Things You Need To Know Before You File Personal Bankruptcy

July 5, 2013

TIP! You should avoid paying your taxes with credit cards and then immediately file for bankruptcy. The fact is that the credit card debt will be ineligible for discharge, and your tax debt may increase.

Bankruptcy is a decision that should be thoroughly thought about. Doing your research, partially by reading articles like this one, is an important first step in filing for bankruptcy. Find out all the information you can before filing for bankruptcy.

TIP! Don’t be afraid to remind your attorney of certain details in your case. Never assume that they can remember all details without reminders.

It is important to remind your lawyer of any details that may be important to your case. Many times a lawyer may forget a key detail; therefore, it is important to remind your lawyer of any key information. Do not hesitate to speak up; this is your hearing and your future is on the line.

TIP! Before you file for personal bankruptcy, be sure that you are cognizant of all current laws. Bankruptcy laws constantly change and it’s crucial you know about them so you the process of filing for bankruptcy goes smoothly.

When a bankruptcy is imminent, retain a lawyer immediately. Filing for bankruptcy is a complicated procedure, and you may not be aware of all the ins and outs. A personal bankruptcy attorney can help and guide you along through the bankruptcy process.

TIP! Most bankruptcy lawyers give free consultation, so try to meet with these types of lawyers before deciding on hiring one. Be certain you talk to the lawyer, himself, instead of a paralegal or assistant; those people aren’t allowed to give legal advice.

It’s a good idea to meet with a number of bankruptcy lawyers before settling upon one. The majority of them offer free initial consultations. It is important to meet with the actual attorney, not the attorney’s assistant or paralegal; those people are not permitted to give legal advice By meeting with several attorneys through a free consultation you will be able to choose which attorney you feel more comfortable with.

Unsecured Debt

TIP! Don’t file for bankruptcy the income that you get is bigger than your bills. Though bankruptcy may appear to be a good way to escape your debts, it does affect your credit negatively for a fairly long time.

Consider Chapter 13 bankruptcy for your filing. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. You can secure your home under Chapter 13 and pay your debts with a payment plan. This plan normally lasts from three to five years, in which you’ll be discharged from unsecured debt. Keep in mind that even missing one payment can be enough for your whole case to get dismissed.

TIP! Make sure bankruptcy is truely your only option before filing. Before filing, talk with an attorney who can help you weigh all of your options.

Bankruptcy isn’t simple and immediate. There are many things that must be taken care of, and must be done right. If you follow the advice given here, you’ll be able to make sure you have everything in order for when you file bankruptcy.