Filing Bankruptcy? Check Out This Must-Read Advice

by Dori Tery on April 7, 2020

Anything that leads you to declaring or filing for bankruptcy is probably not a happy story, but the life you live after might be. The bankruptcy is that you another chance to live a financially responsible life. Keep reading for ways to experience bankruptcy as a second chance instead of financial doom.

If this sounds familiar, you need to familiarize yourself with regional bankruptcy laws. Each state has its own set of rules regarding personal bankruptcy. For example, in some states you can keep your home and car, but not in others. You should be familiar with the laws for your state before filing.

Don’t use a credit cards to pay your taxes if you’re going to file bankruptcy. In many parts of the country, this debt will not be dischargeable, and you could be left owing a significant amount to the IRS. This makes using a credit care irrelevant, when it will just be discharged.

Credit History

You can find services like counseling for credit counselling services. Bankruptcy leaves a permanent mark on your credit history, so before you make such a big decision, you want to exhaust all other options so that the future effects on your credit history are as minimal as possible.

Instead of relying on random selections from the phone book or Internet, try your hardest to find one with a personal recommendation. There are a number of companies who may take advantage of your situation, so you must ascertain that your attorney can be trusted.

Be certain to speak with an attorney, not their paralegal or law clerk, instead of a paralegal or assistant; those people aren’t allowed to give legal advice.

Bankruptcy filings do not necessarily mean you’ll lose your house. Depending on certain conditions, you might be able to keep it. You may also want to check out the homestead exemption either way just in case.

Unsecured Debt

Consider Chapter 13 bankruptcy is an option. If you have a regular source of income and less than $250,000 in unsecured debt, you may be able to file Chapter 13 bankruptcy. This plan normally lasts from three to five years, your unsecured debt will be discharged. Keep in mind that missed payments will trigger dismissal of your whole case to get dismissed.

Going through a bankruptcy is a lot of stress. Lots of people think they should hide from everyone else until this is all done. This is not recommended because you will only feel bad and this may cause serious problems with depression. So, it is critical that you keep spending time with the ones you love, you should still be around those you love.

Don’t file bankruptcy if you can afford to pay your bills. Bankruptcy may seem to be the easy way out, but it is a huge mark on your credit score and remains there for up to 10 years.

This stress could actually cause depression, so do what you can to fight that from happening. Life will get better after you finish this process.

Judging from the information contained within the article alone, you can now see that there are ways to get out from under the piling debt. Nonetheless, filing for personal bankruptcy can be a watershed moment. 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.

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