Is Personal Bankruptcy The Right Choice For Me?
Posted at by PConran on category BankruptcyFiling for bankruptcy is still an option for anyone who has had possessions repossessed by the IRS. Although bankruptcy tends to destroy a person’s credit, it’s occasionally the only available option. Check out the following tips to see what filing for bankruptcy entails and what can happen if you do.
One of the best ways to learn more about the bankruptcy process is to hit the Internet and look up reputable bankruptcy websites. The United States Department of Justice and National Association for Consumer Bankruptcy Attorneys provide excellent information. 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 look at bankruptcy as a first step. Look at all the other options you may have first. You can also avail yourself of other options, such as consumer credit counseling. Since your credit history will forever note the bankruptcy, you want to make sure that you have tried everything else before you take an action such as this, in order to minimize the effect it will have with regard to your credit history.
It is essential that you are honest and forthright in the documentation you provide for your bankruptcy filings. Remember that if you hide your valuable assets or income from your bankruptcy trustee, you may risk a number of penalties and complications. Among these is the possibility that you could be blocked from ever filing again.
After a bankruptcy, you may still see problems getting any kind of unsecured credit. Secured cards can be a great way to get started if this happens to you. That will show lenders that you are committed to rebuilding your credit. Once creditors see that you are making an effort to restore your credit, they may allow you to get an unsecured card in the future.
Ask those you know if they have an attorney to recommend, instead of finding one on the Internet or in the phone book. There are a number of companies who may take advantage of your situation, so always work with someone that is trustworthy.
Don’t pay to for an initial consultation with a bankruptcy attorney, and thoroughly question each candidate. Most lawyers will meet with you for free and give you helpful advice, so meet with several. Don’t choose a lawyer until your questions about bankruptcy are sufficiently answered. You don’t have to make your decision right after this consultation. Consulting with several attorneys will also help you find someone you trust.
Be sure to hire an attorney before you embark upon filing for personal bankruptcy. Bankruptcy is a complex process, and you probably don’t know all the information that is required to navigate it. When you engage the services of a bankruptcy lawyer, you can be assured of getting the help your need to proceed correctly.
Before you decide to declare bankruptcy, make sure that a less-drastic solution isn’t more appropriate. For example, there are credit counseling services that can help you to deal with smaller amounts of debt. You might also be able to negotiate lower payments yourself, but make sure that you get written records of any debt modifications to which you agree.
Know the differences between Chapter 7 and Chapter 13 bankruptcy. If Chapter 7 is what you file, your debts will get eliminated entirely. All of your financial ties to the people you owe money to will disappear. Chapter 13 bankruptcy though will make you work out a payment plan that takes 60 months to work with until the debts go away. It’s imperative that you know the differences among the various categories of bankruptcy so that you are able to choose the wisest one for you.
It’s a good idea to meet with a number of bankruptcy lawyers before settling upon one. The majority of them offer free initial consultations. Ensure that your meeting is actually with the attorney, not with a paralegal or an assistant. People in these positions are unable to offer legal advice. Look for a lawyer who you can relate to.
As mention earlier, you always have the option to file for bankruptcy. However, it should not be anyone’s first choice because it does not reflect well on credit. As long as you’re properly informed about which moves to take and when, you should have little trouble navigating the process and ultimately restructuring your credit.