The economy today is in a dreadful state. Even with a depressed economy, jobs are lost despite debts needing to be paid. Debts can lead to bankruptcy, something that is very bad. If you, a friend, or a loved one is in financial trouble, this article could help decide if bankruptcy is the right option.
One of the best ways to learn more about the bankruptcy process is to hit the Internet and look up reputable bankruptcy websites. The United States Department of Justice and American Bankruptcy Institute are two such places to look. As with everything in life, the more you know about filing a claim, the better off you’ll be. You can properly prepare when you know what you’re preparing for.
Think twice if you have struck upon the idea of paying off your taxes by credit card and subsequently filing for personal bankruptcy. In most states, this is not dischargeable debt. Therefore, you will end up owing the IRS a lot of money. One thing that you should remember is that if your tax is dischargable, your debt will also be dischargeable. Just because your credit card could be discharged in bankruptcy does not mean you should use it.
If you are going through a bankruptcy do not fall victim to guilt and pay off debts that you do not need to pay. Unless there are no other options, your retirement funds should never be touched. You may need to tap your savings, but don’t empty your savings account, as this could leave you in a difficult situation down the road.
Never shirk on the truth in your petition for bankruptcy. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
Do not hesitate to remind your lawyer of any details regarding your case. Just because you have told him something of importance that he will remember it. This is your future in their hands, so don’t be scared to mention it.
Once the bankruptcy is complete, you may find it difficult to receive unsecured credit. If you find that to be the situation, consider requesting secured cards. This will be a demonstration of the seriousness with which you view rebuilding your credit rating. Unsecured credit may be offered to you quicker than you think after doing so.
Don’t pay to for an initial consultation with a bankruptcy attorney, and thoroughly question each candidate. You can meet with a few lawyers before deciding on one. Most lawyers provide a free initial consultation. Make your decision after all of your questions have been answered. It is not necessary to make a final decision right away. This will give you extra time to interview several attorneys.
Make sure that you understand the difference between Chapter 13 bankruptcy and Chapter 7 bankruptcy. Chapter 7 is the best option to erase your debts for good. Any ties you have concerning creditors will definitely be dissolved. A Chapter 13 filing involves a repayment plan, though. Typically, you will make a partial payment against your debts over the next 60 months before the balance of the debts is lifted. It’s important to know what differences come with every type of bankruptcy. This will let you find out what’s best for you.
Prior to choosing a bankruptcy attorney, seek a free consultation with at least three attorneys. Be certain that the person you meet with is really a lawyer. Avoid meeting with paralegals or legal assistants because they cannot give you legal advice. Taking the time to compare lawyers will ensure that you get a person that you can be yourself around.
Once the initial filing period is over, ensure that you are getting out and enjoying life. Many people feel a lot of stress while they work through the bankruptcy process. The stress of dealing with bankruptcy could cause you to fall into a depression, unless you take steps to take care of yourself. You are getting a fresh start, and things will get better.
The economy is rebounding slowly, but there are still people who can’t find employment that pays a living wage. Even if you do not have a steady income, you may still be able to avoid bankruptcy. Hopefully, after reading this article, you picked up on a few of the things that will help you avoid filing for bankruptcy. Hopefully, everything works out for you!