Life can be difficult, especially when the bills start to pile up and you cannot find a way to get caught up on them. Then, things can go from bad to worse if your mortgage lender decides to start foreclosure proceedings on your home. If this happens, you should take action quickly if you want to keep your home, and the best thing to do is visit a lawyer that specializes in legal foreclosure defense.
Once the decision to rectify your financial woes with a bankruptcy filing has been made, you still face some important tasks and considerations. You want to take full advantage of this opportunity to have your debts forgiven and start fresh again, so a bit of work before you sign that bankruptcy petition is in order. Read on to learn more about some vital issues to consider before you file.
Have you lived in your state long enough to qualify for homestead exemptions?
When filing for bankruptcy, you can either hire a lawyer for help or do it on your own. People who file without a lawyer typically do this just to save money. Filing alone will be cheaper, because you will not have to pay an attorney for his or her services; however, filing alone can result in some problems. Here are several problems you might encounter if you file alone.
You might file the wrong chapter
Having property tax liens on your house is the typical result of failing to pay the taxes you owe. The state you live in will place a lien on your home shortly after the bill becomes delinquent, and this is something you will have to pay if you decide to sell your house. If you decide to file Chapter 7 bankruptcy, you might not have to pay the bill, though, but this will depend on what happens to your house in the bankruptcy case.
When you find yourself in a great deal of debt, it can be overwhelming. Depending on where you live, it may be difficult to find additional sources of income to help you get out of debt. In rural or remote areas, you may not have the option of working additional hours or finding a second job. Debt counselling may be able to help you turn your current financial situation around. When you go to debt counselling, you need to take a list of all of your debts, current expenses and income to the first session.