The economy has been in a poor state for several years now. Even with a depressed economy, jobs are lost despite debts needing to be paid. And these debts get to the point where people end up filing for bankruptcy. If you, a friend, or a loved one is in financial trouble, this article could help decide if bankruptcy is the right option.
Many people find that they must file for bankruptcy protection because they have more debt than they can afford to repay. If you’re in this situation, learn about the laws where you live. Each state has its own set of rules regarding bankruptcy. You may find your home is safeguarded in one state, while in another it isn’t. Be sure you educate yourself on local laws prior to filing.
If you are thinking about paying off your tax obligations with a credit card and then filing bankruptcy, think again. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. Should the tax be dischargeable, the debt is often dischargeable as well. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.
Don’t file for bankruptcy until your represented by an attorney. There are many different aspects to filing bankruptcy, and you may not understand everything there is to know. When you engage the services of a bankruptcy lawyer, you can be assured of getting the help your need to proceed correctly.
Many bankruptcy attorneys offer the first consultation with no charge, so consult with several before deciding on one. Always ensure that the person you meet with is a real lawyer, not a legal assistant or paralegal. These people can’t give legal advice. By shopping lawyers, you will be more likely to find one that makes you comfortable about the process.
Once you have completed the bankruptcy filing, you should take time to do something you enjoy. The filing process is extremely stressful for a lot of the people who go through it. It is essential to cope with this stress well, to prevent becoming depressed. Your life will see improvement after you get past the bankruptcy.
Know the bankruptcy code backwards and forwards before filing. Here is one example, an individual who files for bankruptcy cannot transfer any assets for a year before the filing date. Additionally, it is against the law for any filer to boost up the debt amount they carry on any credit cards just before filing.
Know the rules of personal bankruptcy prior to petitioning. The bankruptcy laws are complex, and things could go badly if even one thing is out of place. Some mistakes can even lead to your case being dismissed. Make sure you check into your case and see that you have the paperwork filled out correctly. That way, you will have an easier road.
Once you decide to file, it is important to act in a more financially responsible manner. You must not doing anything that will raise your current level of indebtedness for several months before filing a bankruptcy petition. Judges may take into account your current credit history, in addition to your past credit history, when considering your bankruptcy case. It is important to show that you are committed to acting in a responsible manner going forward.
Write down every one of your debts. Once you have an idea of who you owe and how much you owe, you can figure out if bankruptcy is really an option for you or not. Review your records to determine the precise amounts that you owe. This process should not be rushed; the numbers should be exact.
If you find it necessary to file bankruptcy, hire a bankruptcy attorney. A good lawyer can properly advise you about the necessity of following through, simply a complicated process for you, and represent you when you need to go to court. Your lawyer will take care of the paperwork and help you understand what this process means for you.
When you hire a lawyer, find one who is experienced with bankruptcy cases. There are a lot of lawyers that you can pick from. And make sure that you do not always go cheap, hire a quality lawyer, they may be better suited to help you.
You can always refile for bankruptcy if your case is dismissed. The majority of the time, though, the automatic stay is in place for just one month when this occurs. It is possible to get an extension of the stay if you are able to prove to the judge that there was a good reason for your mistake and for your filing again.
The economy is not in great shape right now, and although things are slowly getting better, there are still large numbers of people out of work and in debt. Even if you do not have a steady paycheck, you still have options to help you avoid filing bankruptcy. Hopefully, you are now aware of how to get yourself or your loved ones on the right track in order to avoid bankruptcy. Let the force be with you.