Before You File – Everything You Need To Know About Bankruptcy

August 19, 2013

TIP! Do not be afraid to remind your attorney of important specifics of your case. Lawyers are people too, and sometimes they forget important information and need to be reminded.

It’s scary to have a ton of debt hanging over your head. Sometimes, it just snowballs from having a little bit of a financial issue to losing complete control in a short amount of time. If you’re not careful along the way, debt can be a complicated process to get out of. The article you are about to read will give you advice on dealing with your debts through bankruptcy.

TIP! Do some research to find out which assets you could lose by filing for personal bankruptcy. The Bankruptcy Code lists assets considered exempt from being affected by bankruptcy.

If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. In many areas of the country, this debt will not be dischargeable, and you could be left owing a significant amount to the IRS. In most cases, you can use the adage that “a dischargeable tax is a dischargeable debt.” This means using a credit card is not necessary, when it will just be discharged.

TIP! Never pay to have a consultation with a lawyer, and ask a lot of questions. Most lawyers offer free consultations, so consult with a few before settling on one.

When you feel certain that you must file for personal bankruptcy, refrain from squandering your life savings to pay off unsecured debt. Retirement accounts should never be touched if it can be helped. While you may have to use a part of your savings, never completely wipe it out which would only leave you in worse financial shape in the future.

TIP! Be sure that bankruptcy really is your best option. It might be possible to consolidate some of your debt instead.

Do some research to find out which assets you could lose by filing for personal bankruptcy. To find an itemized list detailing assets exempt from bankruptcy, find the Bankruptcy Code. It is crucial to read the list before you file for bankruptcy so you know whether your favorite items will be taken. If you neglect this important step, you might be blindsided when a possession that is important to you is taken to repay creditors.

TIP! Avoid filing for bankruptcy if you make more money than your monthly bills. You should know that filing for bankruptcy will ruin your credit score for at least ten years and that improving your credit score will be expensive.

There are times when the events of life can be quite overwhelming and you can feel quite helpless. The above article has provided you with advice to allow you to handle your finances and deal with the option of bankruptcy. Use this information to make a fresh start!