What Do You Need To Do To File Personal 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. Stop getting debt collector calls and figure out your finances by considering filing for personal bankruptcy. Continue reading for tips to help you get through bankruptcy.
Most people that file for bankruptcy owe a lot of money that they could not pay off. If this is the case for you, you should begin to investigate the legislation in your state. The laws governing bankruptcy vary from state to state. For example, the personal home is exempt from being touched in some states, but not in others. Be sure you educate yourself on local laws prior to filing.
Don’t use credit cards to pay your taxes if you’re going to file bankruptcy. The fact is that the credit card debt will be ineligible for discharge, and your tax debt may increase. In most cases, you can use the adage that “a dischargeable tax is a dischargeable debt.” Just because your credit card could be discharged in bankruptcy does not mean you should use it.
If you are going through a bankruptcy do not fall victim to guilt and pay off debts that you do not need to pay. Retirement accounts should never be touched if it can be helped. Although you may need to tap into your savings, you should not use up all of it right now and jeopardize the financial security of your future.
Always be honest with the information you give about your finances. Do not hide any income or assets or go on a spending spree before filing for bankruptcy: the court will find out and will not have a positive opinion of you.
You may still have trouble receiving any unsecured credit after a bankruptcy. Secured cards can be a great way to get started if this happens to you. Using a secured card not only helps to rebuild your credit, but it also keeps you from going more in debt with credit card bills. Once creditors see that you are making an effort to restore your credit, they may allow you to get an unsecured card in the future.
You should not have to pay for a consultation with a bankruptcy attorney. Make sure you ask lots 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. Choose to file only if your lawyer has convinced you that this is the best decision. You don’t need to decide what to do right away. If you’re unsure, don’t hesitate to talk to multiple bankruptcy lawyers.
Before pulling the trigger on bankruptcy, be sure that other solutions aren’t more appropriate for your case. For example, consumer credit counseling programs can help if your debt isn’t too large. Also, if you just contact your creditors and speak to them plainly and truthfully, the odds are good that you can negotiate a better payment structure that you can afford.
Filing for bankruptcy is a possibility, but you should consider other options first. Be aware that some debt consolidation companies could cause you even more debt. Remember to use the tips from this article, and make good financial choices to avoid future debt.