Sadly, bankruptcy is an increasingly widespread phenomenon of late. Sustained unemployment has led many people to file bankruptcy recently. However, before selecting this option make sure you know everything you need to know before you head too far down the path. This article can help you with that.
Before making the decision to file for bankruptcy, be sure to do some research and learn all you can about the subject. There are many websites available that offer this information. The United States Check out the Bankruptcy Institute site and do some research about consumer’s rights. The more information you have, the more confident you can be about any decision you make and you will know that you are doing the best thing possible for your situation.
Do not even think about paying your taxes with credit and petitioning for bankruptcy right after. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS. Generally speaking, debt incurred to pay taxes and the tax bills themselves are treated the same in a bankruptcy. This makes using a credit care irrelevant, since bankruptcy will discharge it.
Ensure that you are providing genuine details when filing a bankruptcy petition, because honesty is the best policy when dealing with bankruptcy. 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.
Secured Card
You might find it difficult to obtain an unsecured credit card or line after emerging from bankruptcy. If this happens, instead you should turn your attention to secured credit cards. Using a secured card not only helps to rebuild your credit, but it also keeps you from going more in debt with credit card bills. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
Try to find a bankruptcy attorney who is personally recommended, rather than off the Internet, or out of the yellow pages. Bankruptcy attracts a lot of fly-by-night firms that take advantage of desperate people, and a word-of-mouth recommendation makes it more likely that your bankruptcy will go smoothly.
You should be able to meet with a specialized lawyer for free to ask your questions. Most lawyers provide a consultation for free, so consult with many of them before picking which one you want to hire. Choose to file only if your lawyer has convinced you that this is the best decision. It’s isn’t necessary to make a choice right away. You have lots of time for consulting with other lawyers.
Be aware of recent changes, if any, in the bankruptcy code. Bankruptcy law has changed substantially in recent years, and therefore you must understand how such changes may affect your situation. To learn about the changes, you should check out the website of your state’s legislation or you can call their office.
Safeguard your home. Bankruptcy doesn’t always mean you’ll lose your home. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. Additionally, some states have homestead exemptions that might let you keep your home, provided you meet certain requirements.
Become knowledgeable in regards to details about chapter seven bankruptcy vs. chapter 13 bankruptcy. Weigh all the information you can find on- and off-line to make an educated decision. Ask your bankruptcy lawyer to clarify anything you don’t understand before making a final decision about which type of bankruptcy to file.
As said previously, bankruptcy is a popular topic due to the declining economy. If you want to know that you are doing the right thing when dealing with your bankruptcy be sure to put the information you read in this article to use.
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