Thinking About Filing For Bankruptcy? Try These Tips!
Posted at by PConran on category BankruptcyThe national economy remains in poor condition. A lot of people with no jobs find themselves in debt. Rising personal debt leads, in many cases, to increased bankruptcy filings. If you, a friend, or a loved one is in financial trouble, this article could help decide if bankruptcy is the right option.
Do not use a credit card to manage your tax issues and then try to file bankruptcy. You will find few states that discharge this kind of debt. You may also wind up owing a lot of money to the IRS. One thing that you should remember is that if your tax is dischargable, your debt will also be dischargeable. Just because your credit card could be discharged in bankruptcy does not mean you should use it.
When you realize that you probably will file for bankruptcy, do not pay your creditors or try to avoid bankruptcy by spending all of your regular or retirement savings. You shouldn’t dip into your IRA or 401(k) unless there is nothing else you can do. 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.
If you know people who have filed for bankruptcy, ask them who they would recommend rather than relying on Internet reviews or worse, just randomly picking someone out of the phone book. To handle your bankruptcy, you need a trusted attorney, not a shady one that is out to take your money.
Educate yourself about state bankruptcy laws and possible outcomes before filing your petition. These laws change regularly and you should stay up-to-date so you can make the best decisions. Check the website of your state’s legislation or get in contact with your local office to learn more about these important changes.
Think carefully about your different options before filing for bankruptcy. For example, you want to look into credit counseling. This is the best option for small debts. You could even negotiate for lower payments. However, you should ensure that you always obtain a written record of all the changes to your debt that you’ve agreed to.
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. By law, paralegals and assistants can not give legal advice, so be sure that you are meeting with an actual attorney. Interviewing multiple attorneys is a good way to find the best fit.
Find out more about Chapter 13. If you posses a regular source when it comes to income, and you have less than $250,000 of unsecured debt, you could file using Chapter 13 bankruptcy. This will allow you to keep your personal property and real estate and repay your debts via a debt consolidation plan. Generally, this stays in effect for up to 5 years. Afterwards, your unsecured debts clear from your accounts. Keep in mind that missed payments will trigger dismissal of your case.
As stated from the above article, the economy right now not in the best of shape and lots of people are hurting financially. Just keep in mind that there are resources available to help you to avoid using bankruptcy, even if you do not have steady income. You hopefully have more knowledge now on how you can avoid bankruptcy. Best of luck to you.