Filing For Bankruptcy: What You Need To Know
Posted at by PConran on category BankruptcyMention of the word, “bankruptcy” is enough to terrify many. Increasing debt, along with being unable to support a family can be an actual nightmare for some. If these circumstances sound familiar, you stand to benefit from the tips that follow.
Visit web sites and read information to learn as much as possible about the topic of personal bankruptcy. The United States Department of Justice and American Bankruptcy Institute are both sites that provide free advice. By being well armed with the correct knowledge, you can be certain of the decision that you have made. Additionally, you will understand the processes necessary to conduct your personal bankruptcy matters in a smooth manner.
Don’t use credit cards to pay your taxes if you’re going 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. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. This means using a credit card is not necessary, when it will just be discharged.
When bankruptcy seem inevitable it is important not to use your retirement funds or emergency savings to pay creditors. Unless there are no other options, your retirement funds should never be touched. While dipping into your savings is likely to be necessary, avoid wiping it out completely to prevent leaving yourself with little financial security in the future.
You may still have trouble receiving any unsecured credit after a bankruptcy. Since it is important that you work to rebuild your credit, you should instead think about applying for a secured card. This will prove that you want to improve your credit score. After some time passes they may be willing to offer you unsecured credit.
Determine which assets won’t be seized before filing for bankruptcy. Certain assets, as listed in the local bankruptcy regulations, are immune from seizure during bankruptcy. Be sure that you study this list. Make yourself aware of any assets you have that could be seized. If you neglect this important step, you might be blindsided when a possession that is important to you is taken to repay creditors.
Never pay to have a consultation with a lawyer, and ask a lot of questions. Nearly all attorneys offer free initial consultations, so you should be able to meet with a few before you make a final hiring decision. Make a decision when all your concerns and questions have been addressed well by one lawyer in particular. It is not necessary to decide immediately after your consultation. This offers you the opportunity to speak with other attorneys.
A lot of bankruptcy attorneys will let you have a consultation, so try several out. Be certain that the person you meet with is really a lawyer. Avoid meeting with paralegals or legal assistants because they cannot give you legal advice. Be sure to check out a number of lawyers so that you will find one who is just right for you.
Consider Chapter 13 bankruptcy. With a consistent income source and less than $250k in debt, try filing for Chapter 13. This lets you keep any real estate and personal property while you repay all your debts through a consolidation program. The plan is usually for a term of three to five years, and a discharge will be granted at the end of that term. Keep in mind that even missing one payment can be enough for your whole case to get dismissed.
Anyone fearing bankruptcy has a legitimate fear; filing a claim can be scary. Don’t let your fear take over. You now have the knowledge necessary to overcome the fear. The advice in this article will make the idea of filing for bankruptcy a little easier for both you and your family.