Deciding to file a bankruptcy petition is quite significant and should be done carefully and deliberately. Look through the suggestions this article has to offer so you understand the ideas you should be thinking about when it comes to filing for bankruptcy. Research the topic extensively in advance.
If you are in a position where you are unable to pay your debts, bankruptcy may be the only option for you. If you find yourself needing to file for bankruptcy it is important to familiarize yourself with the state laws. The laws governing bankruptcy vary from state to state. In a few states, they see to it that your house is protected. This is not the case when it comes to other states. Do you research about legal ins and outs in your state before you begin the bankruptcy process.
You should avoid paying your taxes with credit cards and then immediately file for bankruptcy. In many areas of the country, this debt will not be dischargeable, and you could be left owing a significant amount to the IRS. Bear this in mind; if the tax can be discharged, then the debt can be as well. So, there’s no reason to make use of a credit cards if it will not be discharged in bankruptcy.
Unsecured Credit
After a bankruptcy, you may still see problems getting any kind of unsecured credit. If this happens, instead you should turn your attention to secured credit cards. Using a secured card not only helps to rebuild your credit, but it also keeps you from going more in debt with credit card bills. Eventually, you could be able to obtain unsecured credit.
Prior to filing your bankruptcy petition, go over the list of assets that cannot be seized by creditors. To find an itemized list detailing assets exempt from bankruptcy, find the Bankruptcy Code. It is vital that you completely understand which assets are protected and which assets can be seized prior to filing bankruptcy. It is important to know what types of possessions may be taken away before they actually are seized.
Don’t ever pay a bankruptcy attorney for a consultation, and ask a lot of questions. Nearly all attorneys offer free initial consultations, so you should be able to meet with a few before you make a final hiring decision. Only choose an attorney once all your concerns are answered to your satisfaction. It is not necessary to decide immediately after your consultation. You have lots of time for consulting with other lawyers.
Be sure to enlist the help of a lawyer if you’re going to be filing for bankruptcy. Bankruptcy is complicated, and having someone to help you navigate the process is crucial. A lawyer that specializes in bankruptcy can make sure you are following the correct procedures in your filing.
Chapter 7
Know the differences between Chapter 7 and Chapter 13 bankruptcy. The Chapter 7 variety can help you eliminate your debts almost entirely. You will be removed from any contracts you have with your creditors. On the other hand, filing for bankruptcy under Chapter 13 means you will have 60 months to pay your debts back. It is worth while to take your time to research both types of bankruptcy to decide which option works best for you, and your financial situation.
A free consultation is standard for bankruptcy attorneys, so shop around before settling on one. Always ensure that the person you meet with is a real lawyer, not a legal assistant or paralegal. These people can’t give legal advice. Looking for an attorney will help you find a lawyer you feel good around.
As shown in this article, bankruptcy doesn’t happen overnight. Several steps must be completed, and completed accurately. Take advantage of the advice in this article, and make sure everything you have is in order. With bankruptcy, you can’t be too careful.
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