Are You Filing For Personal Bankruptcy? Try These Tips!
Posted at by PConran on category BankruptcyThe economy has been in a poor state for several years now. When the economy is bad, people lose their jobs and that means debt begins to pile up. Debts usually end in bankruptcy which isn’t good. If you would like to know how to get yourself or your friend out of filing for bankruptcy, read on for some possible answers.
You should check with the personal bankruptcy resources available online to educate yourself thoroughly before you begin the process. The United States Department of Justice and American Bankruptcy Institute are two such places to look. The more knowledge you have, the more you are able to make right decisions and find a new future.
Think twice if you have struck upon the idea of paying off your taxes by credit card and subsequently filing for personal bankruptcy. The fact is that the credit card debt will be ineligible for discharge, and your tax debt may increase. The rule here is that if you can get the tax discharged then you can get the debt discharged. So it does not help you to put the tax bill on your charge card if you know the debt will be discharged anyway.
Look for a bankruptcy lawyer that comes from a personal recommendation instead of someone random on the Internet or in the yellow pages. You want your bankruptcy to go smoothly, and the Internet is rife with fly-by-night companies whose only goal is to prey upon the financially desperate.
If you are planning to file for bankruptcy, be sure to learn what types of assets you will be able to keep and which can be seized. The federal statutes covering bankruptcy can tell you exactly which assets are exempt from forfeiture to pay off creditors. It is crucial to read the list before you file for bankruptcy so you know whether your favorite items will be taken. It is important to know what types of possessions may be taken away before they actually are seized.
Avoid paying for a consultation with the bankruptcy attorney, but do ask many 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. Therefore consult with different lawyers and get a feel for them, then decide which one suits your needs After the consultation, you are not immediately required to come up with a decision. So, this gives you plenty of time to consult with several attorneys.
Check into less drastic solutions prior to declaring bankruptcy. For instance, a consumer credit counseling program may be a better bet if your debts are relatively small. 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.
Many bankruptcy attorneys offer the first consultation with no charge, so consult with several before deciding on one. By law, paralegals and assistants can not give legal advice, so be sure that you are meeting with an actual attorney. By meeting with several attorneys through a free consultation you will be able to choose which attorney you feel more comfortable with.
While some new jobs are beginning to pop up, many people are struggling to find decent income; in fact, many people searching for any job. Even when your financial situation is not producing enough income, there are some things one can do in order to avoid bankruptcy. Hopefully, the information in this article has provided you with useful information that can help you stay out of bankruptcy. May good fortune be with you.