If you are in debt and on the verge of filing for bankruptcy, then do not worry any longer. Do not worry, there are actually ways around filing bankruptcy. If you are ready to consider alternatives to a bankruptcy filing, the advice presented here may help.
Do not use a credit card to pay income taxes and then file for bankruptcy. In a lot of places, the debt cannot be discharged, and you may still owe money to the IRS. Remember that if you can discharge the tax you can discharge the debt. There isn’t any reason to use a credit card to pay the tax bill since the bill can be discharged anyway.
See if there is an alternative you can use before declaring bankruptcy. For example, consumer credit counseling programs can help if your debt isn’t too large. You may have luck negotiating lower payments by dealing directly with creditors, but be sure to document any get and new agreement terms in writing from each creditor.
Protect your house. Filing for bankruptcy does not mean you have to lose your home. Depending on certain conditions, you may very well end up being able to keep your home. Another option is the homestead exemption that has certain income and financial requirements, but may also allow you to keep your home.
It is important to know how Chapter 7 filings differ from Chapter 13 filings. Get a good grasp of the pluses and minuses each type of filing involves by researching both of them extensively. Engage your attorney in a conversation about each type, and ask him to answer any questions you may have before deciding which kind is right for you.
Don’t isolate yourself from family and friends. The process for bankruptcy can be brutal. It is long, hard and sometimes leaves people feeling guilty or ashamed. Lots of people think they need to hide from everyone until this is all done. On the other hand, isolation of a self-imposed nature can only worsen your feelings, opening the door to mental depression to join your financial depression. It’s imperative that you spend as much time with loved ones as you can, even in the midst of your financial dilemma.
There is a great amount of emotional and mental stress associated with filing for bankruptcy. Engage a competent lawyer in order to avoid excess stress and keep everything on track. Don’t skimp when hiring a good lawyer. What you need is a thoroughly competent lawyer, and this does not imply that you have to pay through the nose. Get referred from others who’ve been in the same situation, check the BBB, and interview several people through free consultations. Attending a court hearing will give you experience as to how lawyers handle these cases.
Do not put off filing for bankruptcy. Many people simply try to ignore their financial troubles, hoping that they will somehow go away, but this is a huge mistake. It is too easy for debt to mount up and become uncontrollable, which could lead to loss of assets or wages. When you find that you cannot take care of your debts anymore speak with an attorney for bankruptcy to talk things over.
You can better your financial situation with good planning. The more time that you can give yourself to improve your financial status, the better. Remember to keep working towards your goal of avoiding bankruptcy. Plan your future out now.