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Your Options When Seeking Bankruptcy Advice
By plrprousers | January 1, 2009
Everyone makes mistakes, sometimes expensive ones. Credit card debt in America has risen to a record $790 billion, and many Americans owe more than $20,000 on an unsecured credit card. Despite how immersed in personal debt people are, there is still a reasonable hesitation about taking “the easy way out” by declaring bankruptcy. Naturally, bankruptcy advice is the most valuable asset some families can have at this difficult time in their lives.
Bankruptcy advice has gotten more liberal over the years due to changing laws. To avoid scores of debtors flooding onto the streets with no property and nothing left to live for, the laws have changed to allow debtors to keep certain property, despite filing for bankruptcy. The debtor may keep up to $2,500 in cash, $2,400 in auto equity and unlimited 401k funds. Additionally, by law, employers cannot fire an employee who files for bankruptcy, although potential employers can choose not to hire a new employee based on that factor. Often with a filing, debtors will need to attend credit restoration and debt management courses.
When you’re seeking advice about bankruptcy, be sure to double-check what can and can’t be discharged. For instance, you’ll still have to pay off Uncle Sam if you owe taxes for the past three years. However, if you have personal income taxes over 3 years old, then you can discharge them through bankruptcy. Fiduciary taxes cannot be discharged, nor can most student loans and liens. If you owe child support or alimony, you will still have to pay up. If you don’t list debts on your bankruptcy petition, then they will not be covered. If you have debts from drunk driving or other “willful and malicious” harm, you’ll still have to pay your dues. However, there are many things that can be removed when you file for bankruptcy, such as all unsecured credit card debt, wage garnishments, utility termination, fraudulent credit claims and foreclosure.
After you receive bankruptcy advice, there are a few things to consider before you file. First, be sure you can’t negotiate with your creditors, reduce your balances with a settlement letter or arrange a monthly payment plan. Generally speaking, if you can only afford minimum monthly payments on your bills and cannot pay off all your balances in five years, then you should file for bankruptcy and then focus on credit restoration services.
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Bankruptcy does appear a lucrative remedy for all debt problems but you must find out beforehand whether this remedy is available to you or not. Bankruptcy is a long and confusing process. I think rather than going for bankruptcy you should try to consolidate your debts. There are many sites that provide advice & resources to resolve debt issues. I was pretty satisfied with Bills.com resources in solving my problem. Else you can go for debt settlement as it will help you in reducing your debt amount also. Freedom debt relief is a good option.