As you probably know, the economy is in the toilet. The cycle of a tough economy leads to people losing jobs and going into debt. Deep debts usually wind up in bankruptcy. This is not a pleasant situation. The following article will help you, or your loved ones, gain control of your financial situation and hopefully prevent bankruptcy.
How You Can File Personal Bankruptcy
Don’t use a credit card to pay off your taxes before filing for bankruptcy. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. One thing that you should remember is that if your tax is dischargable, your debt will also be dischargeable. This makes using a credit care irrelevant, since bankruptcy will discharge it.
It is essential that you are honest and forthright in the documentation you provide for your bankruptcy filings. Not only is hiding income and assets wrong, it is also a crime.
What You Can Do Instead Of Filing For Bankruptcy Avoid exhausting your savings or emptying your retirement accounts to pay off creditors if you are considering filing for bankruptcy. You shouldn’t dip into your IRA or 401(k) unless there is nothing else you can do. You may need to use some of your savings; however, you should not use all of your savings. Remember that you must safeguard your future financial security.
Don’t pay for an attorney consultation and ask him or her anything you want to know. Nearly all attorneys offer free initial consultations, so you should be able to meet with a few before you make a final hiring decision. The lawyer who properly answers your questions is the one you should hire. You don’t have to make your decision right after this consultation. You can take as much time as you need to meet with different lawyers.
Remember to understand the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. The Chapter 7 variety can help you eliminate your debts almost entirely. Any ties that you have with creditors will be dissolved. If you file using chapter 13 bankruptcy, you will go through a sixty month repayment plan prior to all your debts being completely dissolved. Take the time to learn more about these different options so you can make the best decision possible.
Learn about teh differences between Chapter 13 and Chapter 7 bankruptcy. Investigate the benefits and pitfalls of both. Online resources may be able to provide all the information you need. If you don’t understand the information you researched, consult with your attorney about the details before you decide which type of bankruptcy you want to file.
Take advantage of the opportunity to consult with a number of bankruptcy lawyers who offer the first visit at no charge. 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 It will be important to work with a bankruptcy lawyer that you feel comfortable with; a little comparison shopping will help you find the right one.
In conclusion, you aren’t alone when it comes to filing for bankruptcy. However, thanks to the piece above, you are better prepared to face the challenges that may come your way. Use these tips to help make sure you get through the process of filing bankruptcy with a minimum of stress.
Too Many Bills? Too Little Money? Consider Personal Bankruptcy