1. Smart Tips About Personal Bankruptcy You Can Use Being in debt can be extremely stressful. Sometimes, it just snowballs from having a little bit of a financial issue to losing complete control in a short amount of time. Although it is a long and difficult process, there are ways to get through it unharmed and restore your finances. Read on to find tips, insight, and valuable information for clearing your debt and getting a firm grasp on your finances. Do not attempt to pay your taxes with your credit cards and subsequently file for bankruptcy. In most states, you will still owe money to the IRS and have to take care of the interest of your credit cards. The rule here is that if you can get the tax discharged then you can get the debt discharged. There isn't any reason to use a credit card to pay the tax bill since the bill can be discharged anyway. As filing bankruptcy becomes more of a reality, don't use your entire savings or your retirement funds to pay creditors or attempt to resolve insolvency. You should never touch your retirement accounts, unless you have absolutely no choice. You may need to tap your savings, but don't empty your savings account, as this could leave you in a difficult situation down the road. If you are meeting with a lawyer to discuss bankruptcy, the initial consultation should be free so ask every question you have. When you arrive at a consultation ask plenty of questions. You should also seek free consultations from several attorneys prior to choosing one. Make your decision after all of your questions have been answered. You do not need to make a decision immediately after the consult. Consulting with several attorneys will also help you find someone you trust. A free consultation is standard for bankruptcy attorneys, so shop around before settling on one. Be certain that the person you meet with is really a lawyer. Avoid meeting with paralegals or legal assistants because they cannot give you legal advice. Hiring a lawyer could help you become comfortable with the legal things that you will encounter. It is important to protect your home when filing bankruptcy. Just because you're going bankrupt doesn't mean that you also have to be homeless! Depending on certain conditions, you may very well end up being able to keep your home. You should also examine the possibility of taking a homestead exemption. This could apply if your income falls below the financial threshold. Learn about teh differences between Chapter 13 and Chapter 7 bankruptcy. Research both types of bankruptcy online, and weigh the positives and negatives each would offer you. Ask your bankruptcy lawyer to clarify anything you don't understand before making a final decision about which type of bankruptcy to file.
2. Consider if Chapter 13 bankruptcy is an option. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. Declaring bankruptcy can assist you in consolidating your debt so you can repay it more easily. This plan normally lasts from three to five years, in which you'll be discharged from unsecured debt. Remember that if you fail to make any of the payments on time, the court may dismiss your case. Think about all your options before pulling the trigger. For example, you can always talk with a lawyer to see about different options through creditors or other means that will not require wiping the entire slate clean. If you are facing foreclosure, consider a loan modification plan. Sometimes your lender will work with you to help pay off your debt by giving you a lower interest rate, forgiving late fees, or extending the time period of your loan. When all is said and done the creditors just want their money, and more often than not will work with you on a repayment plan. Don't file for bankruptcy without knowing your rights. Do not take debt collectors at their word when they tell you that a specific debt can't be discharged through bankruptcy. What you can't file on is very small, like student loans or child support payments. Should you face a creditor like this, and you are informed that the debt is not valid under the bankruptcy. These types of infractions should be reported. Make sure you are acting at the appropriate time. When it comes to filing for personal bankruptcy, timing is everything. There are occasions where it pays to delay and others where a quick decision is the best option. Consult with an attorney who specializes in bankruptcy so you know when it is a good time to file. Sometimes you get overwhelmed with life and you feel as if there's nothing that you can do about it. Use what you learned from this article to regain control of your financial situation. Use the tips written in this article to make a big difference in your finances.