Filing for bankruptcy is a serious decision that should be considered throughly. It is crucial you educate yourself on the entire bankruptcy filing process. The advice in this article will get you off to a good start. Deciding whether or not to file for bankruptcy is a big decision. Proper and thorough research can alleviate some of that pressure.
Most people that file for bankruptcy owe a lot of money that they could not pay off. If this is your case, you should do some research about bankruptcy laws in your state. Bankruptcy laws vary from state to state. Your home is safe in some states, but in others it’s not. Become acquainted with local bankruptcy laws before filing.
Be sure everything is clear to you about personal bankruptcy via looking at websites on the subject. The United States Department of Justice, American Bankruptcy Institute, along with many other websites can provide you with the information you need. The more knowledge you have, the more you are able to make right decisions and find a new future.
Don’t use credit cards to pay your taxes if you’re going to file bankruptcy. Most states do not look at this debt as chargeable, and you could end up owing money to the IRS. If the tax can be discharged, so can the debt. So as you can see, in this situation there is no need to use the card when the debt will be discharged when you file for bankruptcy.
Honesty is of utmost importance during your filing, even though it may be tempting to “pad” your answers a little. It is vital that you disclose all information about your assets and income so there are no delays or penalties, such as a court barring you from filing again later in the future.
Use a personally recommended bankruptcy attorney instead of one found through the Internet or phone books. There are so many dime-a-dozen companies out there who make it a practice of preying on financial desperation. You need to make sure your bankruptcy goes smoothly, so find someone you know you can trust.
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. Most lawyers provide a consultation for free, so consult with many of them before picking which one you want to hire. Only make your decision if all your questions and concerns are adequately addressed. You do not need to make a decision immediately after the consult. So, this gives you plenty of time to consult with several attorneys.
Do some research about laws and legislation before 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 know what these changes are, go to your state’s website or contact the legislative offices.
There are two different kinds of personal bankruptcy you can file for: Chapter 7 and Chapter 13. Take time to research this online and see the pros and cons for filing each one. If you don’t understand the information you researched, consult with your attorney about the details before you decide which type of bankruptcy you want to file.
Look into filing Chapter 13 bankruptcy. With a consistent income source and less than $250k in debt, try filing for Chapter 13. Declaring bankruptcy can assist you in consolidating your debt so you can repay it more easily. Lasting anywhere from three to five years, this plan will allow you to be discharged from unsecured debt. Just ensure that you take necessary precautions, as missing one payment can result in the court dismissing your case.
Spend time with friends and family to keep your stress levels to a minimum through the bankruptcy filing process. Filing for bankruptcy is a difficult process. It can take a long time, take a great emotional toll and cause people to feel embarrassed and defeated. A lot of folks decide to hide themselves from the world around them until the end of the process. You shouldn’t do this, though, as staying away from the world can amplify any emotional issue you are having, and they could even morph into full-blown clinical depression. Therefore, it is important that you continue to spend quality time with your loved ones despite, in spite of your current financial situation.
A lot of people do not realize that there is more than one type of bankruptcy before they read this article. Don’t let all the information and regulations surrounding bankruptcy overwhelm you. Take a few moments to ruminate upon these tips. Then you will be prepared to make informed decisions about bankruptcy and your financial future.