It is an unfortunate fact that many people are currently facing bankruptcy.The economic downturn in the economy has only exacerbated the situation. You need to approach bankruptcy with a little knowledge so that you can make wise decisions when it comes to filing bankruptcy.This article is going to give you with that.
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. In most states, this is not dischargeable debt. Therefore, you will end up owing the IRS a lot of money. Generally speaking if you can discharge the tax, you can discharge the debt. It is pointless to use credit cards if they can be discharged.
If you have unmanageable debt, you should read up on the bankruptcy laws in your state. Each state has its own set of rules regarding personal bankruptcy. For example, some states protect you from losing your home in a bankruptcy, while other states prohibit this. You should be aware of local bankruptcy laws before filing for bankruptcy.
You may still have trouble with getting unsecured credit after a bankruptcy. If this happens to you, apply for a secured card or two. This will prove that you are serious about getting your credit history while minimizing the bank’s risk.After a time, you may be able to get unsecured credit again.
Any bankruptcy consultation should be free of charge. Nearly all attorneys offer free initial consultations, so you should be able to meet with a few before you make a final hiring decision. Only choose an attorney once all your concerns are answered to your satisfaction. After the consultation, you are not immediately required to come up with a decision. You can take as much time as you need to meet with different lawyers.
Instead of getting your lawyer from the yellow pages or on the Internet, ask around and get personal recommendations. There are a number of companies who may take advantage of your situation, and it’s important to be sure your bankruptcy can go smoothly; take your time and choose someone you can trust.
The Bankruptcy Code lists assets considered exempt from the bankruptcy process. If you don’t read it, you might find yourself getting surprised when your favorite things are repossessed.
Hire a lawyer if you plan on filing for bankruptcy. You might not understand all of the various aspects to filing for bankruptcy. A personal bankruptcy attorney can help and guide you along through the bankruptcy process.
The person you file with needs to know both the good and bad aspects of your finances.
Filing a bankruptcy petition might facilitate the return of your property, like your car, electronics and jewelry items. You should be able to recover repossessed property if they have been taken away from you within 90 days ago. Consult with a lawyer who is able to assist you through the filing process.
Familiarize yourself with the bankruptcy code before you file. Make sure to get the most up-to-date information concerning the bankruptcy laws in your state. To know what these changes are, go to your state’s website or contact the legislative offices.
Before pulling the trigger on bankruptcy, be sure you have considered alternative options.If your debts are really not overwhelming, you can join a counseling program or straighten your finances out by yourself. You might also be able to negotiate lower payments yourself, but be sure to get any debt agreements in writing.
Be certain you talk to the lawyer, himself, since they cannot give legal advice.
Prior to declaring bankruptcy you really need to be sure that you’ve exhausted all your other options first. One example would be that a consumer credit program for counseling if you have small debts. You may have the ability to negotiate much lower payments, just be sure any debt modifications you agree to are written and that you have a copy.
Understand the differences between Chapter 7 bankruptcy and a Chapter 13 bankruptcy. Take the time to find out about each one online, and then figure out which one will be best for your particular situation. If you don’t understand the information you researched, meet with your lawyer and ask them prior to making a decision.
The whole process for bankruptcy is hard. Lots of people choose to disappear for a while until this is all done. This is not recommended because you will only feel bad and this may cause serious problems with depression. So, it is critical that you keep spending time with the ones you love, regardless of your financial circumstances.
Be certain that you can differentiate between Chapter 7 and Chapter 13 bankruptcy. In Chapter 7 most of your outstanding accounts will essentially be erased. With very few exceptions, the connections between you and your creditors will be severed. 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. Both options have advantages and drawbacks, so do your research before deciding.
It is not uncommon for bankruptcies to elicit feelings of guilt, guilty or ashamed. These feelings do not help you to make rash decisions and provide no value.
As you are no doubt aware, bankruptcy is much talked about in today’s economy. When deciding how to tackle your bankruptcy, make sure that you employ the advice that you read here.
Before filing a bankruptcy claim, make sure that your home is well protected. You don’t have to lose your home just because you are filing for bankruptcy. It depends what your home value is and if there is a second mortgage, as all this stuff comes into play when determining if you can keep the home. You may also want to check out the homestead exemption because it may allow you to keep your home.