Reasons Why Personal Bankruptcy Might Be Your Best Option

June 21, 2013

TIP! Think twice if you have struck upon the idea of paying off your taxes by credit card and subsequently filing for personal bankruptcy. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS.

The decision to file for bankruptcy is very serious and should not be taken lightly. Keep reading the ideas in the piece that follows in order to understand what you can expect and what ought to go into making such a major decision. Take the time to do learn everything you can before filing.

Bankruptcy Laws

TIP! Do not be afraid to remind your attorney of important specifics of your case. Don’t assume that he’ll remember something from a month ago; tell him again.

Many people need to file for bankruptcy when they owe more money than they can pay off. If you have unmanageable debt, you need to familiarize yourself with regional bankruptcy laws. Bankruptcy laws vary from state to state. You may find your home is safeguarded in one state, while in another it isn’t. You should be aware of local bankruptcy laws before filing.

TIP! If you are planning to file for bankruptcy, be sure to learn what types of assets you will be able to keep and which can be seized. You can find a listing of the asset types that are excluded from bankruptcy in the Bankruptcy Code.

Be certain to gain a thorough understanding of personal bankruptcy by using online resources. The United States DOJ, along with a number of other bankruptcy institutes and attorneys specializing in bankruptcy can give you invaluable information. The more information you have, the more confident you can be about any decision you make and you will know that you are doing the best thing possible for your situation.

TIP! You should never give up. Filing a bankruptcy petition might facilitate the return of your property, including cards, electronics or other items that may have been repossessed.

Avoid paying for a consultation with the bankruptcy attorney, but do ask many questions. It is a good idea to consult several attorney before deciding on one. Only choose an attorney once all your concerns are answered to your satisfaction. You do not need to make a decision immediately after the consult. You could even go to different lawyers for advice.

TIP! Before pulling the trigger on bankruptcy, be sure that other solutions aren’t more appropriate for your case. For example, consumer credit counseling services can often help you figure out a workable repayment plan with creditors.

Before declaring bankruptcy, be sure you’ve weighed other options. For example, consumer credit counseling programs can help if your debt isn’t too large. You could even negotiate for lower payments. However, you should ensure that you always obtain a written record of all the changes to your debt that you’ve agreed to.

TIP! Make certain that you comprehend the differences between Chapters 7 and 13. Chapter 7 bankruptcy is intended to wipe out all outstanding debts.

As shown in this article, bankruptcy doesn’t happen overnight. You must do a wide variety of things correctly. Hopefully, with what you learned today, you learned what it means to file for bankruptcy and you can avoid being in this situation in the future.