Navigating The World After Declaring Personal Bankruptcy

August 29, 2013

TIP! Before you proceed with your personal bankruptcy case, review your decisions to be certain that the choice you are making is the right. You have other choices, including consumer credit counseling.

If you have been threatened by repossession of your possessions, it is time to think about filing for bankruptcy. Stop getting debt collector calls and figure out your finances by considering filing for personal bankruptcy. Continue reading for tips to help you get through bankruptcy.

TIP! When looking for a lawyer to handle your bankruptcy claim, the best way to go is off of a personal recommendation instead of simply flipping through the phone book. Bankruptcy attracts a lot of fly-by-night firms that take advantage of desperate people, and a word-of-mouth recommendation makes it more likely that your bankruptcy will go smoothly.

Most people end up filing for personal bankruptcy because they owe more than they make. If this sounds familiar, you should read up on the bankruptcy laws in your state. Each state has its own set of rules regarding bankruptcy. In some states, your home is protected, while in others it is not. Be aware of bankruptcy laws before filing your claim.

TIP! Prior to filing for bankruptcy, discover which assets cannot be seized. The Bankruptcy Code has lists of various asset types that are exempt during the process.

Before making the decision to file for bankruptcy, be sure to do some research and learn all you can about the subject. There are many websites available that offer this information. The United States Run a quick Internet search to find out all the different agencies you should be contacting or visiting via the web to find out what you can. The more you know, the better equipped you’ll be to make the wise decisions needed for a successful bankruptcy.

TIP! A lot of bankruptcy attorneys will let you have a consultation, so try several out. Just be sure that the person you speak with really is the lawyer, rather than a paralegal, since they cannot legally give advice.

If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS. If the tax has the ability to be eliminated, the debt can be too. Because of this, transferring the debt to your credit card is pointless.

TIP! Your most important concern is to protect your home. There are many options available to help protect you from losing your home.

Although bankruptcy is an available option, it is best you look for alternative solutions first. Be wary of debt consolidation companies who can drive you even further into debt. Keep in mind the tips from this article, so that you can make smart financial decisions and prevent debt in the future.