Bankruptcy is a difficult decision for anyone to make; however, it is sometimes necessary. The best way to deal with the process is to become educated on the subject. Ahead, you will find information from others like yourself, who have struggled with bankruptcy and its effects.
Do not even think about paying your taxes with credit and petitioning for bankruptcy right after. In many parts of the country, you cannot get this debt discharged, and in the end you will be left owing the IRS a big sum of money. The rule here is that if you can get the tax discharged then you can get the debt discharged. Because of this, transferring the debt to your credit card is pointless.
Don’t look at bankruptcy as a first step. Look at all the other options you may have first. It is possible to take advantage of other options, like consumer credit counseling. Bankruptcy leaves a permanent mark on your credit history, so before you take such a large step, you want to exhaust all other options so that the future effects on your credit history are as minimal as possible.
It should go without saying, but refrain from lying in your bankruptcy filings. It is vital that you disclose all information about your assets and income so there are no delays or penalties, such as a court barring you from filing again later in the future.
Always remind your lawyer of specifics that are important to your case. You cannot expect your lawyer to remember every important detail without some reminder from you. Ultimately, this is your bankruptcy and your financial future, so never hesitate to advocate on your behalf.
Prior to filing for bankruptcy, determine which assets, if any, are exempt from being seized. Check the bankruptcy laws in your state to find out if certain items are excluded from your bankruptcy filing. Prior to filing for bankruptcy, it is critical that you go over this list, so that you know if you can expect any of your most valuable possessions to be seized. If you are not aware of the rules, you could be setting yourself up for a lot of stress when your most important possessions are taken in the bankruptcy.
It is important to understand your rights when filing bankruptcy. Many times you can get repossess property back once bankruptcy has been filed. If you have property repossessed less than ninety days prior to filing your bankruptcy, you may be able to get it back. Consult with a lawyer who can advise you on what you need to do to file a petition.
Don’t ever pay a bankruptcy attorney for a consultation, and ask a lot of questions. Most attorneys offer free initial consultations, and you should take advantage of the chance to interview multiple practitioners. Only choose a lawyer if you feel like your questions were answered. There is no need to feel rushed to decide to file after you talk with your bankruptcy lawyer. You can take as much time as you need to meet with different lawyers.
If bankruptcy is an option for you, secure the services of an attorney. You may not know everything you need to know in order to have a successful outcome of your case. Choose an attorney versed in personal bankruptcy to make sure you don’t make mistakes.
A lot of bankruptcy attorneys will let you have a consultation, so try several out. Ask to speak with the licensed attorney and not a representative, who can not offer legitimate legal counsel. Seeking out different attorneys is all part of the process until you find someone that you can trust.
It is possible to keep your home. Filing bankruptcy does not necessarily mean that you will lose your house. Depending on certain conditions, you may very well end up being able to keep your home. You could also check out the homestead exemption. This lets you continue living in your house, depending on whether you meet certain financial requirements.
Before filing bankruptcy consider every available avenue. Sometimes consolidating your existing debts can make them more manageable. Filing a claim can take a long time and cause much stress. It will also make it tough for you to secure credit after your filing is complete. Because of this, you should be sure that bankruptcy is your only option before you file.
Consider Chapter 13 bankruptcy. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. That plan lasts approximately three to five years, and then you are discharged from unsecured debt. Missing a payment under these plans can result in total dismissal by the courts.
Nobody really wants to file for bankruptcy but it sometimes is just something they have to do. Here you have found some great advice and help to guide you in your bankruptcy. Know that you are not the first, and surely not the last. It will be a little easier to face bankruptcy after learning from people who have experienced it.