Bankruptcy: Is It Right For You?

by Dori Tery on November 1, 2015

Many people fear the word bankruptcy. A good number of families are having trouble containing their debt and not being able to support your family can be real frightening. If this sounds like you and you are experiencing these feelings right now, it is our sincere hope that the advice given here will be of help to you.

Be certain to gain a thorough understanding of personal bankruptcy via looking at websites on the subject. Department of Justice and American Bankruptcy Institute are both sites that provide excellent information.

Don’t use credit cards to pay your taxes before filing for bankruptcy. In a lot of places, this debt won’t be discharged, and you could end up owing the IRS a whole lot more. This makes using a credit care irrelevant, when it will just be discharged.

Chapter 13

Consider filing for Chapter 13 bankruptcy is an option. If your total debt is under $250,000 and have a consistent income source, Chapter 13 may be right for you. This lasts for three to five years and after this, in which you’ll be discharged from unsecured debt.Keep in mind that even missing one payment can be enough for your case.

Know the rights when filing for bankruptcy.Some debtors will tell you your debt with them can not be bankrupted. There are very few debts, such as student loans and child support, but be sure to know the details when dealing with debt collectors. If the bill collector is trying to deceive you, make a report with your state attorney general.

It is not uncommon for bankruptcies to elicit feelings of guilt, guilty or ashamed. These feelings do not help you to make rash decisions and cause psychological problems.

Bankruptcy can cause anxiety and a host of stress. To relieve yourself of some stress and keep thing organized, look into securing a good lawyer. Don’t make your choice to retain a particular lawyer simply because they are the sole factor in who you hire. It may be not be necessary to engage the lawyer who charges the highest fees; all you need is a costly attorney; just make sure he or she is qualified to handle your case. Make sure people in your circle of friends and the BBB. You could even attend a court hearing and observe lawyers handling their cases.

For example, you need to know not to shift assets into someone else’s name in the year leading up to your filing.

Research the rules and regulations of personal bankruptcy laws before filing your petition. There are some clauses within bankruptcy code that could lead to issues with your case. Some mistakes could lead to your case being dismissed. Do the proper research as possible about bankruptcy before taking the next step. Doing so will make the process easier.

Consider your options prior to filing for personal bankruptcy. Credit counseling is one option for you should consider. There are non-profit companies that may be able to help you. They will liaise with those you owe money to and interest reduced. You make payments to them and they pay your creditors through them.

It is important to understand that a bankruptcy more beneficial to your credit than struggling month to month with consistently late or missing payments. While the bankruptcy will appear on your credit report for the next decade, you could surely try to fix your damaged credit. The main benefit to filing for bankruptcy is the chance at a second chance.

Make a prompt decision to accept more responsibility for your financial situation before filing.Avoid running up current debts or taking on more debt just before you file for bankruptcy. Creditors and even judges look at your current and past history when they are going through your personal bankruptcy. You should show the court that you spend now.

People who are afraid of bankruptcy have good cause to be; the process can be scary and stressful. The thought of filing may have scared you away in the past, but with this article in hand, you should fear no longer. Apply this advice to improve your situation for yourself and any loves ones.

Comments on this entry are closed.

Previous post:

Next post: