Bankruptcy will always be a stressful event in a person’s life. Those who find the need to file often worry about how they will be able to pay debts and live their daily life. As you can see, filing for bankruptcy does not mean life is over.
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. Most states do not look at this debt as chargeable, and you could end up owing money to the IRS. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. So it does not help you to put the tax bill on your charge card if you know the debt will be discharged anyway.
Don’t be afraid to remind your attorney of certain details in your case. Chances are that you may have forgotten to tell them about certain specifics that may be important to your filing. It is in your best interest to speak out. You are in control of the outcome of your bankruptcy.
Stay abreast of new laws that may affect your bankruptcy if you decide to file. This area of law is in constant flux and it is imperative that you know where the law stands at the time you file for your bankruptcy. To stay up-to-date on these laws, check out your state’s government website.
Before picking a bankruptcy lawyer, speak with more than one, since most offer a consultation for free. It is important to meet with the actual attorney, not the attorney’s assistant or paralegal; those people are not permitted to give legal advice Look for a lawyer who you can relate to.
Look into all of your options before you choose to file for bankruptcy. For example, you can always talk with a lawyer to see about different options through creditors or other means that will not require wiping the entire slate clean. You can apply for a modification of your mortgage if your home is going into foreclosure. Your lender can adjust your loan in many ways including extending the time you have to pay, reducing your interest rate, or canceling some of your late fees. When all is said and done the creditors just want their money, and more often than not will work with you on a repayment plan.
Remember that filing for Chapter 7 personal bankruptcy will not just affect you. Think about the effect it will have on business associates, friends and family or anyone else who may be a co-signer with you. When filing Chapter 7, you are not longer liable for the debts that you and a co-debtor signed for. Although, your creditors may insist that the co-debtor pay off the entire debt.
Bankruptcy is a hard thing to experience and it could create both emotional and mental stress. Make sure that you hire an experience lawyer to get your bankruptcy done properly. Don’t let cost be the sole factor in who you hire. Quality is far more important than expense when it comes to a good bankruptcy attorney. Talk to friends who have been through a similar situation and ask them for referrals. If you really want to check up on them check out how well they do at court hearings.
If you are going to file for bankruptcy make sure you are prompt. Some people just ignore the trouble they are in financially and think it will go away later. This is not a good decision. It doesn’t take long for debt to become unmanageable, and not taking care of it could eventually lead to wage garnishment or foreclosure. The minute you realize that your debts are too big to take care of, contact a bankruptcy attorney to discuss your options.
Do your homework so you thoroughly understand the laws pertaining to bankruptcy before you file. Here is one example, an individual who files for bankruptcy cannot transfer any assets for a year before the filing date. Also, a person cannot legally increase their debt amount on credit cards prior to filing.
Do not take a large cash advance from credit cards prior to filing, knowing that bankruptcy erases all debts. To do this would be considered fraud. Even after filing for bankruptcy, you might be forced to repay money gained in this manner.
With any luck, this piece has shown you that financial roadblocks are not necessarily the end of the world. It may be hard in the beginning; however, you can get past bankruptcy. Using these tips will allow you to get through this process with ease.
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