Wednesday, October 10, 2012

Steps To Know And How Bankruptcy Affects You | Siben & Siben ...

TIP! Research your options before declaring bankruptcy. Given that you are in dire financial straits when you file for bankruptcy, you will likely be tempted to save money by handling your filing on your own.

When a person needs to file for personal bankruptcy, it is not ever a happy moment. The need to file for bankruptcy is usually the result of misfortune. The process can be embarrassing and can cause a person to feel secretive when it comes to finance. Read this article to learn more about bankruptcy and make the best decision.

Credit Card

TIP! There are circumstances where you are able to keep your car during a bankruptcy so be sure to ask your lawyer about possibly reducing the payments. Chapter seven bankruptcy often provides for the lowering of payments.

Bankruptcy is never a way to avoid paying your fair share of federal taxes. Therefore, you should not use any credit card if you are going to file bankruptcy. The reason for doing this is that they assume that it is possible to avoid paying taxes because the balance is in the form of a credit card balance. However, legislation concerning bankruptcy forbids this and leaves you stuck with owed taxes and interest accrued.

TIP! Once your bankruptcy filing is under way, take the time to decompress a little. Filing is the most intensive step in the process, so afterwards it?s important to let go of some of your stress.

Learn and gain a firm grasp of the differences in applying for Chapter 7 bankruptcies versus Chapter 13 bankruptcies. Read up on the topic and familiarize yourself with the benefits and drawbacks of both variations. If anything you see is unclear or doesn?t make sense, go over it again with your attorney before making the final filing decision.

Student Loans

TIP! If you have a co-debtor, consider the ramifications that filing a Chapter 7 bankruptcy will have. You may have your responsibility for your portion of the loan discharged under Chapter 7.

For example, if a student loan is the major player in your debt, bankruptcy will be of little benefit. Laws and regulations are different from one state to the other, but student loans remain among the hardest debts to cancel. You can get out of paying your student loans in a few situations, for instance, if the job you want to school for does not exist anymore.

TIP! Do not use your retirement fund or savings to pay off creditors. Unless there is no other choice a retirement account should not be used.

Once your bankruptcy is over, request a copy of your credit report from all of the credit reporting bureaus. Check to make sure that your report accurately shows that your debts have been discharged and that closed accounts are also updated. Challenge discrepancies as soon as possible in order to repair your credit.

TIP! Before filling for bankruptcy, determine which assets will be exempted from seizure. The Bankruptcy Code provides a listing of the various asset types that are not included in the bankruptcy process.

It is important to stay involved as much as possible during the bankruptcy process, and not leave it all in your attorneys hands. You must know everything that is occurring, and you shouldn?t be afraid to call and ask them. Law firms are busy, and an overworked lawyer or paralegal might make an error on your paperwork. Contrary to what many of us believe, attorneys are human too!

TIP! Use a personally recommended bankruptcy attorney instead of one found through the Internet or phone books. Some companies just want to take advantage of you, so it is important that you have help from someone you trust.

It is important to look at your financial situation from all possible angles before you decide to file for bankruptcy. You might be able to address your debts by arranging a repayment plan or a reduction in your interest rates. Get professional advice on these matters from a bankruptcy lawyer. If a foreclosure is on your horizon, look into loan modification plans. A good lender will be able to assist you in a variety of ways, from getting rid of your late charges to reducing interest rates. You may even be able to get a loan extension, giving you the extra time you need to pay your debt off. Creditors want their money. Often, they are willing to work out repayment plans with you in order to get it.

Financial Situation

TIP! Before filing for bankruptcy, establish the fact firmly in your mind that you have nothing to be ashamed of. For many people, bankruptcy is a source of guilt and feelings of worthlessness.

Depending on your current financial situation, it may or may not be necessary for you to file for bankruptcy. The advice in this article will be valuable as you work to find another financial path. Begin today with what you learned here and soon you will see positive changes in your financial situation, so you can avoid the harmful process of filing for bankruptcy

Source: http://www.sibensiben.com/long-island-injury-lawyer-blog/uncategorized/steps-to-know-and-how-bankruptcy-affects-you-3

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