Filing for bankruptcy is quite a simple process. There are different chapters of bankruptcy, and your personal financial situation will dictate which type you should choose. This article has information that can help you learn more about personal bankruptcy.
Be certain you understand all you can about bankruptcy by using online resources. Department of Justice and National Association for Consumer Bankruptcy Institute are both sites that provide free advice.
Don’t use credit card to pay off your taxes if you’re going to file bankruptcy. In many parts of the country, this debt will not be dischargeable, and you could end up owing the IRS a whole lot more. This means using a credit card is not necessary, since bankruptcy will discharge it.
Avoid ever touching your retirement funds until you have no other choice. Although it is quite normal to use some of your savings, you should not use up all of it right now and jeopardize the financial security of your future.
Always be honest and forthright when it comes to your finances.
Don’t hesitate to give your lawyer about important aspects of your case. Don’t assume that he will remember something from a month ago; tell him weeks ago. This is your bankruptcy case, so don’t be scared to mention it.
You may still have trouble with getting unsecured credit after a bankruptcy.If you are in this situation, instead you should turn your attention to secured credit cards. This will show people that you are making a good faith effort to repair your credit record back in order. If you do well with a secured card and make strides to repair your credit, you’ll eventually find that companies will start offering you unsecured credit.
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 a number of companies who may take advantage of your situation, and it’s important to be sure your bankruptcy can go smoothly; take your time and choose someone you can trust.
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 talk to a few before making your decision. Only make a lawyer if you feel like your concerns and questions were answered. You do not have to give them your decision right away. This allows you extra time to speak with numerous lawyers.
Be certain that you know how Chapter 7 and Chapter 13 differ. Chapter 7 is the elimination of all of your debt. All the things that tie you owe money to will go away. Chapter 13 bankruptcy allows for a payment plan that takes 60 months to work with until the debts go away.
Now you know why bankruptcy filing is a type of decision that needs to be carefully thought out before being pursued. With your finances in turmoil, seek a reputable attorney who has bankruptcy experience. This will allow you to see this as a true, fresh experience.