Going Bankrupt? Solid Advice You Need Right Now
Posted at by PConran on category BankruptcyJust the thought of bankruptcy creeping up on you, can make you fearful to say the least. Similarly, mounting debt and the inability to sufficiently support oneself and family is another very real fear. If it frightens you, or you live this way, the information in this article will be useful for you.
When people owe more than what can pay, they have the option of filing for bankruptcy. If you are in this position, you need to be familiar with the laws in your area. Each state has its own set of rules regarding bankruptcy. For example, the personal home is exempt from being touched in some states, but not in others. Be sure you educate yourself on local laws prior to filing.
You should avoid paying your taxes with credit cards and then immediately file for bankruptcy. In most states, you will still owe money to the IRS and have to take care of the interest of your credit cards. One thing that you should remember is that if your tax is dischargable, your debt will also be dischargeable. Therefore, you have no reason for use of a credit card, if the amount is to be discharged in due process of the bankruptcy.
If you are feeling like you are seriously going to have to file for bankruptcy then do not clear out your savings. Don’t touch retirement accounts unless you don’t have a choice. If you have to use a portion of your savings, make sure that you save some to ensure that you are financially secure 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. Some companies just want to take advantage of you, so it is important that you have help from someone you trust.
If you are considering filing for bankruptcy you definitely need to hire an attorney. Filing for bankruptcy is a complicated procedure, and you may not be aware of all the ins and outs. A bankruptcy attorney can advise you on how proceed properly.
Before declaring bankruptcy, ensure that all other options have been considered. For example, consumer credit counseling programs can help you by renegotiating your debts with your creditors into payments that you can afford. You may have the ability to negotiate much lower payments, just be sure any debt modifications you agree to are written and that you have a copy.
It is wise to meet with several lawyers before making a final decision, take advantage of the free consultations to find one that is a good fit for you. Be certain that the person you meet with is really a lawyer. Avoid meeting with paralegals or legal assistants because they cannot give you legal advice. Look for an attorney until you find one you feel comfortable with.
Protect your house. Filing bankruptcy does not necessarily mean that you will lose your house. You might be able to keep your home, for instance, if you have two mortgages or if your home has lost its value. You could also check out the homestead exemption. This lets you continue living in your house, depending on whether you meet certain financial requirements.
Those who are afraid of bankruptcy are entirely justified; it often can be a frightening experience. If you understand all of the ins and outs of personal bankruptcy, you need not fear it. Use the personal bankruptcy information here as you work your way through your financial situation and make your life situation better for you and your family.