Many people fear the thought of bankruptcy. Increasing debt, along with being unable to support a family can be an actual nightmare for some. If these are issues that plague you, you will find this article full of helpful advice.
Do not consider paying off tax debt with credit cards and filing for bankruptcy afterward. It won’t work. In most states, this is not dischargeable debt. Therefore, you will end up owing the IRS a lot of money. Bear this in mind; if the tax can be discharged, then the debt can be 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.
Exhaust every other option before making the decision to file for personal bankruptcy. You can also avail yourself of other options, such as consumer credit counseling. Bankruptcy is a permanent part of your credit, so before you make such a big decision, you might want to explore all other choices so that your credit history is affected as minimally as possible.
Use a personally recommended bankruptcy attorney instead of one found through the Internet or phone books. Don’t allow yourself to be taken advantage of by predatory lawyers just because you are filing for bankruptcy. It is important to find someone trustworthy.
Before you decide to file bankruptcy proceedings, determine which assets will be safe. Bankruptcy exemptions are properties may not be seized during bankruptcy. It is important that you read this list before filing for bankruptcy, so that can find out whether or not your most prized possessions will be seized. 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.
You are going to get found out and get in trouble if you don’t disclose all your assets, so be totally honest from the beginning. All of your financial information, be it positive or negative, must be disclosed to those in charge of filing your case. They need to know it all. Don’t withhold information, and create a smart way of coping with the reality of the situation.
If you’re filing for bankruptcy soon, be sure you are going to hire a lawyer. It is unlikely that you will be able to comprehend all the various rules and regulations involved in bankruptcy law. A qualified bankruptcy attorney will guide you through the steps and help you do everything properly.
Many bankruptcy attorneys offer the first consultation with no charge, so consult with several before deciding on one. Ensure that your meeting is actually with the attorney, not with a paralegal or an assistant. People in these positions are unable to offer legal advice. Considering several different lawyers can help find someone to trust.
Put forth the effort to grasp the distinctions between Chapter 7 and Chapter 13 bankruptcies. By researching each type, you can begin to understand which method is right for you. Engage your attorney in a conversation about each type, and ask him to answer any questions you may have before deciding which kind is right for you.
Be certain that bankruptcy truly is your best option. It may be that all you really need to do is consolidate some of your debts. There is not easy process associated with personal bankruptcy. It will also limit your ability to get credit for the next few years. Because of this, you need to think of bankruptcy as a nuclear option; that is, a last resort.
It is not unusual for people to be worried about bankruptcy; the process is nerve-wracking. You may have been scared before, but this article has probably allayed your fears. Use the personal bankruptcy information here as you work your way through your financial situation and make your life situation better for you and your family.