A lot of people are in debt right now. They are hounded by creditors and collection agencies, and their bills show no sign of slowing down. If you find yourself in these circumstances, you might want to think about filing for personal bankruptcy. To learn more about the process and what it means for you, check out the information provided below.
Don’t use a credit card to pay off your taxes before filing for bankruptcy. Generally speaking, taxes are not a dischargeable debt. The delays caused by this sort of tactic could leave you owing the IRS a great deal in interest and penalties. Remember that if you can discharge the tax you can discharge the debt. Thus, it doesn’t make sense to use a credit card when it is going to be discharged when you file for bankruptcy.
If possible obtain a personal recommendation for a bankruptcy lawyer instead of randomly choosing one. 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.
Research what assets are exempt from seizure before you decide to declare bankruptcy. The Bankruptcy Code lists assets considered exempt from being affected by bankruptcy. It is crucial to read the list before you file for bankruptcy so you know whether your favorite items will be taken. If you don’t heed that advice, you might find yourself getting surprised when your favorite things are repossessed.
When you do meet with a lawyer make sure that they answer all of your questions and that they do not charge you for consultation alone. When you arrive at a consultation ask plenty of questions. You should also seek free consultations from several attorneys prior to choosing one. Only choose a lawyer if you feel like your questions were answered. Take your time before you decide to file after you meet with your lawyer. If you’re unsure, don’t hesitate to talk to multiple bankruptcy lawyers.
It is a good idea for you to hire a bankruptcy to handle your bankruptcy process. Bankruptcy is complicated, and having someone to help you navigate the process is crucial. An attorney specializing in personal bankruptcies can assist and make certain things are being handled correctly.
Speak to a bankruptcy attorney about what new laws may be going into effect before your bankruptcy filing. Bankruptcy laws are in constant flux, so just because you knew the law last year doesn’t mean that the laws will be the same this year. To learn about any changes, search the Internet or contact your state’s legislative office.
Before filing bankruptcy consider every available avenue. Maybe you can just consolidate debt to make it simpler to deal with. Bankruptcy is not a simple, breezy course of action that should be taken lightly. It will affect your access to credit in the future. Needless to say, if some alternative strategy will allow you to take care of your debts, you should give it a try before resorting to bankruptcy.
If you make more money than what you owe, filing for bankruptcy is not a good option. Remember that the record of your personal bankruptcy filing will be discernible on the report of your credit for as many as 10 years. For this reason, bankruptcy filing should not be taken lightly.
When you are looking at a Chapter 7 personal bankruptcy, you may well have debts to worry about for which you share responsibility with another person, such as a spouse, family member, or business partner. When you file under Chapter 7, you will no longer be legally responsible for any debts that were signed by yourself and a co-debtor. However, creditors can demand co-debtors pay the amount in full.
It is possible to get an auto loan or mortgage during the repayment period for Chapter 13 bankruptcy. It is much harder. Your trustee can help you acquire a new loan. You will need to make a budget and prove that you will be able to afford your new loan payments. You will also need to have a good reason why you need the item.
Now you should be aware that there is plenty of available help when thinking about filing for bankruptcy. If you go into the process armed with knowledge and confidence, you can wipe away your debt and give yourself a fresh start.