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Money Problems? Learn More About Personal Bankruptcy


A bankruptcy filing is never welcome. A lot of people feel ashamed and embarrassed about filing for bankruptcy and do not want to deal with their situation. Use the article that follows as a way to learn about all of your options.

Consider all of your options before filing for bankruptcy. You should consider credit counseling. There are many different non-profit companies that can help you. These companies lower your interest and payments by working with your creditors. The payments you make go to the credit counseling company, and they send that money to your creditors.

Don’t just give your paperwork to your lawyer and not follow up afterward. Although your lawyers is educated on bankruptcy laws, it is ideal that you know as much as you can regarding the process. Due to the stress involved many people decide to let their lawyer to make all the decisions, but this is your life, not theirs.

If, after you file a Chapter 7 petition, you learn that the homestead exemption does not apply, it might be possible to convert your case to a Chapter 13. There are some times when your best option will be to change your case from a Chapter 7 filing to a Chapter 13 filing. Consult your attorney to see if this option is right for you.

Make sure bankruptcy is truely your only option before filing. Consult with a bankruptcy attorney to see if an interest rate reduction or debt repayment plan is an alternative to filing for bankruptcy. Loan modification plans can help if you are dealing with foreclosure. Your particular loan holders can provide a lot of assistance if you’re just willing to speak with them. You can negotiate lower rates, longer terms, and other means of repayment that may keep you from having to file a claim. Above all else, what creditors want is to get their money. Sometimes they would rather settle for a repayment plan instead of a debtor who is bankrupt.

No matter what, don’t give up! There may still be way to get repossessed items back after you file for bankruptcy. If you have property repossessed less than ninety days prior to filing your bankruptcy, you may be able to get it back. A qualified bankruptcy attorney can walk you through the petition process.

Many bankruptcy lawyers offer free consultations, so go to several before choosing one. It is important to meet with the actual lawyer, because paralegals or assistants cannot give you legal advice. Comparing different lawyers makes it possible to find one with whom you work well.

Take the time to find a simpler solution to your financial issues, before filing for bankruptcy. If your debts are really not overwhelming, you may find the assistance you need by consulting a consumer credit counselor. Also, you could try to get your payments lowered on your own. If you decide to do this, get a copy of anything you agree to.

Don’t think that loading up your credit card with tax debt and then filing for bankruptcy is an answer either. In most states, this debt won’t be discharged, and you could end up owing the IRS a whole lot more. Keep in mind that if the tax debt is eligible to be discharged, then the credit card debt is also dischargeable. Thus, it doesn’t make sense to use a credit card when it is going to be discharged when you file for bankruptcy.

As you have learned, bankruptcy can be avoided. The tips written in this guide can lead you to the right path in avoiding bankruptcy. Use the information in this article to change your financial future and never have to worry about credit again.