For many, the decision to file for bankruptcy is a difficult one and one not taken lightly. Financial circumstances that seem insurmountable can make even the most responsible among us desperate enough to seek debt relief via bankruptcy. Being prepared for the practical issues that surrounds bankruptcy is vital, but don't neglect to pay attention to your emotional issues as well. If done correctly and with thoughtfulness, your bankruptcy can represent a learning experience and the fresh financial start you need.
You may need the help of a debt relief attorney if a credit card company or a collection agency is suing you. Whether an attorney negotiates with the creditor or debt collector to settle the debt for less than what you owe or raises a defense to the lawsuit, it's important to know your rights, especially when it comes to providing a defense.
Watch the Time
Although the law varies from state to state, if a credit card company has waited too long to file suit against you and the statute of limitations has passed, the debt may be too old to collect.
If you own your home and have fallen behind on mortgage payments along with your other bills, you may be facing foreclosure if you don't file for bankruptcy quickly. Should you reaffirm your home or make plans to move after your Chapter 7 discharge is granted? Read on to learn more about reaffirming your home in bankruptcy, as well as some factors you'll want to consider when deciding whether this is the right decision for you.
If it feels like the days till payday just keep multiplying or if you are struggling to pay your monthly obligations, you may be tempted to tap your retirement savings to alleviate your financial hardship. Before making that withdrawal, take a few moments to evaluate whether this is the right move for you.
1. Consider the Penalties
Unfortunately, if you cash in your retirement account before you are 59.5, the amount you actually get is significantly less than the balance that you have right now.
If you have decided to file for bankruptcy, you may be wondering if you can include any legal fees or attorney's fees in your bankruptcy discharge. While there are some circumstances where it may be possible to do this, it is not recommended. However, if you know you are so far down and out financially that there is no alternative but to include these debts in your bankruptcy, here are a few things you should know about what you can and cannot include.