Bankruptcy is an experience nobody ever expects to happen to them. People who declare bankruptcy usually have no other options left available. It is unfortunate to find yourself in this position, but this article is here to help get you started in the right direction.
Credit Card
Do not use a credit card to manage your tax issues and then try to file bankruptcy. Credit card debt is handled charge by charge during bankruptcy, and in most states, tax debt cannot be discharged through bankruptcy. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. There isn’t any reason to use a credit card to pay the tax bill since the bill can be discharged anyway.
If you know people who have filed for bankruptcy, ask them who they would recommend rather than relying on Internet reviews or worse, just randomly picking someone out of the phone book. Don’t be taken in by some fly-by-night company that exists only to profit from the suffering of others. Check out any lawyer you are considering thoroughly before engaging him or her.
If you are planning to file for bankruptcy, be sure to learn what types of assets you will be able to keep and which can be seized. The Bankruptcy Code lists the kinds of assets which are exempted when it comes to the bankruptcy process. Many belongings may become eligible for repossession or seizure after filing for bankruptcy. If you don’t read this list, there is a chance that you might get nasty surprises when they take your things away.
Do not abandon hope. Filing for bankruptcy may allow you to get back property, such as an auto, jewelry, or electronics, that you may have had repossessed. Any property repossessed within 90 days before filing bankruptcy, may be able to be returned to you. Talk to a lawyer for help with the petition filing process.
You should be able to meet with a specialized lawyer for free to ask your questions. Since most attorneys offer free consultations, meet with a few attorneys before deciding who to hire. Only make a decision after you have met with several attorneys and all of your concerns and questions have been addressed. Take your time choosing the right attorney to assist in your bankruptcy. You can take your time and check out several attorneys before making your final selection.
Check into less drastic solutions prior to declaring bankruptcy. One example would be that a consumer credit program for counseling if you have small debts. You may also find success in negotiating lower payment arrangements yourself, but be certain to get any arrangements with creditors in writing.
Many bankruptcy lawyers offer free consultations, so go to several before choosing one. Talk to the lawyer and not his assistant, who may not be legally able to help you. Considering several different lawyers can help find someone to trust.
If your earnings are higher than your expenses then filing for bankruptcy is a waste of time and money. Bankruptcy may seem to be the easy way out, but your credit report will show the scar for the next ten years.
Chapter 7
If you have a co-debtor, consider the ramifications that filing a Chapter 7 bankruptcy will have. Once you have filed Chapter 7, you, by law, are not responsible for any of your debts that also include your co-debtor. Although, your creditors may insist that the co-debtor pay off the entire debt.
If you are forced to file for bankruptcy, you should avoid being ashamed of yourself. It is possible for those going through the bankruptcy process to feel unworthy, guilty or ashamed. Feeling like this will not help your situation and can actually do serious damage to your mental well-being. Keeping a positive attitude during worrisome financial trouble is the smartest way to deal with a bankruptcy.
There is a great amount of emotional and mental stress associated with filing for bankruptcy. Look for a good attorney who can help you through the process. Don’t skimp when hiring a good lawyer. Hire the best attorney you can afford, not the one who charges the most. When deciding on an attorney get referrals, contact your better business bureau or get a free consultation from at least three attorneys. If you wish, you can attend a bankruptcy hearing and witness your attorney in action.
Bankruptcy should not be put off until the very last second. Some people think that by ignoring financial problems, they will just disappear. This kind of thinking could prove to be a mistake. If you have failed to make payments for several months but have continued making purchases on credit, your petition may be denied. As soon as you’ve decided that you no longer have a handle on your debts, consult a bankruptcy lawyer to see if bankruptcy is right for you.
It’s not going to be fun and it’s not going to be easy, but you can simply the process if you’re reading the right information. The process will be much simpler if you are well-informed. By starting with the information we have presented here, you should be able to begin to come to grips with your personal bankruptcy situation.
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