Important Information To Know Before Filing Bankruptcy

July 7, 2013

TIP! Don’t think that loading up your credit card with tax debt and then filing for bankruptcy is an answer either. In many areas of the country, this debt will not be dischargeable, and you could be left owing a significant amount to the IRS.

There are quite a number of people who have been affected by the economy, and now find themselves buried in debt. Countless Americans are currently being harassed by debt collectors on a daily basis. If this sounds like you and your situation, filing for bankruptcy may be a good idea for you. Read on to learn if bankruptcy is the best decision for you.

TIP! Prior to filing for bankruptcy, discover which assets cannot be seized. There are several assets which are exempt from bankruptcy; therefore, consult the Bankruptcy code.

Do not use a credit card to manage your tax issues and then try to file bankruptcy. In most states, this is not dischargeable debt. Therefore, you will end up owing the IRS a lot of money. If the tax can be discharged, so can the 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.

TIP! Do not give up hope. If you file for bankruptcy at the right time it could enable you to get your property back that you lost to repossession.

Don’t look at bankruptcy as a first step. Look at all the other options you may have first. You have better options. For example, you could try credit counseling. If you file for bankruptcy, a mark is permanently left on your credit. Therefore, before you do this, you should utilize all the other options that you have.

TIP! Learn of new laws prior to deciding to file for bankruptcy. The laws are constantly undergoing changes, so you must stay on top of them if you are going to file for personal bankruptcy correctly.

When it comes to informing your attorney about your case, don’t be fearful. Don’t assume that they’ll remember something important later without having a reminder. Speak up, because it is your future on the line.

TIP! Learn what you can about Chapter 13 bankruptcies. If you owe an amount under $250,000 and have a consistent income source, Chapter 13 may be right for you.

Look for a bankruptcy lawyer that comes from a personal recommendation instead of someone random on the Internet or in the yellow pages. Although you may find a good lawyer through an advertisement, you can simply find a much better lawyer if the lawyer is recommended to you by someone who has gone through the process and who has the inside track on the lawyer’s true capabilities.

TIP! You should weigh every option before thinking about bankruptcy. Find out if you can receive a reduced interest rate or altered repayment plan instead of bankruptcy filing.

Clearly, significant resources and assistance can be had by anyone contemplating personal bankruptcy. Bankruptcy can help you start over with and give you tools to become a more responsible consumer.

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