Being in debt is far from fun, and it is even downright scary at times. Debt can quickly accumulate with a speed you aren’t prepared for. When you find yourself in such a position, it can be hard to know what to do. The following article will give you some pointers on what to do regarding bankruptcy if you are way over your head in debt.
Do not use a credit card to pay income taxes and then file for bankruptcy. You will find few states that discharge this kind of debt. You may also wind up owing a lot of money to the IRS. Keep in mind that if the tax debt is eligible to be discharged, then the credit card debt is also dischargeable. Just because your credit card could be discharged in bankruptcy does not mean you should use it.
It is important to remind your lawyer of any details that may be important to your case. Don’t just assume that the attorney will remember it automatically. Don’t fear speaking up since it affects your case and future.
Don’t file for bankruptcy until you know what assets of yours can and can’t be seized. The kinds of assets which may be exempted during bankruptcy proceedings are listed in the Bankruptcy Code. It is important to be aware of this list so you will know what assets are saved. Failure to do this could cause some ugly surprises down the road when you discover that your valuables must be seized.
If you aren’t totally honest about your assets when filing a bankruptcy petition, you could get into serious trouble. When you file make sure whoever is handling the process is fully aware of each and every financial detail. Do not leave anything out and come up with smart plan to manage the situation you are dealing with.
Don’t pay for the consultation with a lawyer who practices bankruptcy law; ask a lot of questions. Most lawyers will meet with you for free and give you helpful advice, so meet with several. Therefore consult with different lawyers and get a feel for them, then decide which one suits your needs After the consultation, you are not immediately required to come up with a decision. Take your time, and schedule consultations with more than one lawyer.
Familiarize yourself with the bankruptcy code before you file. Laws are ever-evolving. You must stay current with bankruptcy laws if you want to be successful in your challenge. Check the website of your state’s legislation or get in contact with your local office to learn more about these important changes.
Talk to a lot of different bankruptcy lawyers; most of them will give you a free consultation. Meet with the actual lawyer, not a paralegal or assistant, as they’re not allowed to give out legal advice. Be sure to check out a number of lawyers so that you will find one who is just right for you.
Filing for bankruptcy is not recommended when you have income more than your debts. Although bankruptcy may feel like a simple method of getting out of your large debt, it leaves a permanent mark on your credit history for up to 10 years.
When filing for personal bankruptcy you should always be aware of your rights. Certain unscrupulous creditors will try to convince you that certain debts can’t be discharged in bankruptcy. There are very few debts, such as child support or student loan debt, that can’t be bankrupted. If a debt collector tells you this false information, seek the advice of your bankruptcy attorney. You may also want to report the bill collector to the attorney general’s office.
There are often times when you feel that you have very little control over what is happening to you. This article just gave you a few good pointers on what you can do in order to gain control of your finances when facing bankruptcy. Having this information can change the way you face this challenge.