You shouldn’t decide to file for bankruptcy on a whim; the choice can be life changing. Read the tips and suggestions in the following article so you know what to expect and just what you should be doing before you make that important decision. It’s important to prepare yourself by learning ahead of time.
Learn as much as you can about bankruptcy by going to informational websites. The United States Justice Department, the ABI (American Bankruptcy Institute), as well as the NABCA (National Assoc. Consumer Bankruptcy Attorneys) are excellent sources of information. The more knowledgeable you are, the more you can be sure that you are making the right decision and that you are taking the right steps to ensure your personal bankruptcy goes as smoothly as possible.
Don’t pay tax requirements with your credit cards with the thought of starting the bankruptcy process afterward, without doing your research first. In most states, you will still owe money to the IRS and have to take care of the interest of your credit cards. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. It is pointless to use credit cards if they can be discharged.
The best way to build your credit up after a bankruptcy is making all your payments on time. Since it is important that you work to rebuild your credit, you should instead think about applying for a secured card. When you do this, it shows your determination to fix your credit history. After a while, you may be able to get unsecured credit again.
Although you can find many bankruptcy attorneys listed in your local Yellow Pages or online, it’s best if you can find one through the personal recommendation of a friend, family member or acquaintance. Although you may find a good lawyer through an advertisement, you can simply find a much better lawyer if the lawyer is recommended to you by someone who has gone through the process and who has the inside track on the lawyer’s true capabilities.
Be honest when filing for bankruptcy, because hiding liabilities or assets can only cause trouble to you. Your bankruptcy lawyer has to know every detail of your finances, whether bad or good. Do not hold anything in secret and create a strategy on how you will deal with the things you are facing.
Before you decide to declare bankruptcy, make sure that a less-drastic solution isn’t more appropriate. For example, there are credit counseling services that can help you to deal with smaller amounts of debt. You may also find success in negotiating lower payment arrangements yourself, but be certain to get any arrangements with creditors in writing.
Don’t pay to for an initial consultation with a bankruptcy attorney, and thoroughly question each candidate. Most attorneys offer free consultations, so meet with a number of them before you retain one. You should make a final decision only once all of the questions or concerns are sufficiently attended to. You can think about your decision before making a commitment. You can take as much time as you need to meet with different lawyers.
It is imperative that you retain an experienced attorney if you are planning to file bankruptcy. It is unlikely that you will be able to comprehend all the various rules and regulations involved in bankruptcy law. A personal bankruptcy attorney can help and guide you along through the bankruptcy process.
As shown in this article, bankruptcy doesn’t happen overnight. There is a long list of items you need to do, and make sure they are done correctly. By following the above advice, you will make fewer mistakes and find yourself better prepared.
It’s a good idea to meet with a number of bankruptcy lawyers before settling upon one. The majority of them offer free initial consultations. Be certain you talk to the lawyer, himself, instead of a paralegal or assistant; those people aren’t allowed to give legal advice. By meeting with several attorneys through a free consultation you will be able to choose which attorney you feel more comfortable with.