Nobody is enthusiastic about filing for bankruptcy, but sometimes it is simply the right financial choice. This decision may not be easy, but it is comparatively easier when you know what the process entails and how to navigate it. Read on for knowledge and wisdom passed on from those who have gone through bankruptcy themselves.
Don’t use a credit card to pay off your taxes before filing for bankruptcy. In some places the debt can not be discharged, and you may still need to pay the IRS afterward. Transferring the debt to another medium (e.g. a credit card) won’t magically make a tax debt discharagable, either. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.
Although you can find many bankruptcy attorneys listed in your local Yellow Pages or online, it’s best if you can find one through the personal recommendation of a friend, family member or acquaintance. There are lawyers out there who will take advantage of your financial state and not deal honestly with you. Make sure your filing process goes as well as possible by finding a trustworthy lawyer.
No good will come of trying to conceal your assets or your liabilities in the bankruptcy process; you want to be scrupulously honest when you declare bankruptcy. Good or bad, you must tell your bankruptcy attorney everything about your financial situation. Bankruptcy can be a chance to simplify your finances, but any schemes you employ to conceal the truth can ruin that chance for you.
Don’t pay for an attorney consultation and ask him or her anything you want to know. Seek free consultations from a handful of lawyers, before deciding which one to hire. 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. This will give you extra time to interview several attorneys.
Bankruptcy is tricky and hiring a good lawyer will be a must. It is difficult to make all of the necessary decisions yourself, and expert guidance will be helpful. A qualified bankruptcy attorney can guide you through the filing process.
Before declaring bankruptcy, it is important to know your rights. Bill collectors will lie to you and say you can’t have their bill discharged. Only a small number of debts are not dischargeable, including student loans and child support obligations. If you are unsure about specific types of debt, check the bankruptcy laws in your state or consult an attorney.
Act when the time is right. In bankruptcy filing, timing is quite important. Sometimes you should file immediately; however, there are times when it is better to delay until the worst has passed. Speak with an attorney who specializes in bankruptcy to figure when is the best time to file, according to your situation.
Create a list of all of your finances before filing for bankruptcy. Failing to list these could cause the dismissal or delay of your bankruptcy petition. Even if you believe that certain financial information is inconsequential, do not avoid including it in your documentation. This can include side jobs, any vehicles to be counted as assets, and any loans you may currently have.
Watch how debts are paid off prior to filing. Bankruptcy laws generally don’t cover situations which occurred within a short time frame prior to filing, such as the previous 90 days worth of credit card debt. Do your research rather than making financial decisions blindly.
Realize that bankruptcy, ultimately, might be better for your credit than continuing to make late payments or miss payments on your debt. Bankruptcies can remain on your credit reports for 10 years, you can jump right into repairing your credit. Getting a fresh start is one benefit of bankruptcy.
When filing for bankruptcy, make sure that you hire a lawyer to represent you. An attorney can assist you both in ascertaining if bankruptcy is what you need and dealing with the court appearance. They will assist in all the necessary paperwork and cover all questions you have.
Make sure you hire a good bankruptcy lawyer. This kind of law is popular among inexperienced lawyers. Check your lawyer’s credentials! Be sure he or she is experienced and has the correct licensing. One resource that should prove extremely helpful is the Internet. You should be able to find the lawyer’s record online, as well as reviews from their previous clients.
In difficult financial situations, filing for bankruptcy is sometimes unavoidable. After reading this article, you should have learned some important information about the bankruptcy process. Making time to educate yourself from anyone who has gone through this before can make your personal trip through this less stressful.