There are quite a number of people who have been affected by the economy, and now find themselves buried in debt. They are bothered by collection agencies and creditors and their bills are not being paid down. If you are having financial difficulty, it is a good idea to research all your options, including bankruptcy. Read on to learn if bankruptcy is the best decision for you.
Do not use a credit card to manage your tax issues and then try to file bankruptcy. In most states, this debt won’t be discharged, and you could end up owing the IRS a whole lot more. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. Therefore, you should not pull your credit card out for purchases if it is just going to be discharged during the bankruptcy.
If you are feeling like you are seriously going to have to file for bankruptcy then do not clear out your savings. Unless there are no other options, your retirement funds should never be touched. Although you may need to tap into your savings, you should not use up all of it right now and jeopardize the financial security of your future.
Before you decide to file bankruptcy proceedings, determine which assets will be safe. The Bankruptcy Code includes a list of the types of assets that are exempt from the bankruptcy process. It’s crucial to read that list before filing to see which of your prized possessions can be seized. If you fail to go over this list, you may be unpleasantly surprised sometime down the road if any of your most valued items are seized.
You should never pay for your first consultation with a bankruptcy attorney. Make the most of this free consultation by asking lots of questions. Most lawyers offer free consultations, so consult with a few before settling on one. Don’t hire an attorney who fails to address all your concerns and questions. Take your time before you decide to file after you meet with your lawyer. Take your time, and schedule consultations with more than one lawyer.
If you’re filing for bankruptcy soon, be sure you are going to hire a lawyer. It is difficult to make all of the necessary decisions yourself, and expert guidance will be helpful. A specialized bankruptcy lawyer can ensure that you are handling your bankruptcy filing the right way.
Always weigh your options carefully prior to deciding to dive head first into filing a bankruptcy claim. For instance, a consumer credit counseling program may be a better bet if your debts are relatively small. You might also be able to negotiate lower payments yourself, but make sure that you get written records of any debt modifications to which you agree.
Before filing a bankruptcy claim, make sure that your home is well protected. Just because you’re going bankrupt doesn’t mean that you also have to be homeless! 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’re not sure, however, you can always study the particular homestead exemption regulations. You will learn everything you need to know.
Before filing for bankruptcy under Chapter 7, make sure that you consider the implications this will have on any of your co-debtor, who are usually family members, close friends or business associates. Speak to an attorney or read the bankruptcy laws in your state to find out if certain loans can be excluded from your filing. However, your creditors will be able demand that your co-debtor pays the debt off in full.
Bankruptcy is a difficult and stressful process, and you will need all the help you can get. Look for a good attorney who can help you through the process. Don’t make your choice to retain a particular lawyer simply because they are the cheapest. The cheapest attorney may not be the best, but the most expensive may not be the best either. Ask for referrals from folks who have filed and check reputations with the BBB. It is even possible to watch a court hearing in order to see how well an attorney handles a case.
Be certain you are totally aware of the laws of bankruptcy before you file. You need to know certain things, like the fact that it’s illegal to transfer any asserts 12 months before filing your claim. Also, it is against the law for a person to acquire more debt on their credit card prior to filing.
Do not forget to list each and every debt you have. Failing to list these could cause the dismissal or delay of your bankruptcy petition. All financial information needs to be considered by the court. That may include secondary jobs, any cars or trucks you want to be considered assets and any current loans.
Research the rules and regulations of personal bankruptcy before you file. There are many pitfalls when it comes to the code pertaining to personal bankruptcy that can lead to a lot of unwanted issues. Making mistakes can have an effect on the outcome of your case. This is exactly why it’s imperative that you take the time necessary in order to research what you can about bankruptcy. This will make things easier in the long run.
This article should have made it clear that there is plenty of help out there for someone who wants to file for bankruptcy. If you approach this with a clear mind and in the right way, it can give you the debt relief that you have longed for and will enable you to get back on your feet.