A lot of folks in modern times are deep in debt. They are harassed by collection calls and creditors all while the bills keep piling up. Filing for bankruptcy might be the best option for you. The article below will help you figure out if bankruptcy is right for you.
You should check with the personal bankruptcy resources available online to educate yourself thoroughly before you begin the process. The United States Department of Justice and National Association for Consumer Bankruptcy Attorneys provide excellent information. The more you know, you can be confident you are choosing the right thing and that you are taking the right road to make sure your bankruptcy proceeds as easily as possible.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. Most of the time, you cannot discharge this debt. As a result, you will owe the IRS a lot of money. Transferring the debt to another medium (e.g. a credit card) won’t magically make a tax debt discharagable, either. So it does not help you to put the tax bill on your charge card if you know the debt will be discharged anyway.
One of the most important things to remember when filing for bankruptcy is to be honest and truthful every step of the way. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
Prior to filing for bankruptcy, research which assets will remain exempt from creditors. The Bankruptcy Code contains a list of various assets that are excluded from bankruptcy. You need to compare this list to the assets you own so that you are not surprised when certain assets are seized. If you neglect this important step, you might be blindsided when a possession that is important to you is taken to repay creditors.
Don’t pay for the consultation with a lawyer who practices bankruptcy law; ask a lot of questions. Most lawyers will meet with you for free and give you helpful advice, so meet with several. Only choose a lawyer if you feel like your questions were answered. You don’t need to decide what to do right away. You can take as much time as you need to meet with different lawyers.
Bankruptcy is tricky and hiring a good lawyer will be a must. There are many different aspects to filing bankruptcy, and you may not understand everything there is to know. A specialized bankruptcy lawyer can ensure that you are handling your bankruptcy filing the right way.
Speak to a bankruptcy attorney about what new laws may be going into effect before your bankruptcy filing. These laws change regularly and you should stay up-to-date so you can make the best decisions. Your state’s legislative offices or website will have up-to-date information about these changes.
Before making the decision to file for bankruptcy, be sure you have considered alternative options. For example, consumer credit counseling programs can help you by renegotiating your debts with your creditors into payments that you can afford. You may also find success in negotiating lower payment arrangements yourself, but be certain to get any arrangements with creditors in writing.
It is important to understand clearly the benefits of a Chapter 7 or 13 bankruptcy. Get a good grasp of the pluses and minuses each type of filing involves by researching both of them extensively. If anything you see is unclear or doesn’t make sense, go over it again with your attorney before making the final filing decision.
Be certain that bankruptcy truly is your best option. You may find consolidating your debt may be simpler. Bankruptcy is not a simple, breezy course of action that should be taken lightly. It will also harm your ability to secure credit in years to come. Because of this, you need to think of bankruptcy as a nuclear option; that is, a last resort.
Now you should be aware that there is plenty of available help when thinking about filing for bankruptcy. If you take a rational, methodical approach, you’ll soon be experiencing the fresh start you’ve been waiting for.
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