Great Advice For Anyone Looking To File For Bankruptcy
Posted at by PConran on category BankruptcyWhen you’re indebted to people or institutions, it’s only a matter of time before they show up at your door to collect. Sometimes literally. If you want to put an end to the annoying calls, the threatening letters, and other intimidation tactics, filing bankruptcy may be your only out. This article will provide you with information to help you through this rough time.
Most people end up filing for personal bankruptcy because they owe more than they make. If this sounds like you, start familiarizing yourself with your state laws. Bankruptcy rules vary by jurisdiction. For instance, some states protect you from losing your home in a bankruptcy, but others do not. See to it that you understand the bankruptcy laws in the area that you live prior to filing.
If you are thinking about paying off your tax obligations with a credit card and then filing bankruptcy, think again. In a lot of places, the debt cannot be discharged, and you may still owe money to the IRS. In most cases, you can use the adage that “a dischargeable tax is a dischargeable debt.” This means using a credit card is not necessary, when it will just be discharged.
As bankruptcy appears on the horizon, don’t take your savings or retirement accounts to try to pay off all your bills. You should make every effort to leave your retirement accounts untouched until your retire. If you do have to dig into your savings, make sure that you leave enough to sustain you and your family for a couple of months.
You should never give up. If you’ve had collateral, such as a car, electronics, or jewelry repossessed for non-payment, you might be able to recover the property when you file for bankruptcy. If you have any property in repossession that was taken less than three months before filing for bankruptcy, then there are good odds that you can get your property back. Discuss your options with a good lawyer who can help you with the filing of your bankruptcy petition.
Do some research about laws and legislation before 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. Check the website of your state’s legislation or get in contact with your local office to learn more about these important changes.
Take advantage of the opportunity to consult with a number of bankruptcy lawyers who offer the first visit at no charge. Be certain you talk to the lawyer, himself, instead of a paralegal or assistant; those people aren’t allowed to give legal advice. Taking the time to compare lawyers will ensure that you get a person that you can be yourself around.
Before filing a bankruptcy claim, make sure that your home is well protected. Bankruptcy doesn’t always mean you’ll lose your home. For instance, if your home value has dropped recently, or even if you happen to hold a second mortgage, you may not necessarily lose the home. If this is not the case, find out more about Homestead Exemptions you might qualify for if you meet certain financial requirements.
Bankruptcy is an option, but you should look at other options before filing. Keep in mind that services that promise debt consolidation are usually scams that make your financial problems worse. Use the tips you learned from this article to improve your financial situation and stay away from debt.