Handy Tips On When You Should File For Bankruptcy
It isn't always easy to file for personal bankruptcy. Bankruptcies come in different types; what you choose is subject to your financial situation and the kind of debts that you have. You should learn all you can about bankruptcy before filing. Check out the tips listed below if you want some solid info on the subject.
Do not consider paying off tax debt with credit cards and filing for bankruptcy afterward. It won't work. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. This makes using a credit care irrelevant, since bankruptcy will discharge it.
As bankruptcy appears on the horizon, don't take your savings or retirement accounts to try to pay off all your bills. You should make every effort to leave your retirement accounts untouched until your retire. You may need to withdraw some funds from your savings account, but don't take everything that is there as you will be bereft of any financial backup if you do.
Be sure to remind your lawyer if it seems that some details of your situation are forgotten. It is wrong to assume that your lawyer will remember every word you ever utter! Remember that you're the boss. You're paying your lawyer, so you should not be afraid to have your say. After all, the quality of your life hangs in the balance.
Prior to filing for bankruptcy, research which assets will remain exempt from creditors. There are some assets that cannot be seized through bankruptcy, and the law lists those assets. It's crucial to read that list before filing to see which of your prized possessions can be seized. Failure to do this could cause some ugly surprises down the road when you discover that your valuables must be seized.
When you do meet with a lawyer make sure that they answer all of your questions and that they do not charge you for consultation alone. Most attorneys offer free consultations, so meet with a number of them before you retain one. Make a decision when all your concerns and questions have been addressed well by one lawyer in particular. You can think about your decision before making a commitment. Take your time, and schedule consultations with more than one lawyer.
Consider if Chapter 13 bankruptcy is an option. If you are receiving money on a regular basis and your unsecured debt is under $250,000, you may be able to file Chapter 13 bankruptcy. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. Lasting anywhere from three to five years, this plan will allow you to be discharged from unsecured debt. However, if you miss even one payment, the court will dismiss your entire case.
You will now be aware that a good deal of thought should be applied before bankruptcy papers are filed. If you choose bankruptcy as a financial answer for your situation, you can only benefit from having a lawyer dedicated to this industry to help you out.
Do not consider paying off tax debt with credit cards and filing for bankruptcy afterward. It won't work. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. This makes using a credit care irrelevant, since bankruptcy will discharge it.
As bankruptcy appears on the horizon, don't take your savings or retirement accounts to try to pay off all your bills. You should make every effort to leave your retirement accounts untouched until your retire. You may need to withdraw some funds from your savings account, but don't take everything that is there as you will be bereft of any financial backup if you do.
Be sure to remind your lawyer if it seems that some details of your situation are forgotten. It is wrong to assume that your lawyer will remember every word you ever utter! Remember that you're the boss. You're paying your lawyer, so you should not be afraid to have your say. After all, the quality of your life hangs in the balance.
Prior to filing for bankruptcy, research which assets will remain exempt from creditors. There are some assets that cannot be seized through bankruptcy, and the law lists those assets. It's crucial to read that list before filing to see which of your prized possessions can be seized. Failure to do this could cause some ugly surprises down the road when you discover that your valuables must be seized.
When you do meet with a lawyer make sure that they answer all of your questions and that they do not charge you for consultation alone. Most attorneys offer free consultations, so meet with a number of them before you retain one. Make a decision when all your concerns and questions have been addressed well by one lawyer in particular. You can think about your decision before making a commitment. Take your time, and schedule consultations with more than one lawyer.
Consider if Chapter 13 bankruptcy is an option. If you are receiving money on a regular basis and your unsecured debt is under $250,000, you may be able to file Chapter 13 bankruptcy. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. Lasting anywhere from three to five years, this plan will allow you to be discharged from unsecured debt. However, if you miss even one payment, the court will dismiss your entire case.
You will now be aware that a good deal of thought should be applied before bankruptcy papers are filed. If you choose bankruptcy as a financial answer for your situation, you can only benefit from having a lawyer dedicated to this industry to help you out.
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