Weaving Your Way Out Of The Personal Bankruptcy Maze

by Terrence K. Magee on April 11, 2014

Bankruptcy is a huge financial decision that should not be lightly considered. Learn everything you can beforehand.

Don’t use a credit card to pay your taxes if you’re going to file bankruptcy. In most states, you cannot get this debt discharged, and you may still owe money to the IRS. This makes using a credit care irrelevant, when it will just be discharged.

If a personal recommendation comes your way, get a word-of-mouth referral for a lawyer. There are plenty of companies who know how to take advantage of people who seem desperate, so you must ascertain that your attorney can be trusted.

The person you choose to file for bankruptcy has to have a complete and accurate picture of your financial condition.

Before making the decision to file for bankruptcy, ensure that all other options have been considered. For example, a consumer credit counseling program may be a better bet if your debts are relatively small. You may have luck negotiating lower payments by dealing directly with creditors, but make sure that you get written records of any debt modifications to which you agree.

Chapter 13 Bankruptcy

Be certain to grasp the distinction between Chapter 7 and Chapter 13 bankruptcy. Chapter 7 is the elimination of all of your debt. All of your financial ties to the things that tie you owe money to will disappear. 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.

Understand the differences between Chapter 7 bankruptcy and 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 the information you read is unclear to you, consult with your attorney about the details before you decide which type of bankruptcy you want to file.

Bankruptcy can cause anxiety and a host of stress. To relieve yourself of some stress and keep thing organized, make sure you hire a reputable bankruptcy attorney. Do not hire based solely on price. It is not necessary to hire 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.

As you can see from the above article, bankruptcy doesn’t just happen. By going through the process correctly, the outcome will be further in your favor than it might otherwise have been. By following the above advice, you will make fewer mistakes and find yourself better prepared.

This information served as a great tutorial regarding What Is Chapter 13 Bankruptcy. Luckily, this piece includes all you require to move forward successfully. You do, however, need to apply what you’ve learned to realize any benefit from this article.

Comments on this entry are closed.

Previous post:

Next post: