Strong Advice For Handling Your Bankruptcy Concerns
Posted at by PConran on category BankruptcyBankruptcy is a decision that should be considered carefully before undertaking. Go over the advice in the following paragraphs to get an idea of what you’re in for, and to learn what you should know before you decide whether or not to file. Take the time to educate yourself before you make your choice.
You should avoid paying your taxes with credit cards and then immediately file for bankruptcy. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. Keep in mind that if the tax debt is eligible to be discharged, then the credit card debt is also dischargeable. There isn’t any reason to use a credit card to pay the tax bill since the bill can be discharged anyway.
If you are faced with the choice of filing for bankruptcy or using your emergency fund or retirement accounts to pay creditors, opt to file for bankruptcy. Retirement funds should be avoided at all costs. Your savings accounts offer valuable financial security so try to leave them intact.
It can be difficult to obtain unsecured credit once you have filed for bankruptcy. This being the case, look at secured card options. They offer you the chance to demonstrate the seriousness with which you now take your financial obligations. In time, it may be possible for you to obtain unsecured cards.
Instead of getting your lawyer from the yellow pages or on the Internet, try your hardest to find one with a personal recommendation. There are way too many people ready to take advantage of financially-strapped individuals, so you must ascertain that your attorney can be trusted.
Before you file for bankruptcy, find out which of your assets will be exempt from seizure. The federal statutes covering bankruptcy can tell you exactly which assets are exempt from forfeiture to pay off creditors. You can determine exactly which of your possessions are at risk by consulting this list before you file. If you don’t read it, you could have nasty surprises pop up later due to your prized possessions being seized.
Avoid paying for a consultation with the bankruptcy attorney, but do ask many questions. You can meet with a few lawyers before deciding on one. Most lawyers provide a free initial consultation. Decide which lawyer you like best buy reviewing all of the lawyers’ answers to your questions. Choose the lawyer who addressed your issues the best. You need not decide right away. If you’re unsure, don’t hesitate to talk to multiple bankruptcy lawyers.
Take the time to find a simpler solution to your financial issues, before filing for bankruptcy. For instance, a consumer credit counseling program may be a better bet if your debts are relatively small. You should also try negotiating a payment plan with your creditors; make sure you get a written agreement of the new payment plans.
Safeguard your home. Filing for bankruptcy will not always result in losing your home. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. You are still going to want to check into homestead exemption either way just in case.
Bankruptcy is not a something that simply happens, as this article has proven to you. There is a long list of items you need to do, and make sure they are done correctly. By using the above suggestions, you will be sure that all your Ts are crossed and all your Is are dotted when it comes to filing for bankruptcy.