It is unfortunate that many people are currently facing bankruptcy. The economic downturn has played a large role. Prior to taking the plunge and filing for bankruptcy, you need information to know if it is right for you, and if it is, what kind of bankruptcy to file. Keep reading for the knowledge you need.
You can find a wealth of information concerning personal bankruptcy by searching for websites which offer information about it. The U.S. Department of Justice, NACBA, and American Bankruptcy Institute websites are all great places to go for up-to-date information. By having more knowledge, you can make the right decision, as well as be sure you are ensuring that your personal bankruptcy case goes smoothly.
Filing for bankruptcy is something many people are forced to do when there debts become too much of a burden, and they can no longer afford to pay them. If you have unmanageable debt, you need to familiarize yourself with regional bankruptcy laws. The laws governing bankruptcy vary from state to state. You may find your home is safeguarded in one state, while in another it isn’t. It is important to understand the laws in your state before filing for bankruptcy.
Credit Card
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. Credit card debt is handled charge by charge during bankruptcy, and in most states, tax debt cannot be discharged through bankruptcy. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. Because of this, transferring the debt to your credit card is pointless.
Always be honest when filling out paperwork. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
Before undertaking the bankruptcy process, ensure you have made the correct decision. There are plenty of other options open to you, like consumer credit counseling. If you file for bankruptcy, a mark is permanently left on your credit. Therefore, before you do this, you should utilize all the other options that you have.
If you are meeting with a lawyer to discuss bankruptcy, the initial consultation should be free so ask every question you have. Since most attorneys offer free consultations, meet with a few attorneys before deciding who to hire. Make a choice only if you have received good answers to all the questions and concerns you brought to the table. It’s isn’t necessary to make a choice right away. So you have sufficient time to speak with a number of lawyers.
As you must realize by now, bankruptcy is the topic of many dinner conversations lately because of the economy. Let the advice you have received from this article be a guide to help you make the right choices for you and your finances.