There are many people who are now in debt levels over their heads. Threats come from collection agencies and other creditors while the bills just keep piling up. If you find yourself in this type of financial trouble, you may want to think about filing for bankruptcy. The information in this article will help you to decide if this is an option for you.
Do not use a credit card to pay income taxes and then file for bankruptcy. Generally speaking, taxes are not a dischargeable debt. The delays caused by this sort of tactic could leave you owing the IRS a great deal in interest and penalties. The rule here is that if you can get the tax discharged then you can get the debt discharged. So, there’s no reason to make use of a credit cards if it will not be discharged in bankruptcy.
Don’t ever pay a bankruptcy attorney for a consultation, and ask a lot of questions. Free consultations are standard practice among bankruptcy lawyers, so interview multiple candidates before making a final decision. Do not make any final decisions until every question you have has been answered. After the consultation, you are not immediately required to come up with a decision. You can take as much time as you need to meet with different lawyers.
There is hope! You might even be able to get back secured property that has been repossessed in the 90 days before filing. Filing for bankruptcy may allow you to regain ownership of recently repossessed property. Speak with your attorney about filing the correct petition to get your property back.
Don’t pay for the consultation with a lawyer who practices bankruptcy law; ask a lot of questions. Most lawyers offer free consultations, so talk to a few before making your decision. Only choose an attorney once all your concerns are answered to your satisfaction. You do not have to give them your decision right after the consultation. You have lots of time for consulting with other lawyers.
If you devise a plan, then you can make the situation much better. If it’s possible to get some more time to pay your bills, take it. Just be sure that you’re making the right decisions in preventing from filing bankruptcy. Once you have resolved your debt problems, you will be ready to start moving forward.
