Bankruptcy is not the end of the world, but it will require some mindfulness and diligence on your part to climb out of that hole and turn it into a positive. If you want to get through the bankruptcy process in a way that allows you to straighten out your financial life, there are some critical tips you will need to keep in mind. Consider the information in this article and use it to get through this time period.
Put Together A Quality Budget
When filing for bankruptcy, you need to be sure that you are able to agree to the payments that you make under Chapter 13 guidelines. For this reason, you should consider sitting down with a financial expert to make completely sure that you are entering into an agreement that you are able to handle. This way, you will be able to calculate your disposable income, in addition to your expenses and take-home income, to craft the best plan of action. This plan of action begins with a sensible budget, so do not cut corners during this portion of the process.
Find The Right Bankruptcy Lawyer For The Job
Without question, your lawyer will be the most important asset that you have on your side during the bankruptcy process. You will end up paying anywhere between $1,000-$3,000 or more on such a lawyer, but the price is well worth it. Make sure that you hire someone who can thoroughly explain each part of the process to you, so that you are never left in the dark and are able to participate in the decisions. For best results, you should also deal with a lawyer who can refer you to a credit counselor, so you can begin to pick up the pieces in your life after a bankruptcy filing.
Learn The Tax Implications
For best results, file your taxes prior to filing for bankruptcy. This will allow for a cleaner filing process, with less complications. Once you are ready to file, you will need to consider some tax implications that come with the process. Resist the temptation to use any type of refund on your debt, since this will only slow up the process of the filing. From now on, be mindful of the April 15 tax filing date every year, so that you do not incur any additional penalties that can harm your finances.
Keep these three points in mind so that you are well educated and prepared when filing for bankruptcy. Contact a local attorney, like Greg Dunn bankruptcy Attorney, with further questions.