Filing for bankruptcy can be a viable for anyone who has had their possessions repossessed by the IRS. Your credibility with lenders will take a beating, but sometimes bankruptcy is the only thing you can do. Read this guide in order to know more when it comes to filing bankruptcy as well as the consequences of doing so.
If you are in a position where you are unable to pay your debts, bankruptcy may be the only option for you. If you’re in this situation, learn about the laws where you live. Laws differ from one state to the other. For instance, some states protect you from losing your home in a bankruptcy, but others do not. Before filing for personal bankruptcy, be certain that you are familiar with the laws.
The primary catalyst for filing personal bankruptcy is having a large amount of debt that can’t be readily repaid. If this is happening to you, then learn about the laws where you live. Every state has a separate law having to do with bankruptcy. For example, whether or not you can keep your home, as well as what you need to do to keep it, is different for every state. See to it that you understand the bankruptcy laws in the area that you live prior to filing.
If you are thinking about paying off your tax obligations with a credit card and then filing bankruptcy, think again. In most states, you will still owe money to the IRS and have to take care of the interest of your credit cards. The rule here is that if you can get the tax discharged then you can get the debt discharged. So, there is no reason to use your credit card if it will be discharged in the bankruptcy.
Always be honest when filling out paperwork. It is vital that you disclose all information about your assets and income so there are no delays or penalties, such as a court barring you from filing again later in the future.
Don’t fear reminding your attorney of any specific details of your case. You should not take for granted that your lawyer will remember every important detail that you have have told him earlier without a reminder. Speak up if something is troubling you, as this is your future we are talking about here.
You can find a wealth of information concerning personal bankruptcy by searching for websites which offer information about it. The United States DOJ, along with a number of other bankruptcy institutes and attorneys specializing in bankruptcy can give you invaluable information. You need to spend some time gathering valuable information so you can file your bankruptcy with confidence.
Never pay for a consult with a bankruptcy lawyer, and ask plenty of questions. The majority of lawyers offer their first consult at no cost, so ensure you meet with several to find one that you like. The lawyer who properly answers your questions is the one you should hire. You need not decide right away. So, this gives you plenty of time to consult with several attorneys.
When a bankruptcy is imminent, retain a lawyer immediately. Bankruptcy can be highly confusing and stressful, and you need an unbiased partner who can help simplify the process. Talk to a bankruptcy lawyer, they can help clarify anything that you might have confusion with.
Finding out about your personal bankruptcy options is the difference between a successful and an unsuccessful claim. Filing for bankruptcy should not be your first choice. Staying informed on how to manage this situation could prevent you from experiencing headaches and it can also help you keep your valuables.
If you are thinking about paying off your tax obligations with a credit card and then filing bankruptcy, think again. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. Transferring the debt to another medium (e.g. a credit card) won’t magically make a tax debt discharagable, either. So as you can see, in this situation there is no need to use the card when the debt will be discharged when you file for bankruptcy.