Bankruptcy: Tips To Get Through It Painlessly!
Posted at by PConran on category BankruptcyIf your car or other valuable items are about to be repossessed due to back taxes, you are probably quite afraid of what will happen. You can eliminate calls from debt collectors and get your finances back on track by filing for bankruptcy. Read on to see how to get through the process.
If you are thinking about paying off your tax obligations with a credit card and then filing bankruptcy, think again. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. Bear this in mind; if the tax can be discharged, then the debt can be as well. Therefore, you have no reason for use of a credit card, if the amount is to be discharged in due process of the bankruptcy.
Try to make certain you are making the right choice prior to filing your petition. Debt advisors are one of the many other avenues you can consider. Bankruptcy is a permanent part of your credit, so before you make such a big decision, you might want to explore all other choices so that your credit history is affected as minimally as possible.
Use a personally recommended bankruptcy attorney instead of one found through the Internet or phone books. 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.
You should never 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 it has been fewer than 90 days since you filed for bankruptcy, it is possible for you to get repossessed property back. Get help from your lawyer to file a petition so you can get your items back.
Bankruptcy is tricky and hiring a good lawyer will be a must. Having a lawyer on your side is the best way to avoid mistakes and bad decisions. A lawyer that specializes in bankruptcy can make sure you are following the correct procedures in your filing.
Speak to a bankruptcy attorney about what new laws may be going into effect before your bankruptcy filing. Bankruptcy laws are in constant flux, so just because you knew the law last year doesn’t mean that the laws will be the same this year. To find out about these changes, you can look at your state’s legislation website or contact their office.
Before you decide to declare bankruptcy, make sure that a less-drastic solution isn’t more appropriate. One example would be that a consumer credit program for counseling if you have small debts. You can also talk to creditors and ask them to lower payments, but be sure to get any debt agreements in writing.
Safeguard your most valuable asset–your home. Bankruptcy doesn’t always mean you’ll lose your home. You might be able to keep your home, contingent on certain factors, such as your home decreasing in value or having a second mortgage. If you meet certain criteria, you may be able to retain ownership of your home even after filing for bankruptcy.
Bankruptcy should be your last resort. Most debt consolidation companies aren’t legitimate and will make your debt worse. Keep the advice from this article in mind in order to make ideal financial decisions and stay away from debt.