When you file for bankruptcy, it can not be described as a simple procedure. There are different chapters of bankruptcy, and you may qualify for one or more. Before you decide to file for personal bankruptcy, you need to educate yourself about it. The following tips can help you get started.
Don’t use credit cards to pay your taxes if you’re going to file bankruptcy. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS. Transferring the debt to another medium (e.g. a credit card) won’t magically make a tax debt discharagable, either. Just because your credit card could be discharged in bankruptcy does not mean you should use it.
Before undertaking the bankruptcy process, ensure you have made the correct decision. Avail yourself of other options, including consumer credit counseling, if they are appropriate for your situation. Be certain that bankruptcy is the only option you have before pursuing this course because bankruptcy is always evident on your financial and credit history.
When it appears likely that you will file a petition, do not start spending your last remaining funds on debt repayment. You should make every effort to leave your retirement accounts untouched until your retire. If you have to use a portion of your savings, make sure that you save some to ensure that you are financially secure in the future.
Always be honest with the information you give about your finances. Don’t hide income or assets from your lawyer or the bankruptcy trustee or you may find yourself in legal trouble.
Look for a bankruptcy lawyer that comes from a personal recommendation instead of someone random on the Internet or in the yellow pages. There are many companies who take advantage of financial desperation; that is why it is important that you get someone that is trustworthy.
Before you decide to file bankruptcy proceedings, determine which assets will be safe. Check the bankruptcy laws in your state to find out if certain items are excluded from your bankruptcy filing. It is important to be aware of this list so you will know what assets are saved. If you are not aware of the rules, you could be setting yourself up for a lot of stress when your most important possessions are taken in the bankruptcy.
Keep at it! If you file for bankruptcy, you might be able to reclaim certain property that has been repossessed, such as your car, electronics or jewelry. If you have any property in repossession that was taken less than three months before filing for bankruptcy, then there are good odds that you can get your property back. Interview and research attorneys before choosing one to help you with your bankruptcy.
Never pay to have a consultation with a lawyer, and ask a lot of questions. When you arrive at a consultation ask plenty of questions. You should also seek free consultations from several attorneys prior to choosing one. The lawyer who properly answers your questions is the one you should hire. After the consultation, you are not immediately required to come up with a decision. If you’re unsure, don’t hesitate to talk to multiple bankruptcy lawyers.
When a bankruptcy is imminent, retain a lawyer immediately. There are a lot of things to do during bankruptcy and that may be hard for you to understand on your own. A qualified bankruptcy attorney can guide you through the filing process.
Make certain that you comprehend the differences between Chapters 7 and 13. In Chapter 7 bankruptcy, your debts are all eliminated. All happenings with creditors will disappear. Chapter 13 is different, though. This type of bankruptcy entails an agreement to pay off your debts for five years prior to wiping the slate clean. It’s crucial that you know the differences between all of the various kinds of bankruptcies so that you may choose the best option for your situation.
Most bankruptcy lawyers give free consultation, so try to meet with these types of lawyers before deciding on hiring one. By law, paralegals and assistants can not give legal advice, so be sure that you are meeting with an actual attorney. Interviewing multiple attorneys is a good way to find the best fit.
If you are concerned about keeping your car, check with your attorney about lowering the monthly payment. Filing for Chapter 7 can help to lower your monthly payments on possessions such as your vehicle, helping to ease your financial load. The requirements are that your car purchase has to be greater than 910 days before filing, must have a loan that is high in interest, and must have a solid work history.
Now after reading the above article you see that bankruptcy must be thought over extremely carefully before going through with it. If it’s the best course of action for your current financial situation, then be sure to find an attorney with a lot of experience with personal bankruptcy so that you may be able to have a better financial future.