It is really scary to be way over your head in debt. There are times that having a small financial problem turns into a huge one. You may realize that your options at this point are limited. This article will help you decide if bankruptcy is the way to resolve your debt problems, and if it is, give you some tips for navigating the process.
Most people that file for bankruptcy owe a lot of money that they could not pay off. If this sounds like you, start familiarizing yourself with your state laws. Each state has its own laws regarding personal bankruptcy. For instance, your home might be protected in some states while you might lose it in others. It is important to understand the laws in your state before filing for bankruptcy.
Do not even think about paying your taxes with credit and petitioning for bankruptcy right after. In most states, this is not dischargeable debt. Therefore, you will end up owing the IRS a lot of money. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. This means using a credit card is not necessary, when it will just be discharged.
Ensure that you are providing genuine details when filing a bankruptcy petition, because honesty is the best policy when dealing with bankruptcy. Not only is hiding income and assets wrong, it is also a crime.
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.
Find a specialized lawyer if you are thinking about filing for bankruptcy. Bankruptcy can be highly confusing and stressful, and you need an unbiased partner who can help simplify the process. A lawyer that specializes in bankruptcy can make sure you are following the correct procedures in your filing.
Do some research about laws and legislation before filing. The laws change a lot, so you need to look them up and have a better idea of how to properly approach the bankruptcy process. Your state’s website should have the information that you need.
Become knowledgeable in regards to details about chapter seven bankruptcy vs. chapter 13 bankruptcy. Take time to research this online and see the pros and cons for filing each one. If you have trouble understanding the wealth of information, talk to your lawyer so he or she can help you make an informed choice.
File when the time is perfectly right. They say timing is everything, and this rings true when filing for bankruptcy. In some cases, it is better to file immediately, while other situations benefit from trying to get certain finances in better shape before filing. Speak with a lawyer specializing in bankruptcy in order to learn when you should file your petition.
Be sure you know the bankruptcy laws before you think about filing. For example, it is forbidden for an individual to transfer any assets away from the name of the filer within the twelve months preceding filing. Also, the filer can not increase their debt before filing.
When filing for personal bankruptcy, always supply all of your financial information. If the court thinks you are attempting to conceal information, your petition could be denied. Make sure that you add very small sums, even if you believe that they aren’t important. This might take the form of odd jobs, extra cars and outstanding personal loans.
Organize your debts into an easy-to-read list. This will be the basis for your bankruptcy filing, so make sure you include all the debts you are aware of. Include your exact balance on each account. Take care not to miss any debts that you need to disclose, or you will be responsible for paying them back after you have filed for bankruptcy.
Do your research before hiring a bankruptcy attorney. This type of legislation is popular for the inexperienced. Try to get a lawyer that has a lot of experience and one that is properly licensed. A basic Internet search can turn up client ratings and relevant background information.
When you file for bankruptcy, you need to list every single debt that you want wiped out. If you have debts that are not listed on the paperwork, they will not be included in the discharge. It is solely your responsibility to ensure all important information is documented. Doing so can help you make sure you don’t end up paying debts that should have been discharged.
If you are about to get divorced and you are having financial hardships, you may want to rethink your divorce. Many people find themselves filing for bankruptcy after a divorce. You should make every effort to attempt a fix.
Credit Card
It’s important that you understand that bankruptcy is not a way to get out of paying tax debt. Some filers pay their taxes due with a credit card and then file for bankruptcy. This is done on the mistaken belief that since the amount owing is now owed to a credit card, they will get away with not paying taxes. This is illegal, however, and you will be stuck with the balance owed on your card, as well as the fees and interest that it accumulates.
Sometimes you get overwhelmed with life and you feel as if there’s nothing that you can do about it. This guide has given you great pointers on the things that you could do to have control over your finances as you face bankruptcy. Take the advice that was given and make a difference in your life.
