It is not uncommon these days for people to be drowning in debt. They are harassed by collection agencies and creditors and cannot get their finances under control. If you find yourself in these circumstances, you might want to think about filing for personal bankruptcy. Read this article to determine if this is the right approach for you.
If you are thinking about paying off your tax obligations with a credit card and then filing bankruptcy, think again. In many areas of the country, this debt will not be dischargeable, and you could be left owing a significant amount to the IRS. Keep in mind that if the tax debt is eligible to be discharged, then the credit card debt is also dischargeable. So it does not help you to put the tax bill on your charge card if you know the debt will be discharged anyway.
Before making the decision to file for bankruptcy, be sure to do some research and learn all you can about the subject. There are many websites available that offer this information. The United States Department of Justice and American Bankruptcy Institute are both sites that provide free advice. You need to spend some time gathering valuable information so you can file your bankruptcy with confidence.
Try to make certain you are making the right choice prior to filing your petition. Look into credit counseling to see if it could help you work out of your debt without bankruptcy. Bankruptcy can leave your credit history permanently marked. Prior to doing this you need to be sure you try everything else first to get your credit history into shape and to lessen the impact.
The best way to build your credit up after a bankruptcy is making all your payments on time. If you do, then try applying for a coupe of secured cards. This will show other people that you’re serious when it comes to having your credit record in order. Unsecured credit may be offered to you quicker than you think after doing so.
Do not hesitate to remind your lawyer of any details regarding your case. Just because you have told him something of importance that he will remember it. This is your bankruptcy and your future, so never be nervous about speaking your mind.
If you are considering filing for bankruptcy you definitely need to hire an attorney. Bankruptcy can be highly confusing and stressful, and you need an unbiased partner who can help simplify the process. A qualified bankruptcy attorney will guide you through the steps and help you do everything properly.
Familiarize yourself with any new law before you make the final step to filing for bankruptcy. Make sure to get the most up-to-date information concerning the bankruptcy laws in your state. To stay up-to-date on these laws, check out your state’s government website.
Understand the differences between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy. There is a wealth of information online about each type of bankruptcy and their respective pluses and minuses. If anything you see is unclear or doesn’t make sense, go over it again with your attorney before making the final filing decision.
When looking for a lawyer to handle your bankruptcy claim, the best way to go is off of a personal recommendation instead of simply flipping through the phone book. There are many companies who take advantage of financial desperation; that is why it is important that you get someone that is trustworthy.
If you are going to be filing for bankruptcy, think about filing Chapter 13. If you currently have some income and don’t have more than $250k in debt, you can declare bankruptcy. This will allow you to keep your personal property and real estate and repay your debts via a debt consolidation plan. The plan is usually for a term of three to five years, and a discharge will be granted at the end of that term. However, if you were to miss a payment, the court would dismiss your case right away.
Hopefully, you now understand that there are many options open to you when you are giving a personal bankruptcy filing serious thought. Tackling this in a logical and emotionless manner will relieve you of your debt issues while giving you a fresh start for the future.