It’s scary to have a ton of debt hanging over your head. Once you realize how much in debt you are, it can make you lose your focus on everything else in life. The problem now is that it becomes much tougher to fix. You should read ahead for great tips on how to face and handle a bankruptcy, when your debt is insurmountable.
Do not try to get clever by paying your taxes via credit card before you declare bankruptcy in an effort to dodge your tax burden. In most states, this is not dischargeable debt. Therefore, you will end up owing the IRS a lot of money. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. So it does not help you to put the tax bill on your charge card if you know the debt will be discharged anyway.
Don’t hesitate to give your attorney a heads-up about something she has missed. Chances are that you may have forgotten to tell them about certain specifics that may be important to your filing. It is in your best interest to speak out. You are in control of the outcome of your bankruptcy.
When filing for bankruptcy it is crucial that you are candid and not concealing any liabilities or assets, as it will only show up in the future. The lawyer representing you when you file needs to have full knowledge of your financial situation. Don’t hold anything back and formulate a smart strategy to deal with the reality you are facing.
You should never pay for your first consultation with a bankruptcy attorney. Make the most of this free consultation by asking lots of questions. Nearly all attorneys offer free initial consultations, so you should be able to meet with a few before you make a final hiring decision. Make a choice only if you have received good answers to all the questions and concerns you brought to the table. You need not decide right away. This offers you the opportunity to speak with other attorneys.
It is imperative that you retain an experienced attorney if you are planning to file bankruptcy. Personal bankruptcies are detailed and complex processes, and you may miss something that costs you money. A lawyer that specializes in bankruptcy can make sure you are following the correct procedures in your filing.
Remember that your Chapter 7 filing may affect other people in your life as well. A Chapter 7 bankruptcy will relieve you of your legal responsibility to pay any joint debts. However, creditors can demand co-debtors pay the amount in full.
Create a list of all of your finances before filing for bankruptcy. If you do not do so accurately, your petition could be dismissed, or at the very least delayed. No sum is too small to be included; err on the side of caution and include everything. This may include secondary employments, vehicles you own and loans you still owe money on.
There are often times when you feel that you have very little control over what is happening to you. By following the pointers presented in this article, you will be able to keep your finances under control while proceeding through bankruptcy. Apply the tips you learned from this article into your life.