Declaring bankruptcy is anything but easy. There are multiple ways you can file for bankruptcy, and the one that best fits you will depend on your financial situation and what you owe. You should learn as much as possible about personal bankruptcy if you are trying to make a decision to file or not. The following tips will help put you on the right path.
Filing for bankruptcy is something many people are forced to do when there debts become too much of a burden, and they can no longer afford to pay them. If you’re in this situation, learn about the laws where you live. Different states use different laws when it comes to bankruptcy. In some states, your home is protected, while in others it is not. Be aware of bankruptcy laws before filing your claim.
Think twice if you have struck upon the idea of paying off your taxes by credit card and subsequently filing for personal bankruptcy. Most of the time, you cannot discharge this debt. As a result, you will owe the IRS a lot of money. Generally speaking, debt incurred to pay taxes and the tax bills themselves are treated the same in a bankruptcy. Therefore, you have no reason for use of a credit card, if the amount is to be discharged in due process of the bankruptcy.
Before filing for personal bankruptcy, make sure you are doing the right thing. Consider any other options that are available to you, such as consumer credit counseling. Before you take the drastic move of filling for bankruptcy and living with a long lasting bad credit history, make sure to consider using another way that may not be as damaging to your credit.
Instead of relying on random selections from the phone book or Internet, ask around and get personal recommendations. Companies are constantly popping up, claiming to help, yet only seek to profit from your misery. In ensuring that your bankruptcy is as simple as possible, trusting your attorney makes a big difference.
Don’t pay for an attorney consultation and ask him or her anything you want to know. When you arrive at a consultation ask plenty of questions. You should also seek free consultations from several attorneys prior to choosing one. Only make your decision if all your questions and concerns are adequately addressed. After the consultation, you are not immediately required to come up with a decision. This will give you extra time to interview several attorneys.
It is a good idea for you to hire a bankruptcy to handle your bankruptcy process. Bankruptcy is a complex process, and you probably don’t know all the information that is required to navigate it. A bankruptcy attorney can help yo,u and make certain you can do things the right way.
Know and understand the difference between filing for Chapter 7 bankruptcy versus Chapter 13 bankruptcy. Take the time to learn about them extensively, and then figure out which one will be best for your particular situation. If you do not understand what you are reading, talk to your attorney before making that serious decision.
Bankruptcy is not a decision to be taken lightly. Once you have determined that filing for personal bankruptcy is the right choice for a you, engage an experienced and respected lawyer. With the help of a good lawyer, you can make your way through the process easily and secure in the knowledge that you are doing it right.