Keeping Your Head Above Water When Bankruptcy Is The Option
You can become really afraid of the IRS when you think you might have to worry about repossession of valuables. You can stop calls from debt collectors and resolve your financial issues if you consider filing for bankruptcy. The following article contains advice to assist you in dealing with the process.
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Do not pay your taxes with credit cards that will be canceled when you file for bankruptcy. In many areas of the country, this debt will not be dischargeable, and you could be left owing a significant amount to the IRS. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. It is pointless to use credit cards if they can be discharged.
You should not have to pay for a consultation with a bankruptcy attorney. Make sure you ask lots of questions. Most attorneys offer free consultations, so meet with a number of them before you retain one. Do not make any final decisions until every question you have has been answered. Take your time before you decide to file after you meet with your lawyer. This offers you the opportunity to speak with other attorneys.
Before you file, make sure you understand current bankruptcy laws. Bankruptcy laws are in constant flux, so just because you knew the law last year doesn't mean that the laws will be the same this year. If you are not sure about the current laws all you have to do is look into what laws have been passed.
It is possible to keep your home. Bankruptcy doesn't always mean you'll lose your home. It is entirely possible that you will be able to keep your home. This is dependent upon the your home's value and whether or not you have taken a second mortgage. Check to see if you pass the requirements necessary to file for a homestead exemption.
Before declaring bankruptcy, be sure you've weighed other options. One example would be that a consumer credit program for counseling if you have small debts. You should also try negotiating a payment plan with your creditors; make sure you get a written agreement of the new payment plans.
If you have fears that you will lose your car, ask your lawyer about the possibility of lowering your car payments. Chapter seven bankruptcy often provides for the lowering of payments. If you meet the criteria specific to your state, it may be a good option to consider.
When you are going through bankruptcy proceedings, it is sure to cause a great deal of stress. Make sure that you hire an experience lawyer to get your bankruptcy done properly. Do not choose your attorney based solely on price. The cheapest attorney may not be the best, but the most expensive may not be the best either. Make sure people who have experienced bankruptcy give your referrals. It is even possible to watch a court hearing in order to see how well an attorney handles a case.
Before filing for bankruptcy, learn your rights. Some debt collectors like to say that you cannot file for bankruptcy on these debts. Only a few debts, including child support and tax liens, are ineligible for bankruptcy. If a collector tells you your debt won't be discharged in your bankruptcy and you know that it will, report the collector to the attorney general's office in your state.
Although bankruptcy is an available option, it is best you look for alternative solutions first. Also keep in mind many debt counselling companies are scams that can get you further into debt. Keep the advice from this piece in mind to help you make smart financial decisions.