Tips For Navigating The Process Of Personal Bankrupcy

by Dori Tery on November 18, 2015

Many people think people who file for bankruptcy are deadbeats, yet they are also as quick to change their mind if they are suddenly in that boat. A change in circumstances, such as a divorce, can cause a situation that can only result in bankruptcy. If you find yourself in this position, educate yourself on the process.

If this is the case for you, you should do some research about bankruptcy laws in your state. Each state has its own bankruptcy laws.For instance, some states protect you from losing your home in a bankruptcy, but not in others. You should be familiar with the laws before filing for bankruptcy.

Don’t use a credit cards to pay your taxes if you’re going to file bankruptcy. In many parts of the country, the debt cannot be discharged, and you could end up owing the IRS a whole lot more. This means using a credit card is not necessary, since bankruptcy will discharge it.

You might experience trouble with getting unsecured credit card or line after emerging from bankruptcy. If you do, apply for a secured card or two. This demonstrates to creditors that you’re seriously trying to restore your credit. After a while, you might be offered an unsecured card once again.

If a personal recommendation comes your way, get a word-of-mouth referral for a lawyer. There are way too many people ready to take advantage of financially-strapped individuals, so always work with someone that is trustworthy.

Filing a bankruptcy petition might facilitate the return of your property, like your car, electronics and jewelry items. You may be able to get your possessions back if they have been taken away from you within 90 days before you filed for bankruptcy. Speak with a lawyer who will be able to help you file the necessary paperwork.

Don’t pay for an attorney consultation and ask a lot of questions. Most attorneys offer free initial consultations, so meet with several. Only make a lawyer if you have met with several attorneys and all of your concerns and questions have been addressed. You need to decide right away. This offers you the opportunity to speak with numerous lawyers.

Before you decide to declare bankruptcy, be sure you have considered alternative options.For example, if you only have a little bit of debt, try a type of consumer counseling program. You may also find success in negotiating lower payment arrangements yourself, but be sure to document any get and new agreement terms in writing from each creditor.

Chapter 7

Be certain that you can differentiate between Chapter 7 and Chapter 13 differ. Chapter 7 is the elimination of all of your debt. Any ties you owe to creditors will be wiped clean. Chapter 13 bankruptcy though will make you work out a five year repayment plan that takes 60 months to work with until the debts go away.

Make sure that you meet with an actual lawyer and not an assistant or paralegal, because it is illegal for these people to give legal advice.

It is not uncommon for bankruptcies to elicit feelings of guilt, guilty or ashamed.These feelings can cause you to make rash decisions and provide no value.

Don’t wait until it is too late to file bankruptcy. It is a mistake to ignore your financial troubles, thinking they may go away on their own. It is easy you to lose control of your debt, and not taking care of it could eventually lead to wage garnishment or foreclosure. As soon as you’ve decided that you no longer have a handle on your debts, take action and discuss your options with a bankruptcy attorney.

Once you have tried every approach to your finances and still find no solution, you may find it necessary to consider bankruptcy. Don’t carry the weight of the world on your shoulders. If the circumstances that brought you here were not within your ability to control, let go of the stress and guilt associated with them. This article shares what you need to know about fixing your financial predicament.

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