Do you face significant financial burdens and think that bankruptcy is the best way to go? You’re in good company. Many individuals have turned to bankruptcy as a means of finding relief from financial hardship. So have a look through the contents of this article to see what you should know about bankruptcy.
Visit web sites and read information to learn as much as possible about the topic of personal bankruptcy. The United States D.O.J., the A.B.I and the N.A.C.B.A. are all useful organizations willing to provide educational material. The greater your body of knowledge, the better prepared you will be to make the decision of whether or not to file and to make certain that if you do file, the process is a smooth one.
Don’t use a credit card to pay off your taxes before filing for bankruptcy. In most states, you will still owe money to the IRS and have to take care of the interest of your credit cards. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. If you live in an area where tax can be discharged through bankruptcy, financing your tax bill is pretty pointless.
Honesty is of utmost importance during your filing, even though it may be tempting to “pad” your answers a little. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
Don’t fear reminding your attorney of any specific details of your case. Don’t just assume that the attorney will remember it automatically. It is in your best interest to speak out. You are in control of the outcome of your bankruptcy.
After a bankruptcy, you may still see problems getting any kind of unsecured credit. If so, apply for a secured credit card. When you do this, it shows your determination to fix your credit history. In time, it may be possible for you to obtain unsecured cards.
You should not have to pay for a consultation with a bankruptcy attorney. Make sure you ask lots of questions. Seek free consultations from a handful of lawyers, before deciding which one to hire. Make a decision when all your concerns and questions have been addressed well by one lawyer in particular. It is not necessary to decide immediately after your consultation. If you’re unsure, don’t hesitate to talk to multiple bankruptcy lawyers.
Safeguard your home. Filing for bankruptcy does not guarantee that you will lose your house. You can still keep your home, it just depends on your specific situation and the value of your home. If you’re not sure, however, you can always study the particular homestead exemption regulations. You will learn everything you need to know.
As you can see by now, many people find themselves pondering whether or not to file bankruptcy. However, you are in a better position to do so than they are, because you’ve read this article. To make filing bankruptcy easier, use the advice from this article.