You should never take your decision to file bankruptcy lightly. You need to be as well-informed as possible when you make bankruptcy decisions. Make sure to use what you learned from this article to make the right decisions. No matter what obstacles fall in your path, you can overcome them with good research.
Do not even think about paying your taxes with credit and petitioning for bankruptcy right after. In a lot of places, the debt cannot be discharged, and you may still owe money to the IRS. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. If you live in an area where tax can be discharged through bankruptcy, financing your tax bill is pretty pointless.
Don’t be afraid to apply for credit for purchases such as a new home or car just because you have a recently discharged bankruptcy. Many lenders will take your new financial situation into account. They may be more likely to loan money to someone who has no debt due to a bankruptcy than to the person with, say, 75,000 dollars in credit card debt. The fact that you have no monthly credit card payments can make you look like a better risk.
Consider hiring an attorney who specializes in personal bankruptcy. Although most states allow you to file for bankruptcy without a lawyer, your case could be dismissed if you don’t fill out your paperwork correctly, and you may need to file additional motions to protect your property or discharge certain debts. A bankruptcy attorney can help ensure that you get the outcome you hope for when you file.
If you have late payments on credit accounts or accounts that have been sent to collections, you are probably already aware of how insistent creditors can be. After you have filed for bankruptcy, you no longer need to endure the threatening and continuous phone calls from creditors and collection agencies. All you must do is refer them to your attorney who will confirm the bankruptcy for them. After this, it is illegal for creditors to harass you in any way.
Educate yourself about the bankruptcy process. You can increase your knowledge of the bankruptcy process by conversing with a bankruptcy attorney or by carrying out independent research on the internet. Whichever method you chose to increase your knowledge of the bankruptcy process, it is vital that you comprehend how filing for bankruptcy will affect yourself, your family and your creditors.
Before you decide to file for bankruptcy, be sure to obtain a free consultation with a bankruptcy attorney. Depending on where you live, you have the right to speak to an attorney before filing. Any good attorney will offer a first appointment free. This is an important consultation, as you will need the answers to many questions. These may include: attorney fees, what type of bankruptcy to file, and what types of information, paperwork you will need to provide. Most importantly, an attorney will be able to determine if filing for bankruptcy is the right decision for you.
As you can see by now, there are different ways of filing for personal bankruptcy. Just do not be overwhelmed with what you learn. Think carefully about your situation and the tips at hand. That way, you stand a better chance of making a wise decision.