Debt is something a lot of people have to deal with on a daily basis. Filing chapter 7 or 11 can be the last option for many people. If you find yourself in these circumstances, you might want to think about filing for personal bankruptcy. Continue reading to learn more about whether you need to file for bankruptcy or not.
Do not think bankruptcy is the answer to getting rid of taxes you owe. Some filers pay their taxes due with a credit card and then file for bankruptcy. By moving the balance to a card, they believe they can get out of paying the taxes owed. Unfortunately, you’ll just end up having to pay your credit card balance plus interest.
When you feel certain that you must file for personal bankruptcy, refrain from squandering your life savings to pay off unsecured debt. Leave your retirement accounts untouched unless there is absolutely no other alternative. Although it is quite normal to use some of your savings, ensure that you leave enough in your account for emergencies.
If you make more money than you need to pay your bills, you should not file for personal bankruptcy. Although you may see bankruptcy as a free pass to eliminate your debt, if you can slowly whittle away at your debt with your income, it will be much better than killing your credit score with a bankruptcy filing.
Don’t feel bad if you need to remind your attorney about any specifics of your case. Lawyers are people too, and sometimes they forget important information and need to be reminded. All information submitted to the court with your signature needs to be double checked.
Review local bankruptcy attorneys, and choose one that has an excellent reputation. After nailing one down, find out if you can have a free consultation. If it is, get your financial documents together and go visit the lawyer. They can give you details on the process.
If you are filing for bankruptcy, it is imperative that you have a good understanding of your rights. Some bill collectors will tell you that your debts can’t be bankrupted. There are only three main classes of debts that are non-dischargable: taxes, child support and student loans. If a debt collector tells you this false information, seek the advice of your bankruptcy attorney. You may also want to report the bill collector to the attorney general’s office.
You should now understand that there is more than one path to take when it comes to bankruptcy. Don’t let the situation overwhelm you. Look at bankruptcy as a way to begin again
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