Personal Bankruptcy: Tips For Starting Over With A Clean Slate

by Dori Tery on December 18, 2015

Being buried in debt is a very frightening experience. When you find yourself in that position, it can be hard to know what to do. The following article will give you some pointers on what to do regarding bankruptcy if your burden becomes to much to bear.

You should check with the personal bankruptcy by searching for websites which offer information about it. Department of Justice and National Association for Consumer Bankruptcy Attorneys provide free advice.

Don’t use credit cards to pay your taxes before filing for bankruptcy. Most states do not look at this debt as chargeable, meaning you will have to pay the IRS a lot of money. This makes using a credit care irrelevant, when it will just be discharged.

Chapter 7

Be certain that you know how Chapter 7 and Chapter 13 differ.Chapter 7 bankruptcy is intended to wipe out all of your debt. All of your financial ties to the people you owe money to will go away. Chapter 13 bankruptcy though will make you work out a five year repayment plan to eliminate all your debts.

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

Be certain that bankruptcy really is your best option. It might be possible to consolidate some of your debts. It can be quite stressful to undergo the lengthy process to file for bankruptcy. It will also harm your ability to get credit opportunities. This is why it is crucial that you must make sure bankruptcy is your other debt relief options first.

Consider all of your options prior to filing for personal bankruptcy. One option might be credit counseling.There are some good non-profit organizations that you can use. They can speak with your creditors in order to reduce your payments and interest rates. You make payments to them and they pay your creditors through them.

This could be considered as fraud, and even after bankruptcy you can be forced to pay all of that money back to the credit card company.

Make wise decisions when you select a bankruptcy attorney. This type of law attracts some inexperienced newcomers. Be sure your lawyer has at least five years of experience and is board certified. By searching online, as well as customer reviews and any disciplinary action against him or her.

Any debts that you forget to list will be left out of the final discharge.

You do not need to halt your bankruptcy if you have changed jobs. Bankruptcy may still be what is best option. When you decide to file can make a huge difference. If the bankruptcy filing gets posted before the job begins, this extra money won’t count against you.

No matter how messed up things are as you file for bankruptcy, make sure you tell the truth about your situation. Lying or hiding information about your obligations and assets is perhaps the most significant error you can make. You can end up in jail for lying about this information.

Chapter 7

If after filing for Chapter 7 you aren’t qualified for Homestead Exemption, it may be possible for you to file a chapter 13 also for your home mortgage. Some cases make it best for you to take your Chapter 7 case to a Chapter 13 one, dependent on what your attorney says.

It is acceptable to find yourself overwhelmed and turn to bankruptcy to get out of trouble. Use what you learned from this article to regain control of your financial situation. Apply the tips you learned from this article into your life.

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