Tips To Help You Survive Personal Bankruptcy
Posted at by PConran on category BankruptcyEmbarking on a personal bankruptcy filing can be quite complicated. There are a number of kinds of bankruptcy, and to determine the best kind, you must consider the state of your finances and the type of debt you have. It’s imperative that you learn everything you can about the process before you even think about filing. The below advice can assist you in beginning.
Do not use a credit card to manage your tax issues and then try to file bankruptcy. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS. Remember that if you can discharge the tax you can discharge the debt. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.
Ask yourself if filing for bankruptcy is the right thing to do. Look into credit counseling to see if it could help you work out of your debt without bankruptcy. Bankruptcy can leave your credit history permanently marked. Prior to doing this you need to be sure you try everything else first to get your credit history into shape and to lessen the impact.
It is essential that you are honest and forthright in the documentation you provide for your bankruptcy filings. Resisting the temptation to hide income or valuable assets from the bankruptcy trustee is a smart way to avoid potential complications, penalties, and the possibility of being barred from re-filing in the future.
Try to get a bankruptcy lawyer that your friends recommend, as opposed to someone that you find from the Internet or yellow pages. Don’t allow yourself to be taken advantage of by predatory lawyers just because you are filing for bankruptcy. It is important to find someone trustworthy.
Don’t pay to for an initial consultation with a bankruptcy attorney, and thoroughly question each candidate. Most lawyers offer free consultations, so talk to a few before making your decision. Don’t hire an attorney who fails to address all your concerns and questions. You don’t have to make your decision right after this consultation. You can take your time and check out several attorneys before making your final selection.
See if there is an alternative you can use before declaring bankruptcy. If your debt is relatively low, you may be able to manage it with credit counseling. It is sometimes possible to negotiate smaller payment by yourself. If you do this, make sure you save a written record of debt modifications that are negotiated.
A lot of bankruptcy attorneys will let you have a consultation, so try several out. Always ensure that the person you meet with is a real lawyer, not a legal assistant or paralegal. These people can’t give legal advice. Looking for an attorney will help you find a lawyer you feel good around.
Be sure your home is well protected. Just because you’re going bankrupt doesn’t mean that you also have to be homeless! You might be able to keep your home, for instance, if you have two mortgages or if your home has lost its value. There are also homestead exemptions which, depending on your other finances, may allow to remain in your home.
You have probably realized that you should carefully evaluate your decision to file for bankruptcy before proceeding. If it seems to make sense in light of your financial problems, you should seek an experienced bankruptcy attorney who can guide you toward a fresh, clean start!