The Top Bankruptcy Tips You Cannot File Without
Posted at by PConran on category BankruptcyEmbarking on a personal bankruptcy filing can be quite complicated. Bankruptcies come in different types; what you choose is subject to your financial situation and the kind of debts that you have. Prior to filing, there is a lot you need to know. The following tips can help you get started.
Once a person’s debts outstrip his or her ability to repay them, bankruptcy may be the only option left. If this describes your situation, it makes sense to become familiar with relevant laws. Different states use different laws when it comes to bankruptcy. Some states protect your home, and others do not. Become acquainted with local bankruptcy laws before filing.
Do not use a credit card to manage your tax issues and then try to file bankruptcy. In some places the debt can not be discharged, and you may still need to pay the IRS afterward. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. So it does not help you to put the tax bill on your charge card if you know the debt will be discharged anyway.
Try going to a personally recommended bankruptcy lawyer instead of using a phone book or the Internet. Although you may find a good lawyer through an advertisement, you can simply find a much better lawyer if the lawyer is recommended to you by someone who has gone through the process and who has the inside track on the lawyer’s true capabilities.
Before you decide to file bankruptcy proceedings, determine which assets will be safe. The Bankruptcy Code contains a list of various assets that are excluded from bankruptcy. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. If you fail to go over this list, you may be unpleasantly surprised sometime down the road if any of your most valued items are seized.
If you’re filing for bankruptcy soon, be sure you are going to hire a lawyer. Filing for bankruptcy is a complicated procedure, and you may not be aware of all the ins and outs. Talk to a bankruptcy lawyer, they can help clarify anything that you might have confusion with.
Learn and gain a firm grasp of the differences in applying for Chapter 7 bankruptcies versus Chapter 13 bankruptcies. Take the time to learn about them extensively, and then figure out which one will be best for your particular situation. If the information you read is unclear to you, take the time to go over the specifics with your lawyer before making a decision on which type you will want to file.
Be sure that bankruptcy really is your best option. Maybe you can just consolidate debt to make it simpler to deal with. The whole process of filing for bankruptcy can be a long, and hard one. It will also make it tough for you to secure credit after your filing is complete. This is why you must make sure bankruptcy is your last resort.
You have probably realized that you should carefully evaluate your decision to file for bankruptcy before proceeding. If you feel that bankruptcy best suits your current financial position, then ensure you retain an experienced attorney who can help you.