Bankruptcy is a difficult decision for anyone to make; however, it is sometimes necessary. It’s best to make the decision of filing for personal bankruptcy after doing a little research and gaining a clear understanding of the topic. This article contains information that has been gathered from others who have successfully navigated the bankruptcy process.
Do not try to get clever by paying your taxes via credit card before you declare bankruptcy in an effort to dodge your tax burden. Most states do not look at this debt as chargeable, and you could end up owing money to the IRS. Bear this in mind; if the tax can be discharged, then the debt can be as well. 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.
Use a personally recommended bankruptcy attorney instead of one found through the Internet or phone books. 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.
Don’t file for bankruptcy until you know what assets of yours can and can’t be seized. The federal statutes covering bankruptcy can tell you exactly which assets are exempt from forfeiture to pay off creditors. It is vital that you completely understand which assets are protected and which assets can be seized prior to filing bankruptcy. While it might not be possible to protect a particularly beloved possession, at least you will know in advance whether or not you risk losing it.
Don’t hide assets or liabilities when filing for bankruptcy. Wherever you file, that court has to be made aware of all details regarding your finances, positive and negative. Don’t hold anything back and formulate a smart strategy to deal with the reality you are facing.
You should never give up. You can often have property returned to you. Autos, jewelry and even electronics that have been repossessed, could be returned. If you have been subject to a repossession during the 90 days before your filing, you stand a good change of getting your property back. Speak with your attorney about filing the correct petition to get your property back.
Since the majority of attorneys are willing to provide no-cost initial consultations, it is smart to meet with more than one before you make a selection. Never settle for speaking with a paralegal or an assistant. They are not trained, nor allowed, to pass on legal advice. By meeting with several attorneys through a free consultation you will be able to choose which attorney you feel more comfortable with.
Your most important concern is to protect your home. Losing your home is thought of as common in bankruptcy cases, but it is by no means inevitable. Depending on if your home’s value has gone down or if it has a second mortgage, you might be able to keep it. If you meet certain criteria, you may be able to retain ownership of your home even after filing for bankruptcy.
Investigate your other alternatives before you decide you have to go with bankruptcy. You may find consolidating your debt may be simpler. The whole process of filing for bankruptcy can be a long, and hard one. Remember that your credit will be affected by the mark of personal bankruptcy for a long time. Therefore, you need to be sure that you really have no other option than to file for bankruptcy.
If keeping your vehicle is of great concern, ask your lawyer if you can secure a payment modification. Chapter 7 bankruptcy is one of the most common and effective. You must have bought the car 910 or more days before you filed, the loan must have a high interest rate, and you have to have a secure and steady working history in order for that to work.
Remember that your Chapter 7 filing may affect other people in your life as well. Debts that involved a co-signer can be discharged in Chapter 7 bankruptcy. However, the creditors could come after your co-signer and demand full payment for the debt.
It is not something you want to do; however, bankruptcy is a necessity for many struggling with debt. Now that you have read this article, you have been exposed to some ideas, insights and advice from those who have gone down this road before. By learning from others that have been in the same situation, it will make it easier on you in the long run.