Filing for personal bankruptcy is an option that anyone with property repossessions should consider. Depending on personal circumstances, personal bankruptcy can be the only sensible option, despite the hit it levies on credit availability. Keep reading to gain a better understanding of the bankruptcy process and of the ramifications of initiating a filing.
Don’t use a credit card to pay off your taxes before filing for bankruptcy. In most states, this is not dischargeable debt. Therefore, you will end up owing the IRS a lot of money. Generally speaking, debt incurred to pay taxes and the tax bills themselves are treated the same in a bankruptcy. It is pointless to use credit cards if they can be discharged.
Research what assets are exempt from seizure before you decide to declare bankruptcy. Certain assets, as listed in the local bankruptcy regulations, are immune from seizure during bankruptcy. Prior to filing for bankruptcy, it is critical that you go over this list, so that you know if you can expect any of your most valuable possessions to be seized. This will ensure that you do not have any surprises once you have filed bankruptcy.
It is imperative that you retain an experienced attorney if you are planning to file bankruptcy. You might not understand all of the various aspects to filing for bankruptcy. A personal bankruptcy lawyer will be able to help you and ensure you are doing things the proper way.
Before you decide to file bankruptcy, be sure to check for any new laws that may apply to your case. Laws are ever-evolving. You must stay current with bankruptcy laws if you want to be successful in your challenge. Check the website of your state’s legislation or get in contact with your local office to learn more about these important changes.
Since the majority of attorneys are willing to provide no-cost initial consultations, it is smart to meet with more than one before you make a selection. Meet with the actual lawyer, not a paralegal or assistant, as they’re not allowed to give out legal advice. By meeting with several attorneys through a free consultation you will be able to choose which attorney you feel more comfortable with.
You can take steps to hang onto your house. There are many options available to help protect you from losing your home. It depends what your home value is and if there is a second mortgage, as all this stuff comes into play when determining if you can keep the home. There are other options such as a homestead exemption which offers you a chance to remain in your home, depending on whether or not you meed certain financial conditions.
Before filing bankruptcy consider every available avenue. You may find consolidating your debt may be simpler. Declaring bankruptcy is a very involved process that can cause a good deal of anxiety. The future of your credit will be greatly affected. Because of this, you should be sure that bankruptcy is your only option before you file.
Spending time with the people you love is something you should do now. Undergoing bankruptcy can be a difficult experience. It is long, hard and sometimes leaves people feeling guilty or ashamed. A lot of folks decide to hide themselves from the world around them until the end of the process. You shouldn’t do this, though, as staying away from the world can amplify any emotional issue you are having, and they could even morph into full-blown clinical depression. Thus, you must keep living your life and socializing with those you love, no matter what is going on with your bankruptcy.
Investigate other alternatives before resorting to bankruptcy. Before filing, talk with an attorney who can help you weigh all of your options. If a foreclosure is your reason for filing look into your options with your bank first, such as a loan modification. The lender may be willing to reduce interest rates, eliminate late charges or extend the life of the loan. Most creditors will be willing to work out an option to avoid not getting paid at all.
It goes without saying that, bankruptcy is always available as an option. Nonetheless, you should remember the negative impact filing for bankruptcy will have on your credit rating. For this reason, filing for personal bankruptcy should be your last resort. Don’t sit back and let the process take control of you. Take control of the process by doing your research so that you don’t lose more than you need to.
