Filing for bankruptcy can relieve you of one kind of financial stress, but it provides you with new stresses, too. On the one hand, you have to go through all your finances and deal with many people going through your financial life. On the other, you get to enjoy the peace that comes when the bill collectors stop calling you. Continue reading to learn what you need to know to make your bankruptcy almost painless.
Be certain to gain a thorough understanding of personal bankruptcy by using online resources. Many sites, including the U.S. Run a quick Internet search to find out all the different agencies you should be contacting or visiting via the web to find out what you can. Knowing as much as possible about bankruptcy gives you an advantage and will help you make the best decision possible.
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. Keep in mind that if the tax debt is eligible to be discharged, then the credit card debt is also dischargeable. Thus, it doesn’t make sense to use a credit card when it is going to be discharged when you file for bankruptcy.
You should not have to pay for a consultation with a bankruptcy attorney. Make sure you ask lots of questions. When you arrive at a consultation ask plenty of questions. You should also seek free consultations from several attorneys prior to choosing one. Only choose a lawyer if you feel like your questions were answered. You need not decide right away. You could even go to different lawyers for advice.
Weigh all of your options before declaring bankruptcy. For example, consumer credit counseling programs can help you by renegotiating your debts with your creditors into payments that you can afford. You might also be able to negotiate lower payments yourself, but make sure that you get written records of any debt modifications to which you agree.
There are pros and cons to filing bankruptcy. Remember that whatever reason you have for taking this step, education is your best weapon during the process. The tips contained in this article will make filing for bankruptcy easier to handle. Utilize these tips and let them guide you towards a stress-free financial future.
