The Pros And Cons Of Filing For Personal Bankruptcy

You can become really afraid of the IRS when you think you might have to worry about repossession of valuables. Cease debt collector calls, then figure out your financial situation by thinking about personal bankruptcy. Read on to see how to get through the process.

Think twice if you have struck upon the idea of paying off your taxes by credit card and subsequently filing for personal bankruptcy. Credit card debt is handled charge by charge during bankruptcy, and in most states, tax debt cannot be discharged through bankruptcy. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. Because of this, transferring the debt to your credit card is pointless.

It should go without saying, but refrain from lying in your bankruptcy filings. Do not try to shield some assets or income from your creditors. This can get you in serious trouble and prevent your bankruptcy petition altogether.

Don’t throw in the towel. If you’ve had collateral, such as a car, electronics, or jewelry repossessed for non-payment, you might be able to recover the property when you file for bankruptcy. Any property repossessed within 90 days before filing bankruptcy, may be able to be returned to you. A qualified bankruptcy attorney can walk you through the petition process.

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. Free consultations are standard practice among bankruptcy lawyers, so interview multiple candidates before making a final decision. Make a decision when all your concerns and questions have been addressed well by one lawyer in particular. You don’t need to decide what to do right away. This will give you extra time to interview several attorneys.

Be sure to hire an attorney before you embark upon filing for personal bankruptcy. Personal bankruptcy is quite complex, and it is entirely possible that you will not be able to familiarize yourself with all the laws and processes. A bankruptcy attorney can help yo,u and make certain you can do things the right way.

Be sure you know what the difference between Chapter 13 and Chapter 7 bankruptcy is. Go to a reputable website and research the benefits and detriments of each type of bankruptcy. If the information you read is unclear to you, take the time to go over the specifics with your lawyer before making a decision on which type you will want to file.

Although personal bankruptcy remains an option, look into other avenues before making the decision to pursue it. Keep in mind that many scam debt-consolidation services have sprung up since the increase in bankruptcies, so do your homework before choosing one. Keep the advice you read in mind so that you’re able to make smart choices and stay out of debt in the future.

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