Bankruptcy: Is It Right For You?
Posted at by PConran on category BankruptcyBankruptcy is a painful experience for anyone who must face it. Bankruptcy can mean bad things and it is usually an embarrassing thing to mention to people when they ask about your financial status. Take heart, whether you choose to file bankruptcy or not, there are options available to help you get through your financial difficulties.
If you are thinking about paying off your tax obligations with a credit card and then filing bankruptcy, think again. Most places will not consider the debt dischargeable, meaning you will have to pay the IRS a lot of money. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. So, in short, do not use your credit cards to pay off debts right before you file for bankruptcy.
Before you file for bankruptcy, carefully consider if it is the right option for you. There are other options available, such as credit counseling for consumers. Be sure to consider all options before filing for personal bankruptcy, as this will take a large toll on your credit score for the next ten years.
It should go without saying, but refrain from lying in your bankruptcy filings. Do not try to shield some assets or income from your creditors. This can get you in serious trouble and prevent your bankruptcy petition altogether.
You should never give up. There may still be way to get repossessed items back after you file for bankruptcy. You should be able to get your possessions back if they have been taken away from you within 90 days before you filed for bankruptcy. Consult with a lawyer who can help you along with filing the petition.
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 attorneys offer free initial consultations, and you should take advantage of the chance to interview multiple practitioners. Only choose an attorney once all your concerns are answered to your satisfaction. You don’t need to decide what to do right away. You can take your time and check out several attorneys before making your final selection.
If you’re filing for bankruptcy soon, be sure you are going to hire a lawyer. It is difficult to make all of the necessary decisions yourself, and expert guidance will be helpful. A personal bankruptcy lawyer will be able to help you and ensure you are doing things the proper way.
Learn about teh differences between Chapter 13 and Chapter 7 bankruptcy. Get a good grasp of the pluses and minuses each type of filing involves by researching both of them extensively. If something doesn’t make sense to you, go over it with your lawyer prior to choosing which one to file.
Consider filing for Chapter 13 bankruptcy. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. This lets you keep any real estate and personal property while you repay all your debts through a consolidation program. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. However, if you miss even one payment, the court will dismiss your entire case.
As you can see, you do not have to resort to bankruptcy. The tips here can help provide you with some guidance to avoid filing bankruptcy. Learn to live within your means and bankruptcy may be avoided.