Bankruptcy Is No Longer A Bad Word! Tips To Help You Along!
Posted at by PConran on category BankruptcyThere are many valid reasons for filing bankruptcy. Illness, extended unemployment and other financial hardships can result in a devastating financial situation. If this situation proves to be yours, you can help yourself with the contents of this article.
It is simple math; when you owe more than you are able to pay off, a bankruptcy is the likely solution. If this sounds like you, start familiarizing yourself with your state laws. Laws differ from one state to the other. In a few states, they see to it that your house is protected. This is not the case when it comes to other states. Do you research about legal ins and outs in your state before you begin the bankruptcy process.
If you are thinking about paying off your tax obligations with a credit card and then filing bankruptcy, think again. Most of the time, you cannot discharge this debt. As a result, you will owe the IRS a lot of money. If the tax can be discharged, so can the debt. Just because your credit card could be discharged in bankruptcy does not mean you should use it.
Be certain you are making the right choice before you file for bankruptcy. You can also avail yourself of other options, such as consumer credit counseling. Bankruptcy permanently affects your credit, so avoid filing until you have exhausted all of your other options.
One of the most important things to remember when filing for bankruptcy is to be honest and truthful every step of the way. It is vital that you disclose all information about your assets and income so there are no delays or penalties, such as a court barring you from filing again later in the future.
Try to get a bankruptcy lawyer that your friends recommend, as opposed to someone that you find from the Internet or yellow pages. There are a number of companies who may take advantage of your situation, so always work with someone that is trustworthy.
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. Don’t choose a lawyer until your questions about bankruptcy are sufficiently answered. After the consultation, you are not immediately required to come up with a decision. If you’re unsure, don’t hesitate to talk to multiple bankruptcy lawyers.
Stay up to date with any new bankruptcy filing laws. These kinds of laws are constantly changing and it is important that you are aware of these changes, so that you can learn how to properly file for bankruptcy. To stay up-to-date on these laws, check out your state’s government website.
Prior to choosing a bankruptcy attorney, seek a free consultation with at least three attorneys. It is important to meet with the actual attorney, not the attorney’s assistant or paralegal; those people are not permitted to give legal advice Interviewing multiple attorneys is a good way to find the best fit.
Learn about teh differences between Chapter 13 and Chapter 7 bankruptcy. Get a good grasp of the pluses and minuses each type of filing involves by researching both of them extensively. If something doesn’t make sense to you, go over it with your lawyer prior to choosing which one to file.
Bankruptcy should be considered only as a last option. Do not let this situation cause too much stress for you. This article shares what you need to know about fixing your financial predicament.