Is Personal Bankruptcy The Right Choice For Me?
Posted at by PConran on category BankruptcyThe mere thought of bankruptcy is enough to strike fear into the hearts of people. The thought of losing their homes and cars and being overcome by debt is something they rightfully fear. If you are in a situation that may require a bankruptcy filing, don’t let fear overcome you. Read this article and learn valuable tips and advice to make this scary situation much more manageable.
A lot of people find themselves needing to file bankruptcy when they are unable to pay their bills. When you are faced with this issue, begin to familiarize yourself with your state’s laws. Bankruptcy laws vary from state to state. Some states protect your home, and others do not. Make sure you know the laws where you live before you file.
Don’t use a credit card to pay off your taxes before filing for bankruptcy. In most states, this debt won’t be discharged, and you could end up owing the IRS a whole lot more. Remember that if you can discharge the tax you can discharge the debt. This means using a credit card is not necessary, when it will just be discharged.
Be sure to bring anything up repeatedly if you are unsure if your lawyer is focusing on it. Don’t just assume that the attorney will remember it automatically. Speak up if something is troubling you, as this is your future we are talking about here.
Be certain that you can differentiate between Chapter 7 and Chapter 13 bankruptcy. In Chapter 7 most of your outstanding accounts will essentially be erased. The ties with the creditor will be broken. If you choose to file for Chapter 12 bankruptcy, you’ll be put into a 60-month plan for repaying your debts before they’re eliminated. It is worth while to take your time to research both types of bankruptcy to decide which option works best for you, and your financial situation.
Since it is possible to obtain a free consultation from the majority of bankruptcy lawyers, meet with a few of them prior to choosing one. Never settle for speaking with a paralegal or an assistant. They are not trained, nor allowed, to pass on legal advice. Shopping around for a lawyer can help you find someone with whom you feel comfortable.
Once your bankruptcy filing is under way, take the time to decompress a little. Many debtors stress-out during the time of filing. Depression can ensue from the stress if action isn’t taken. After you have finished filing for personal bankruptcy, your life will improve.
It is important to understand your rights when you file for bankruptcy. There are unscrupulous debt collectors who may suggest that your obligations cannot be included in a bankruptcy. There are only three main classes of debts that are non-dischargable: taxes, child support and student loans. If a collector tries to convince you that some other type of debt, such as a credit card, is non-discharagable, get the company’s information and send a report to your state attorney general’s office.
Going through bankruptcy is tough and can be mentally and emotionally draining. Working with a good bankruptcy lawyer can help make the process a lot smoother and less stressful for you. Don’t think that the highest priced attorney is the best. You don’t have to use the most expensive attorney; you just need a good quality attorney. Get referrals from those who have used a bankruptcy lawyer, talk to the bureau for better business, and take advantage of free consultations offered by most lawyers. Try attending a hearing to find out how bankruptcy attorneys handle the situation.
It is not unusual for people to be worried about bankruptcy; the process is nerve-wracking. That said, the best antidote to fear is information, and this article has given you that in spades. Using the personal bankruptcy advice in this article can help improve your financial situation.