You may feel quite frightened of the IRS if they threaten to repossess the things that are important to you, such as your jewelry or your car. You can stop calls from debt collectors and resolve your financial issues if you consider filing for bankruptcy. Keep reading for useful tips to help you through the process.
Don’t use credit cards to pay your taxes if you’re going to file bankruptcy. In most states, this is not dischargeable debt. Therefore, you will end up owing the IRS a lot of money. Transferring the debt to another medium (e.g. a credit card) won’t magically make a tax debt discharagable, either. There isn’t any reason to use a credit card to pay the tax bill since the bill can be discharged anyway.
Don’t feel bad if you need to remind your attorney about any specifics of your case. Just because you have told him something of importance that he will remember it. This is your bankruptcy case, so do not be afraid to remind your lawyer of any key facts.
Credit Card
The best way to build your credit up after a bankruptcy is making all your payments on time. Look into getting a secured credit card in order to get back on your feet with building credit. Having a credit card of any type will allow creditors to realize that you’re attempting to work in the right direction to repair your credit. Unsecured credit may be offered to you quicker than you think after doing so.
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. You want your bankruptcy to go smoothly, and the Internet is rife with fly-by-night companies whose only goal is to prey upon the financially desperate.
You should be able to meet with a specialized lawyer for free to ask your questions. When you arrive at a consultation ask plenty of questions. You should also seek free consultations from several attorneys prior to choosing one. Decide which lawyer you like best buy reviewing all of the lawyers’ answers to your questions. Choose the lawyer who addressed your issues the best. You don’t need to decide what to do right away. So, this gives you plenty of time to consult with several attorneys.
Meet with a few attorneys who offer free consultations before hiring one. Just be sure that the person you speak with really is the lawyer, rather than a paralegal, since they cannot legally give advice. Interviewing multiple attorneys is a good way to find the best fit.
There are two different kinds of personal bankruptcy you can file for: Chapter 7 and Chapter 13. Do some research about these options so you can choose the best one. If anything you see is unclear or doesn’t make sense, go over it again with your attorney before making the final filing decision.
Chapter 13
Consider Chapter 13 bankruptcy for your filing. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. These kinds of plans usually range across 3, 4 and 5 years. Once this is done, all your unsecured debt will get discharged. Remember that missing a payment to the plan will result in your case being dismissed.
If you are moving forward with a Chapter 7 bankruptcy, you need to learn how that can negatively affect anyone who shares loans with you. Once you complete a Chapter 7 bankruptcy, you will be free of any responsibility of debt, which could put all responsibility on someone close to you. However, creditors can demand co-debtors pay the amount in full.
It is important to understand your rights when you file for bankruptcy. Do not take debt collectors at their word when they tell you that a specific debt can’t be discharged through bankruptcy. Only a small number of debts are not dischargeable, including student loans and child support obligations. If you are unsure about specific types of debt, check the bankruptcy laws in your state or consult an attorney.
Don’t drag your feet when it comes to filing bankruptcy. It is a mistake to ignore your financial troubles, hoping they will go away on their own. It is easy you to lose control of your debt, and avoiding the problem will make things worse. Once you are aware that your financial situation is not manageable any more, your best bet is to speak with a bankruptcy attorney and find out what he or she recommends.
Be certain you are totally aware of the laws of bankruptcy before you file. For instance, somebody cannot transfer assets from a filer’s name up to a year after they file. Additionally, it is against the law for any filer to boost up the debt amount they carry on any credit cards just before filing.
Personal Bankruptcy
Before petitioning, you need to know what the personal bankruptcy rules are first. Your case may be rife with issues due to pitfalls inherent in codes regarding personal bankruptcy. If the regulations are not followed, your case may be subject to a dismissal order. It is important to learn the bankruptcy code before filing bankruptcy. Doing this will make the process easier.
Although bankruptcy is an available option, it is best you look for alternative solutions first. Keep in mind that debt consolidation offers can be scams that do little more than get you into more financial trouble. Keep the advice from this piece in mind to help you make smart financial decisions.
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