Saturday 28 June 2014

Is Bankruptcy The Best Option For You?

By Jessie Dilgado


Are you having financial problems and think bankruptcy is the lone choice you have? You aren't alone. There are a lot of people who have turned to bankruptcy as the solution to their financial problems. This article will provide you with bankruptcy tips to ensure everything goes as smoothly as it should.

Before filing for personal bankruptcy, make sure you are doing the right thing. Look into credit counseling to see if it could help you work out of your debt without bankruptcy. Before you take the drastic move of filling for bankruptcy and living with a long lasting bad credit history, make sure to consider using another way that may not be as damaging to your credit.

If you are going through a bankruptcy do not fall victim to guilt and pay off debts that you do not need to pay. Don't touch retirement accounts unless you don't have a choice. Dipping into savings may need to happen, just don't totally wipe it out, or you might not have much financial security later.

Try going to a personally recommended bankruptcy lawyer instead of using a phone book or the Internet. There are lawyers out there who will take advantage of your financial state and not deal honestly with you. Make sure your filing process goes as well as possible by finding a trustworthy lawyer.

Don't try to hide anything if you are filing for bankruptcy, as this will hurt you in the long run. Good or bad, you must tell your bankruptcy attorney everything about your financial situation. Never hide anything, and make sure you come up with a well devised plan for dealing with bankruptcy.

When you do meet with a lawyer make sure that they answer all of your questions and that they do not charge you for consultation alone. Almost all lawyers will give a free consultation, so meet with more than one before making a decision on whom to hire. Choose an attorney who is experienced, educated and well-versed in bankruptcy laws. Take your time before you decide to file after you meet with your lawyer. This offers you the opportunity to speak with other attorneys.

Don't file for bankruptcy until your represented by an attorney. You might not understand all of the various aspects to filing for bankruptcy. An attorney will make sure that everything is being done correctly.

Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. Not only can you repay your debts through consolidation, personal property can be kept, as well as real estate. Generally, this stays in effect for up to 5 years. Afterwards, your unsecured debts clear from your accounts. Remember that missing a payment to the plan will result in your case being dismissed.

If you are making more money than you owe, bankruptcy should not even be an option. Sure, bankruptcy can get rid of that debt, but it comes at the price of poor credit for 7-10 years.

Before declaring bankruptcy, it is important to know your rights. Do not take debt collectors at their word when they tell you that a specific debt can't be discharged through bankruptcy. Only a few kinds of debt, like student loans or child support, are ineligible for bankruptcy. If the debt collector tries to tell you that your debts, which do not fall into those categories, cannot be bankrupted, take a note of it, look up the debt type, and report them to your state's attorney general office.

Refrain from feeling shameful about your bankruptcy. A lot of people have a negative opinion of bankruptcy, mostly because they misunderstand this procedure. But, such emotions get you nowhere, and they can cause significant mental issues to emerge. Having the right outlook during a tough financial upheaval is a great attitude in coping with bankruptcy.

Be sure you know the bankruptcy laws before you think about filing. For instance, it's prohibited for an individual to transfer assets to someone else a year before filing for bankruptcy. Also, a person cannot legally increase their debt amount on credit cards prior to filing.

Like you have heard, you are not alone in your financial problems. Others just like you are filing for bankruptcy as well. But with the benefit of the information you have here, you have a head start on your journey. Ensure the ease of the bankruptcy process with these tips.




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