Current economic conditions are tough for many people. The result of the dreadful economy is that many people are losing their jobs and falling into uncontrollable debt. Being unable to pay your debts will eventually lead to bankruptcy, which is the last hope for many people. If you or someone you know is in jeopardy of going bankrupt, then read this article to figure out how to get out of this situation.
Think through your decision to file for bankruptcy carefully before going ahead with it. You can also avail yourself of other options, such as consumer credit counseling. Since your credit history will forever note the bankruptcy, you want to make sure that you have tried everything else before you take an action such as this, in order to minimize the effect it will have with regard to your credit history.
Most people that file for bankruptcy owe a lot of money that they could not pay off. If this sounds familiar, you should read up on the bankruptcy laws in your state. Bankruptcy rules vary by jurisdiction. In some areas, your residence may be completely exempt, but in others, it will not be. It is best to become familiar with your state’s laws regarding bankruptcy before you take the steps to file.
Be sure you know how Chapter 7 and Chapter 13 differ. All debt will be eliminated with Chapter 7. You will be removed from any contracts you have with your creditors. If however you enter Chapter 13, you will go into a five year repayment program prior to your debts dissolving entirely. Take the time to learn more about these different options so you can make the best decision possible.
Before filing a bankruptcy claim, make sure that your home is well protected. Just because you’re going bankrupt doesn’t mean that you also have to be homeless! Depending on whether the value of your home has decreased or if you have a second mortgage on the home, you may end up keeping it. There are other options such as a homestead exemption which offers you a chance to remain in your home, depending on whether or not you meed certain financial conditions.
If you’re unsure, then you need to learn what a Chapter 7 bankruptcy can do for you, as opposed to what Chapter 13 does. Be sure you go on the Internet and do your research to see what’s best for you. If you do not understand what you are reading, talk to your attorney before making that serious decision.
Think twice if you have struck upon the idea of paying off your taxes by credit card and subsequently filing for personal bankruptcy. The fact is that the credit card debt will be ineligible for discharge, and your tax debt may increase. In most cases, you can use the adage that “a dischargeable tax is a dischargeable debt.” This makes using a credit care irrelevant, since bankruptcy will discharge it.
The economy is rebounding slowly, but there are still people who can’t find employment that pays a living wage. There are some things that can be done to prevent filing for personal bankruptcy even for those who have no steady income. This article should have given you some solid advice for staying afloat in tough times. Good luck to you.
Want to get out of debt and make more money from home? If so, the most critical factor to make it a reality is to change your mindset. Orrin Woodward,New York Times best-selling author is one of the foremost authority in balancing different aspects of life to build stronger, sustainable, and repeatable profitable enterprise from home. Orrin Woodward is also a co-founder of the LIFE business.