Embarking on a personal bankruptcy filing can be quite complicated. Because of the various types of claims out there, and also the different ways in which you can approach filing, your particular situation will be personal to you. Before you decide to file for personal bankruptcy, you need to educate yourself about it. The ideas in this article are a great place to start.
Visit web sites and read information to learn as much as possible about the topic of personal bankruptcy. The United States Department of Justice and American Bankruptcy Institute are two such places to look. The more you know, the more you’ll knwo that you’ve made a wise decision and the you’re making sure your bankruptcy goes as smooth as possible.
Don’t use a credit card to pay off your taxes before filing for bankruptcy. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. So it does not help you to put the tax bill on your charge card if you know the debt will be discharged anyway.
When it gets time to think about bankruptcy, avoid using your retirement or savings to pay off the creditors or even make attempts to settle the debt. Leave your retirement accounts untouched unless there is absolutely no other alternative. Although you may need to tap into your savings, you should not use up all of it right now and jeopardize the financial security of your future.
Don’t be reluctant to remind your lawyer about specific details he may not remember. Inaccurate or incomplete information can lead to your petition being denied. Ultimately, this is your bankruptcy and your financial future, so never hesitate to advocate on your behalf.
You might experience trouble with getting unsecured credit after filing for bankruptcy. This being the case, look at secured card options. They offer you the chance to demonstrate the seriousness with which you now take your financial obligations. Once creditors see that you are making an effort to restore your credit, they may allow you to get an unsecured card in the future.
Think carefully about your different options before filing for bankruptcy. For example, there are credit counseling services that can help you to deal with smaller amounts of debt. You may have luck negotiating lower payments by dealing directly with creditors, but be sure to document any get and new agreement terms in writing from each creditor.
Do what you can to keep your home. Filing for bankruptcy does not always mean you will end up losing your home. You might be able to keep your home, for instance, if you have two mortgages or if your home has lost its value. You are still going to want to check into homestead exemption either way just in case.
Become knowledgeable in regards to details about chapter seven bankruptcy vs. chapter 13 bankruptcy. Research both types of bankruptcy online, and weigh the positives and negatives each would offer you. If you’re really not sure how this all works after your research, meet with your lawyer and ask them prior to making a decision.
Bankruptcy is not a decision to be taken lightly. If you feel that it is best for you to file for bankruptcy, a qualified attorney can be of great assistance, ensuring you make the best choices.