If the IRS has begun repossessing your assets, bankruptcy could be of help. Although bankruptcy tends to destroy a person’s credit, it’s occasionally the only available option. Pay attention to what this article is teaching you about bankruptcies and their pitfalls.
Before undertaking the bankruptcy process, ensure you have made the correct decision. Consider any other options that are available to you, such as consumer credit counseling. Be sure to consider all options before filing for personal bankruptcy, as this will take a large toll on your credit score for the next ten years.
Always be honest and forthright when it comes to your bankruptcy petition. Withholding or lying about certain information can seriously worsen your financial situation. It could lead to being unable to file for bankruptcy or even legal trouble.
If you are meeting with a lawyer to discuss bankruptcy, the initial consultation should be free so ask every question you have. Free consultations are standard practice among bankruptcy lawyers, so interview multiple candidates before making a final decision. The lawyer who properly answers your questions is the one you should hire. It is not necessary to come to a decision immediately following the meeting. So you have sufficient time to speak with a number of lawyers.
Don’t file for bankruptcy until your represented by an attorney. Bankruptcy is complicated, and having someone to help you navigate the process is crucial. A specialized bankruptcy lawyer can ensure that you are handling your bankruptcy filing the right way.
Brush up on the latest bankruptcy regulations before you decide whether or not to file. Bankruptcy laws are in constant flux, so just because you knew the law last year doesn’t mean that the laws will be the same this year. Keep up with your current state’s laws and regulations to figure out what steps you should take.
Consider other alternatives before filing for bankruptcy. Those with smaller debts may find use in a program for consumer credit counseling. You could even negotiate for lower payments. However, you should ensure that you always obtain a written record of all the changes to your debt that you’ve agreed to.
Chapter 13 Bankruptcy
Consider filing a Chapter 13 bankruptcy. If your source of income is regular and your unsecured debt is less than a quarter million, Chapter 13 bankruptcy is something you are able to file for. You can secure your home under Chapter 13 and pay your debts with a payment plan. These kinds of plans usually range across 3, 4 and 5 years. Once this is done, all your unsecured debt will get discharged. Missing a payment under these plans can result in total dismissal by the courts.
The introduction to this article made it clear that filing for bankruptcy is always on the table if you are chest-deep in debt. Just be sure that you do not use it as your first choice. Knowing how to best go through the bankruptcy process can reduce one’s troubles in the long run and make it easier to retain one’s possessions.
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