It’s not uncommon for people to look down on others who choose bankruptcy, but one day find themselves in the same situation. Divorce or getting let go from a job can cause a person to look at personal bankruptcy as their sole choice. If that is your situation, you can find help by using the advice in this article.
It is important that you increase your knowledge on personal bankruptcy by reviewing websites that provide reliable information. Many sites, including the U.S. Department of Justice, NACBA, and American Bankruptcy Institute websites are all great places to go for up-to-date information. As with everything in life, the more you know about filing a claim, the better off you’ll be. You can properly prepare when you know what you’re preparing for.
Many people find that they must file for bankruptcy protection because they have more debt than they can afford to repay. If this describes your situation, it makes sense to become familiar with relevant laws. There are greatly varying laws concerning bankruptcy, so it is important to make sure you are getting the correct information. Your house is safe in certain states; however, in other states, it isn’t. It is important to understand the laws in your state before filing for bankruptcy.
Do not try to get clever by paying your taxes via credit card before you declare bankruptcy in an effort to dodge your tax burden. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS. If the tax can be discharged, so can the debt. So, there’s no reason to make use of a credit cards if it will not be discharged in bankruptcy.
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 lawyers out there who will take advantage of your financial state and not deal honestly with you. Make sure your filing process goes as well as possible by finding a trustworthy lawyer.
Determine which of assets are safe from seizure and which are not before filing for personal bankruptcy. The Bankruptcy Code contains a list of various assets that are excluded from bankruptcy. Make sure that you carefully look over this list prior to filing to discover if your valuable assets will be seized. This will ensure that you do not have any surprises once you have filed bankruptcy.
When you feel certain that you must file for personal bankruptcy, refrain from squandering your life savings to pay off unsecured debt. Avoid ever touching retirement funds until you have no other choice. Your savings accounts offer valuable financial security so try to leave them intact.
You should never give up. Certain property cannot be repossessed while you are in the process of filing for bankruptcy so be sure to learn about the laws in your state. You should be able to get your possessions back if they have been taken away from you within 90 days before you filed for bankruptcy. Discuss your options with a good lawyer who can help you with the filing of your bankruptcy petition.
Never pay to have a consultation with a lawyer, and ask a lot of questions. Most lawyers offer free consultations, so consult with a few before settling on one. Make a choice only if you have received good answers to all the questions and concerns you brought to the table. Take your time before you decide to file after you meet with your lawyer. That gives you the chance to speak to a number of lawyers.
Your most important concern is to protect your home. Filing for bankruptcy does not guarantee that you will lose your house. You might be able to keep your home, contingent on certain factors, such as your home decreasing in value or having a second mortgage. There are also homestead exemptions which, depending on your other finances, may allow to remain in your home.
Be around family as much as possible. Going through bankruptcy is a lot of stress. It is often overwhelming, and not quick. Some people may feel embarrassed or feel their self-esteem has taken a beating from it. Most people adopt a very negative attitude toward bankruptcy. Do not isolate yourself or you will put yourself at risk for depression. Spend time with your family, talk about your problems and find things that relax you.
If you’ve already tried everything you can think of to dig out of your financial mess, it might be time for bankruptcy. No matter how you arrived at this place, there is help available to reduce the stress you are under. You can find valuable information by reading this article.