Tips For Dealing With The Burden Of Personal Bankruptcy

by Dori Tery on April 5, 2020

Those dealing with personal bankruptcy filing are known to experience feelings of embarrassment, like anger. People who experience this process are always worrying about how they will be able to pay off debts while living daily life. As the following article explains, filing for bankruptcy does not mean life is over.

Credit Card

Don’t use a credit card to pay your taxes if you’re going to file bankruptcy. In most states, the debt cannot be discharged, and you could be left owing a significant amount to the IRS. This means using a credit card is not necessary, since bankruptcy will discharge it.

Don’t avoid telling your attorney of certain details with your case. Don’t just assume they already know and that they’ll remember something important later without having a reminder. This is your bankruptcy and your future, so do not be afraid to remind your lawyer of any key facts.

Don’t pay for an attorney consultation with a lawyer who practices bankruptcy law; ask him or her anything you want to know.Most lawyers offer free consultations, and you should take advantage of the chance to interview multiple practitioners. Only make a decision after you have met with several attorneys and all of your questions were answered. You do not decide right away. This allows you the opportunity to speak with other attorneys.

Before declaring bankruptcy, be sure you have considered alternative options. For instance, consumer credit counseling programs can help you by renegotiating your debts with your creditors into payments that you can afford. You may have the ability to negotiate much lower payments, but be sure to document any get and new agreement terms in writing from each creditor.

Chapter 13 Bankruptcy

Be sure you know how Chapter 7 and Chapter 13 bankruptcy. Chapter 7 is the elimination of all of your debts for good. Any ties you have concerning creditors will be wiped clean. Chapter 13 bankruptcy allows for a payment plan to eliminate all your debts.

Understand the differences between Chapter 7 bankruptcy and a Chapter 13 bankruptcy. Take the time to find out about each one online, and then figure out which one will be best for your particular situation. If you’re really not sure how this all works after your research, be sure to ask your attorney to explain anything that is unclear before you make your decision about filing.

Before filing for bankruptcy consider every available avenue. It may be that all you really need to do is consolidate some of your debt instead. It is not a quick and easy process of filing for personal bankruptcy. It will also harm your ability to secure credit rating that you have in the future. This is why you explore your last resort.

Think about all your options before pulling the choices available to you when you file for bankruptcy. Loan modification can help you are dealing with foreclosure. The lender can help your financial situation by getting interest rates lowered, so they may be willing to forgive some fees, and in some cases will allow you to pay the loan over a longer period of time. When push comes to shove, creditors want their money, so sometimes it’s best to deal with a repayment plan than with a bankruptcy debtor.

After reading this article, you should be able to see that personal bankruptcy isn’t so bad. While filing for bankruptcy is initially an emotional downer, things will improve. Follow the advice in this article for help in controlling your debt and deciding if bankruptcy is right for you.

Comments on this entry are closed.

Previous post:

Next post: