There are quite a number of people who have been affected by the economy, and now find themselves buried in debt. Their bills pile up higher while debt collectors and creditors keep their phones ringing constantly. If this is happening to you, then you might want to think about personal bankruptcy. This article will help you to decide if filing for bankruptcy is the right option for you.
When people owe more than what can pay, they have the option of filing for bankruptcy. If this is happening to you, then learn about the laws where you live. There are greatly varying laws concerning bankruptcy, so it is important to make sure you are getting the correct information. For example, the personal home is exempt from being touched in some states, but not in others. Before filing for personal bankruptcy, be certain that you are familiar with the laws.
Credit Cards
You should avoid paying your taxes with credit cards and then immediately file for bankruptcy. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS. If the tax can be discharged, so can the debt. It is pointless to use credit cards if they can be discharged.
Make sure you are always providing honest documentation whenever you have to file for personal bankruptcy. Resisting the temptation to hide income or valuable assets from the bankruptcy trustee is a smart way to avoid potential complications, penalties, and the possibility of being barred from re-filing in the future.
Keep with what you have decided to do. You can often have property returned to you. Autos, jewelry and even electronics that have been repossessed, could be returned. You should be able to get your possessions back if they have been taken away from you within 90 days before you filed for bankruptcy. Consult with a lawyer who is able to assist you in the filing of your petition.
Seek a less serious option prior to filing for bankruptcy. For example, consumer credit counseling programs can help you by renegotiating your debts with your creditors into payments that you can afford. 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.
Most bankruptcy lawyers offer a free consultation, so meet with several before you decide on one. Always ensure that the person you meet with is a real lawyer, not a legal assistant or paralegal. These people can’t give legal advice. Be sure to check out a number of lawyers so that you will find one who is just right for you.
Understand the differences between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy. Go to a reputable website and research the benefits and detriments of each type of bankruptcy. If you’re really not sure how this all works after your research, meet with your lawyer and ask them prior to making a decision.
Bankruptcy should not be filed by anyone who makes more than their bills cost. Bankruptcy might seem like a good way to get out of paying your bills, but it will devastate your credit for the next ten years.
Find the right time to take action. Timing can be critical when it comes to personal bankruptcy cases. Sometimes, it is good to file immediately, but sometimes it is smarter to wait until you have passed through the worst of things. Speak with a bankruptcy lawyer to discuss the proper timing for you to file bankruptcy.
As you now know, you have plenty of assistance available for filing bankruptcy. With an open mind, you will be able to soon get the help you need to help your financial situation.
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