Personal Bankruptcy: Use These Tips To Help You Get Through It
Posted at by PConran on category BankruptcyBankruptcy can be stressful and it can also bring relief. You do have to sort through all of your finances and interact with a lot of people in the financial part of your life. This may be very uncomfortable; however, after your bankruptcy case has been completed, you can start anew free from the hassles of bill collectors. You can make bankruptcy easier with the following tips.
Individuals often seek to file for personal bankruptcy protection if their debts exceed their ability to repay them. If this is the case for you, you should begin to investigate the legislation in your state. You will find that each state has their own bankruptcy laws. You may find your home is safeguarded in one state, while in another it isn’t. You should be familiar with the laws for your state before filing for bankruptcy.
It’s important that you understand what bankruptcy is and how it will change your life before you attempt to file a claim. The U.S. Department of Justice and American Bankruptcy Institute are two such places to look. The more information you have, the more confident you can be about any decision you make and you will know that you are doing the best thing possible for your situation.
Don’t use a credit card to pay off your taxes before filing for bankruptcy. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS. Keep in mind that if the tax debt is eligible to be discharged, then the credit card debt is also dischargeable. This means using a credit card is not necessary, when it will just be discharged.
When you feel certain that you must file for personal bankruptcy, refrain from squandering your life savings to pay off unsecured debt. You shouldn’t dip into your IRA or 401(k) unless there is nothing else you can do. Of course you will have to touch some of your savings to get through all of the hearings, but do not put out any money that you do not have to by law.
Ensure that you are providing genuine details when filing a bankruptcy petition, because honesty is the best policy when dealing with bankruptcy. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
Don’t feel bad if you need to remind your attorney about any specifics of your case. Never assume that they can remember all details without reminders. This is your bankruptcy case, so do not be afraid to remind your lawyer of any key facts.
Instead of getting your lawyer from the yellow pages or on the Internet, try your hardest to find one with a personal recommendation. Don’t be taken in by some fly-by-night company that exists only to profit from the suffering of others. Check out any lawyer you are considering thoroughly before engaging him or her.
Bankruptcy is a process that has both benefits and drawbacks. Regardless of your reasons for filing for personal bankruptcy, remember that it is a process that can be extremely helpful if you are well informed. These tips can make dealing with bankruptcy easier. Put them to use and see how smooth the process can be and how much happier you will feel!