, you can take the negative connotation that surrounds bankruptcy and change it to a positive one.