Signs It Might Be Time To File For Personal Bankruptcy
Posted at by PConran on category BankruptcyThese days, the process of bankruptcy is an all to common occurrence. Thank you, economy! Before you begin to file bankruptcy, it’s imperative that you know how it works so you can make wise decisions. The following article will get you up to speed on all things concerning bankruptcy.
Generally bankruptcy is filed when a person is facing insurmountable debt. If this sounds like you, start familiarizing yourself with your state laws. Most states differ in their laws governing bankruptcy. Your home is safe in some states, but in others it’s not. Know what the laws are in your state before filing.
Be certain you understand all you can about bankruptcy by researching reputable sites that offer good information. The U.S. Department of Justice, the American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys, all provide valuable information. You will find that the process of filing for personal bankruptcy is easier and less of a hassle with the more information on the subject you gather ahead of time.
Do not use a credit card to manage your tax issues and then try to file bankruptcy. In most states, this is not dischargeable debt. Therefore, you will end up owing the IRS a lot of money. One thing that you should remember is that if your tax is dischargable, your debt will also be dischargeable. So, there’s no reason to make use of a credit cards if it will not be discharged in bankruptcy.
If filing bankruptcy is in your future, don’t waste any savings you may have attempting to pay off your debts. Retirement funds should be avoided at all costs. You may need to tap your savings, but don’t empty your savings account, as this could leave you in a difficult situation down the road.
One of the most important things to remember when filing for bankruptcy is to be honest and truthful every step of the way. To avoid problems, penalties and future re-filing bans, resist the urge to hide documentation or assets.
Don’t hesitate to give your attorney a heads-up about something she has missed. Lawyers are people too, and sometimes they forget important information and need to be reminded. It’s your financial future that is in his hands; don’t hesitate to speak up.
If you’re unsure, then you need to learn what a Chapter 7 bankruptcy can do for you, as opposed to what Chapter 13 does. Be sure you go on the Internet and do your research to see what’s best for you. Once you have done your own research, be sure to review your findings with your lawyer, who is the expert. This way, you can be sure of making a well informed choice.
Before filing for bankruptcy ensure that the need is there. It may be that all you really need to do is consolidate some of your debts. The bankruptcy process takes forever to finish and is very nerve-wracking. The future of your credit will be greatly affected. Before you decide to file for bankruptcy you want to be absolutely certain that it is the only way to resolve your problems.
Spend time with loved ones. Going through a bankruptcy is never easy. At the end of the process, many people are left with feelings of shame and worthlessness. A lot of folks decide to hide themselves from the world around them until the end of the process. This isn’t true though because when you isolate yourself you will just start to feel worse and may become depressed. Because of this, it’s vital you keep spending some time with the people you love despite what you are currently going through.
As you read at the start of this article, bankruptcy has become a very common process now due to the economy. By following the advice presented here, you can make sound decisions in regards to your relationship with personal bankruptcy.