There are quite a number of people who have been affected by the economy, and now find themselves buried in debt. Their bills pile up higher while debt collectors and creditors keep their phones ringing constantly. Filing for bankruptcy might be the best option for you. The information in this article will help you to decide if this is an option for you.
If you are in a position where you are unable to pay your debts, bankruptcy may be the only option for you. When you are faced with this issue, begin to familiarize yourself with your state’s laws. Bankruptcy laws vary from state to state so it is important to do your research. Your home and other major assets may be protected in your state, while they are vulnerable in other states. It is best to become familiar with your state’s laws regarding bankruptcy before you take the steps to file.
Credit Cards
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. In many parts of the country, you cannot get this debt discharged, and in the end you will be left owing the IRS a big sum of money. Should the tax be dischargeable, the debt is often dischargeable as well. It is pointless to use credit cards if they can be discharged.
You should never pay for your first consultation with a bankruptcy attorney. Make the most of this free consultation by asking lots of questions. Most lawyers offer free consultations, so consult with a few before settling on one. Only make your decision if all your questions and concerns are adequately addressed. There is no need to feel rushed to decide to file after you talk with your bankruptcy lawyer. Take the time to meet with a number of attorneys.
If you are considering filing for bankruptcy you definitely need to hire an attorney. Personal bankruptcies are detailed and complex processes, and you may miss something that costs you money. When you engage the services of a bankruptcy lawyer, you can be assured of getting the help your need to proceed correctly.
Prior to declaring bankruptcy you really need to be sure that you’ve exhausted all your other options first. For example, if your debt is small, try a type of consumer counseling program. Also, if you just contact your creditors and speak to them plainly and truthfully, the odds are good that you can negotiate a better payment structure that you can afford.
Chapter 7
The two main kinds of bankruptcy are Chapter 7 and Chapter 13. Make sure you understand them so you know what is best for you. Chapter 7 is the best option to erase your debts for good. Your former ties with creditors will cease to exist. Filing Chapter 13 differs by requiring you to agree to a 60 month plan to repay your debts before they are totally eliminated. You must know about the different bankruptcy types, and how each can affect you.
Many bankruptcy lawyers offer free consultations, so go to several before choosing one. Make sure that you meet with an actual lawyer and not an assistant or paralegal, as these people are not allowed to provide legal advice. Searching for the best lawyer will help you located the comfort you need during this time.
Always protect your house. Bankruptcy filings do not necessarily mean that you have to lose your house. It is entirely possible that you will be able to keep your home. This is dependent upon the your home’s value and whether or not you have taken a second mortgage. Otherwise, try looking into house exemptions that may let you remain in the home if you meet certain financial threshold requirements.
As you now know, there is help out there for you if you want to file for bankruptcy. When you handle it correctly, a bankruptcy can resolve a great number of your financial troubles and enable you to start turning your life around.
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