The decision to file for bankruptcy is very serious and should not be taken lightly. Go over the advice in the following paragraphs to get an idea of what you’re in for, and to learn what you should know before you decide whether or not to file. Then, you can make a decision based on what you learn.
It is simple math; when you owe more than you are able to pay off, a bankruptcy is the likely solution. If this is your case, you should do some research about bankruptcy laws in your state. Each state has its own laws regarding personal bankruptcy. For instance, in some states, you can’t lose your home to bankruptcy, while in other states, you can. Be sure you educate yourself on local laws prior to filing.
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Knowledge is power when you’re considering bankrupcy; there are many websites available to help you. The United States There is solid advice available from the NACBA, (Consumer Bankruptcy Attorneys’ association) the ABI, (American Bankruptcy Institute) and the United States Department of Justice. 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 try to get clever by paying your taxes via credit card before you declare bankruptcy in an effort to dodge your tax burden. In many areas of the country, this debt will not be dischargeable, and you could be left owing a significant amount to the IRS. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. So, there is no reason to use your credit card if it will be discharged in the bankruptcy.
You must be entirely candid when it comes to declaring assets and obligations in your bankruptcy petition. When you file make sure whoever is handling the process is fully aware of each and every financial detail. Keeping secrets or trying to outsmart everyone is not a wise move.
Don’t give up. If you file for bankruptcy, you might be able to reclaim certain property that has been repossessed, such as your car, electronics or jewelry. If your property has been repossessed less than 90 days prior to your bankruptcy filing, there is a good chance you can get it back. Talk to a lawyer for help with the petition filing process.
You should not have to pay for an initial legal consultation, and such meetings are great opportunities to ask lots of questions. Most lawyers offer free consultations, so talk to a few before making your decision. The lawyer who properly answers your questions is the one you should hire. It is not necessary to come to a decision immediately following the meeting. Take your time, and schedule consultations with more than one lawyer.
Bankruptcy is tricky and hiring a good lawyer will be a must. The topic of bankruptcy is a complicated one and it is important that you know all about it. A qualified bankruptcy attorney will guide you through the steps and help you do everything properly.
Learn how Chapter 7 bankruptcy and Chapter 13 bankruptcy differ from each other. Investigate the benefits and pitfalls of both. Online resources may be able to provide all the information you need. If the information you read is unclear to you, take the time to go over the specifics with your lawyer before making a decision on which type you will want to file.
As you are aware from the previous paragraphs, bankruptcy is not something that just happens. There are quite a few things you you need to do and do correctly. Take advantage of the advice in this article, and make sure everything you have is in order. With bankruptcy, you can’t be too careful.
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