Top Tips For Anyone Thinking About Bankruptcy
People often shudder at the mention of the word bankruptcy. Increasing debt, coupled with the inability to support their families is a real nightmare for many people. The following advice will greatly help you if bankruptcy is a fear of yours.Don’t think that loading up your credit card with tax debt and then filing for bankruptcy is an answer either. In most states, this debt won’t be discharged, and you could end up owing the IRS a whole lot more. One thing that you should remember is that if your tax is dischargable, your debt will also be dischargeable. So as you can see, in this situation there is no need to use the card when the debt will be discharged when you file for bankruptcy.Brush up on the latest bankruptcy regulations before you decide whether or not to file. The laws are constantly undergoing changes, so you must stay on top of them if you are going to file for personal bankruptcy correctly. If you are not sure about the current laws all you have to do is look into what laws have been passed.Protect your house. Filing for bankruptcy does not guarantee that you will lose your house. For instance, if your home value has dropped recently, or even if you happen to hold a second mortgage, you may not necessarily lose the home. You could also check out the homestead exemption. This lets you continue living in your house, depending on whether you meet certain financial requirements.
Interest Rates
Look at all the alternatives to bankruptcy before filing. Speak with an attorney who specializes in bankruptcy to find out if alternatives, such as a debt repayment plan or a reduction of your interest rates, might be better for you. If you are facing foreclosure, consider a loan modification plan. The lender may be willing to reduce interest rates, eliminate late charges or extend the life of the loan. Because of the fact that creditors would like to see their money they are likely to offer repayment plans versus not getting paid at all if you file for bankruptcy.If you are concerned about keeping your car, check with your attorney about lowering the monthly payment. In many cases, you can reduce your payment by filing a Chapter 7 petition. But, your car has to have been bought at least 910 days before you file. Also, it must come from a high interest loan and you have to have been consistently working.
Chapter 7
Remember that your Chapter 7 filing may affect other people in your life as well. Once you file for Chapter 7 bankruptcy protection, you no longer have legal responsibility for debts that you and any co-signers originally agreed to. However, anyone sharing the loan with you may be forced to pay back the entire amount for the amount in full, which spell financial disaster for them.
Car loans or mortgage loans are still a possibility when you have filed for Chapter 13. There are extra hoops to jump through. You have to meet with your trustee to get approval for the new loan. Draw up a budget, demonstrating that you can afford the new loan payment. Also, you need to be ready to say why you’re going to need the item.When filing for bankruptcy, ensure you have listed all of your financial obligations. If the court thinks you are attempting to conceal information, your petition could be denied. All financial information needs to be considered by the court. Don’t forget about side jobs, loans you’ve taken out or vehicles that might count as assets.When you have decided that bankruptcy is the right route for you to take, you need to act relatively quickly. Yes, it may be hard to admit the need for help, however, if you try to stall from getting help your situation can only worsen. Speaking with someone knowledgeable as soon as you can helps get you started on the bankruptcy process before your situation becomes any worse.It is important to know that you may bet better off filing for bankruptcy than continuing to be in debt. While the bankruptcy will appear on your credit report for the next decade, you can start repairing your damaged credit right away. Among the advantages of bankruptcy is that of a clean slate.List out who you owe money to. This is what you will use when you file for bankruptcy, so make sure every debt you owe is on the list. Be sure to verify the exact amount of each debt you owe by checking paperwork or calling your creditors. Take your time during this process; don’t rush and make sure all of your figures are correct.Select a bankruptcy attorney wisely. This type of legislation is popular for the inexperienced. It is important that the attorney you pick is experienced and has the proper licenses. Internet research is a great tool for investigating a potential lawyer. You will also find information from clients who have dealt with them.Several months after discharge, get copies of credit reports from the big credit reporting agencies. Be sure the report is accurate with your closed credit accounts and discharged loans. If any discrepancies appear, check on them immediately. This will allow you to start fixing your credit.It is normal to feel apprehensive about filing for bankruptcy, because it is not an easy process. Now that you have read this article, you now never again have to be scared of bankruptcy. Start making use of this bankruptcy advice right now and give your financial life a fresh new start.
