Filing for bankruptcy is still an option for anyone who has had their possessions repossessed by the IRS.Bankruptcy is a major life decision, but it may be the only way out of your situation. The advice below will provide you with all the information you need to understand the results of choosing to file for bankruptcy and its possible consequences.
Don’t ever pay a bankruptcy attorney for a consultation, and ask a lot of questions. Most lawyers will meet with you for free and give you helpful advice, so meet with several. Only make a decision after you have met with several attorneys and all of your concerns and questions have been addressed. It is not necessary to decide immediately after your consultation. You have lots of time for consulting with other lawyers.
If you find yourself going through this, it makes sense to become familiar with relevant laws. Each state has its own bankruptcy laws. For example, in some states you can keep your home and car, while other states prohibit this. You should be familiar with the laws for your state before filing.
Be sure everything is clear to you about personal bankruptcy by using online resources. Department of Justice and National Association for Consumer Bankruptcy Institute are both sites that provide excellent information.
Protect your home. Bankruptcy filings do not necessarily mean that you have to lose your house. For instance, if your home value has dropped recently, or even if you happen to hold a second mortgage, you may not necessarily lose the home. Additionally, some states have homestead exemptions that might let you keep your home, provided you meet certain requirements.
Don’t use a credit card to pay your taxes before filing for bankruptcy.In many parts of the country, this debt won’t be discharged, and you could be left owing a significant amount to the IRS. This makes using a credit care irrelevant, when it will just be discharged.
When looking for a lawyer to handle your bankruptcy claim, your best option is to find someone who is recommended by someone you know versus someone who you find online or in the phone book. There are plenty of companies who know how to take advantage of people who seem desperate, so you must ascertain that your attorney can be trusted.
Although the entire process can be stressful, do not allow the stress to take over. The filing process is extremely stressful for a lot of the people who go through it. This stress could actually cause depression, if you don’t combat it. Once the process if over, your life will improve.
Don’t pay for an attorney consultation with a lawyer who practices bankruptcy law; ask him or her anything you want to know.Most lawyers will meet with you for free and give you helpful advice, so meet with a number of them before you retain one. Only choose a decision after you have met with several attorneys and all of your concerns and questions were answered. You do not have to make your decision right after the consultation. This will give you the opportunity to speak with other attorneys.
Be sure to enlist the help of a lawyer if you’re going to be filing for personal bankruptcy.You might not know everything you need to know in order to have a successful outcome of your case. A qualified bankruptcy attorney can guide you on how proceed properly.
Make sure that you act at the appropriate time. When it comes to filing for personal bankruptcy, timing is vital. There are occasions where it pays to delay and others where a quick decision is the best option. Speak with a bankruptcy lawyer about when the best time is to file for your specific needs.
Chapter 7
Be certain that you know how Chapter 7 and Chapter 13 differ. Chapter 7 eliminates all of your debt. Your ties with all creditors will be satisfied. Chapter 13 bankruptcy though will make you work out a five year repayment plan to eliminate all your debts.
It is important to file bankruptcy before its too late. For some people, they tend to ignore their poor financial situation and just wishing it away, but that is only putting you in more danger. Debts can get out of control fast. If you’re not taking care of these debts, you may be getting into trouble like wage garnishment. As soon as you see your debts getting out of control, seek the counsel of a good bankruptcy attorney to see what your options are.
Filing bankruptcy does not mean that you will lose your house. Depending on whether the value of your home has decreased or if you have a second mortgage on the home, you might be able to keep it. You are still going to want to check into homestead exemption because it may allow you to keep your home.
Understand the differences between Chapter 7 and a Chapter 13 bankruptcy. Take the time to find out about each one online, and then figure out which one will be best for your particular situation. If there is anything that you don’t understand, be sure to ask your attorney to explain anything that is unclear before you make your decision about filing.
Don’t take too long when trying to decide whether you want to file bankruptcy. It’s very difficult admitting you need help, but waiting too long can actually make it worse. Speaking with a professional quickly will provide you with the advice you need before things spiral out of control.
As mentioned earlier, there is always the opportunity to file for personal bankruptcy. Filing for bankruptcy should not be your first choice. Reading up on the right ways to handle your situation will save you a lot of headaches in the long run.