Bankruptcy is a difficult decision for anyone to make; however, it is sometimes necessary. The best way to deal with the process is to become educated on the subject. Read on for knowledge and wisdom passed on from those who have gone through bankruptcy themselves.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. A common rule is that dischargeable tax means dischargeable debt. Therefore, you have no reason for use of a credit card, if the amount is to be discharged in due process of the bankruptcy.
Don’t use a credit card to pay off your taxes before filing for bankruptcy. You will find few states that discharge this kind of debt. You may also wind up owing a lot of money to the IRS. One thing that you should remember is that if your tax is dischargable, your debt will also be dischargeable. Because of this, transferring the debt to your credit card is pointless.
It is essential that you are honest and forthright in the documentation you provide for your bankruptcy filings. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
Do not hesitate to remind your lawyer of any details regarding your case. Chances are that you may have forgotten to tell them about certain specifics that may be important to your filing. This is your bankruptcy and your future, so never be nervous about speaking your mind.
Don’t throw in the towel. Many times you can get repossess property back once bankruptcy has been filed. Any property repossessed within 90 days before filing bankruptcy, may be able to be returned to you. Talk to your lawyer to find out how to go about properly filing a petition.
There is hope! There may still be way to get repossessed items back after you file for bankruptcy. If you have been subject to a repossession during the 90 days before your filing, you stand a good change of getting your property back. Talk with an attorney who can guide you through the process of filing a petition.
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. Look for a lawyer who you can relate to.
Bankruptcy Really
Be sure that bankruptcy really is your best option. Perhaps just consolidating some of your existing debt, could make them easier to manage. Filing a claim can take a long time and cause much stress. You will have trouble getting credit down the line. Thus, you must make certain that bankruptcy really is the only viable solution to your problems.
Learn of new laws prior to deciding to file for bankruptcy. The laws change a lot, so you need to look them up and have a better idea of how to properly approach the bankruptcy process. A qualified bankruptcy attorney is the best source for the latest information regarding the laws in your state.
Sometimes declaring bankruptcy is simply the only viable option, even though it’s one that nobody wants to take. Now that you have read through this article, you should be familiar with a lot of tips from people who were once in your shoes. Spending some time learning for others who have gone through the same thing reduce some of your stress.