Before they find themselves in a position of needing to file for personal bankruptcy, many people believe the only losers would do so. A change in circumstances, such as divorce or job loss, can make a situation where filing for personal bankruptcy is a necessity. If you find yourself in this situation, take some comfort from the help in his article.
Personal Bankruptcy
Once a person’s debts outstrip his or her ability to repay them, bankruptcy may be the only option left. If this sounds familiar, you should read up on the bankruptcy laws in your state. Each state has its own laws regarding personal bankruptcy. Your home and other major assets may be protected in your state, while they are vulnerable in other states. Before filing for personal bankruptcy, be certain that you are familiar with the laws.
Visit web sites and read information to learn as much as possible about the topic of personal bankruptcy. The United States Department of Justice, the American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys, all provide valuable information. Knowing is half the battle, after all, and these websites are the first step in learning what you need to know to make your bankruptcy smooth and stress-free.
Think twice if you have struck upon the idea of paying off your taxes by credit card and subsequently filing for personal bankruptcy. The fact is that the credit card debt will be ineligible for discharge, and your tax debt may increase. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. If you live in an area where tax can be discharged through bankruptcy, financing your tax bill is pretty pointless.
Try to find a bankruptcy attorney who is personally recommended, rather than off the Internet, or out of the yellow pages. There are way too many people ready to take advantage of financially-strapped individuals, so you must ascertain that your attorney can be trusted.
Before you file for bankruptcy, find out which of your assets will be exempt from seizure. The Bankruptcy Code lists the kinds of assets which are exempted when it comes to the bankruptcy process. It is important to be aware of this list so you will know what assets are saved. It is important to know what types of possessions may be taken away before they actually are seized.
No good will come of trying to conceal your assets or your liabilities in the bankruptcy process; you want to be scrupulously honest when you declare bankruptcy. Whoever provides your legal consultation must be privy to all of your financial information. Don’t withhold information, and create a smart way of coping with the reality of the situation.
State Legislature
Before you file for personal bankruptcy, be sure that you are cognizant of all current laws. It can be tough to keep up with them on your own, and because they change often, a bankruptcy attorney can help you keep track for the sake of your filing process. Review the state legislature web site or contact the state legislature office to keep abreast of changes in the law.
Prior to declaring bankruptcy you really need to be sure that you’ve exhausted all your other options first. For example, consumer credit counseling programs can help if your debt isn’t too large. Negotiating with creditors is another option, but creditors are notorious for “forgetting” these agreements, so get them in writing!
Make sure that you understand the difference between Chapter 13 bankruptcy and Chapter 7 bankruptcy. Chapter 7, for example, will wipe away every one of your outstanding debts. Your former ties with creditors will cease to exist. But, with Chapter 13, you will be in repayment plan for about 5 years prior to any debts you have being totally dissolved. It’s imperative that you know the differences among the various categories of bankruptcy so that you are able to choose the wisest one for you.
Most bankruptcy lawyers offer a free consultation, so meet with several before you decide on one. Never settle for speaking with a paralegal or an assistant. They are not trained, nor allowed, to pass on legal advice. Shopping around for a lawyer can help you find someone with whom you feel comfortable.
It is important to know how Chapter 7 filings differ from Chapter 13 filings. Take the time to find out about each one online, and look at the advantages and disadvantages of each. 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.
Before filing for bankruptcy ensure that the need is there. Consolidation could be the avenue you need to get your finances back in order. Bankruptcy is a stressful process. It will also limit your ability to get credit for the next few years. Therefore, you need to be sure that you really have no other option than to file for bankruptcy.
Once you have tried every approach to your finances and still find no solution, you may find it necessary to consider bankruptcy. If life has brought you here, there is no reason to stress yourself out. This article will provide valuable information for you.
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