When someone files for bankruptcy, it’s not a good thing. A bankruptcy will stay on your record for years and can affect the types of credit you are able to get. So do not think that bankruptcy will solve all of your problems, use this guide in order to fix your financial situation if possible.
Do not pay your taxes with credit cards that will be canceled when you file for bankruptcy. In many areas of the country, this debt will not be dischargeable, and you could be left owing a significant amount to the IRS. Generally speaking, debt incurred to pay taxes and the tax bills themselves are treated the same in a bankruptcy. There isn’t any reason to use a credit card to pay the tax bill since the bill can be discharged anyway.
Ask yourself if filing for bankruptcy is truly your best option. You have other options available like consumer credit counselling services. Before you take the drastic move of filling for bankruptcy and living with a long lasting bad credit history, make sure to consider using another way that may not be as damaging to your credit.
The most important tip a person filing for personal bankruptcy can remember and follow is to be completely transparent in all dealings. Withholding or lying about certain information can seriously worsen your financial situation. It could lead to being unable to file for bankruptcy or even legal trouble.
Always remind your lawyer of specifics that are important to your case. Don’t assume that he’ll remember something from a month ago; tell him again. This is your bankruptcy case, so do not be afraid to remind your lawyer of any key facts.
Although you can find many bankruptcy attorneys listed in your local Yellow Pages or online, it’s best if you can find one through the personal recommendation of a friend, family member or acquaintance. Although you may find a good lawyer through an advertisement, you can simply find a much better lawyer if the lawyer is recommended to you by someone who has gone through the process and who has the inside track on the lawyer’s true capabilities.
Keep at it! If you file for bankruptcy at the right time it could enable you to get your property back that you lost to repossession. If your personal property was repossessed within 90 days before your bankruptcy filing, you may have a chance of getting it back. Discuss your options with a good lawyer who can help you with the filing of your bankruptcy petition.
Chapter 13
Do some research to find out more about Chapter 13 and Chapter 7. Chapter 7 is the best option to erase your debts for good. All of your financial ties to the people you owe money to will disappear. Filing Chapter 13 differs by requiring you to agree to a 60 month plan to repay your debts before they are totally eliminated. It is vital that you know the differences between these types of bankruptcies, in order to find the option that’s best for you.
Most bankruptcy lawyers offer a free consultation, so meet with several before you decide on one. Ensure that your meeting is actually with the attorney, not with a paralegal or an assistant. People in these positions are unable to offer legal advice. It will be important to work with a bankruptcy lawyer that you feel comfortable with; a little comparison shopping will help you find the right one.
If you’re unsure, then you need to learn what a Chapter 7 bankruptcy can do for you, as opposed to what Chapter 13 does. Research both types of bankruptcy online, and weigh the positives and negatives each would offer you. If you don’t understand the information you researched, consult with your attorney about the details before you decide which type of bankruptcy you want to file.
Clearly, bankruptcy does not need to be inevitable. The information contained in this article can help you to avoid having to file for bankruptcy. Use what you’ve learned here to see how much you’re able to change things now so you aren’t harming your credit history.
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