The Right Way For You To Declare Bankruptcy
Posted at by PConran on category BankruptcyThere are quite a number of people who have been affected by the economy, and now find themselves buried in debt. Creditors and bill collectors hound them and there is no slow down in their bills. If you are having financial difficulty, it is a good idea to research all your options, including bankruptcy. This article will help you to decide if filing for bankruptcy is the right option for you.
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. You will find few states that discharge this kind of debt. You may also wind up owing a lot of money to the IRS. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. So as you can see, in this situation there is no need to use the card when the debt will be discharged when you file for bankruptcy.
Make sure you are always providing honest documentation whenever you have to file for personal bankruptcy. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
After a bankruptcy, you may still see problems getting any kind of unsecured credit. If you find yourself in this situation, you may want to think about getting a secured card or two. Having a credit card of any type will allow creditors to realize that you’re attempting to work in the right direction to repair your credit. If you pay your secured card off on time, you’ll eventually find that companies will start offering you unsecured credit.
Do not attempt to conceal any assets when filing for bankruptcy because you may be penalized when they are discovered. All of your financial information, be it positive or negative, must be disclosed to those in charge of filing your case. They need to know it all. Keeping secrets or trying to outsmart everyone is not a wise move.
Don’t ever pay a bankruptcy attorney for a consultation, and ask a lot of questions. Free consultations are standard practice among bankruptcy lawyers, so interview multiple candidates before making a final decision. Do not make any final decisions until every question you have has been answered. It’s isn’t necessary to make a choice right away. Consulting with several attorneys will also help you find someone you trust.
Stay up to date with any new bankruptcy filing laws. Bankruptcy law evolves constantly, and it’s important to stay up-to-date to ensure that you file properly. To learn about any changes, search the Internet or contact your state’s legislative office.
Since the majority of attorneys are willing to provide no-cost initial consultations, it is smart to meet with more than one before you make a selection. Ensure that you have a meeting with a real lawyer instead of an assistant, since they can provide the best advice. By shopping lawyers, you will be more likely to find one that makes you comfortable about the process.
Clearly, it is possible for those thinking of filing for bankruptcy to get a great deal of assistance. If you approach this with a clear mind and in the right way, it can give you the debt relief that you have longed for and will enable you to get back on your feet.