The Pros And Cons Of Filing For Personal Bankruptcy
When the IRS comes knocking at the door, it’s hard to tell what they’re going to take. Unfortunately, you may not have enough to give. This is where bankruptcy can help you out. Although bankruptcy tends to destroy a person’s credit, it’s occasionally the only available option. The following article will provide some basic information about filing for bankruptcy and its possible consequences.
Filing for bankruptcy is something many people are forced to do when there debts become too much of a burden, and they can no longer afford to pay them. If this is the case for you, you should begin to investigate the legislation in your state. Different states use different laws when it comes to bankruptcy. Some states may protect you home, and some may not. Do not file before learning about the bankruptcy laws in your state.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. In most states, this is not dischargeable debt. Therefore, you will end up owing the IRS a lot of money. Should the tax be dischargeable, the debt is often dischargeable as well. So, in short, do not use your credit cards to pay off debts right before you file for bankruptcy.
Before you proceed with your personal bankruptcy case, review your decisions to be certain that the choice you are making is the right. There are plenty of other options open to you, like consumer credit counseling. Since your credit history will forever note the bankruptcy, you want to make sure that you have tried everything else before you take an action such as this, in order to minimize the effect it will have with regard to your credit history.
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. Most attorneys offer free consultations, so meet with a number of them before you retain one. Choose an attorney who is experienced, educated and well-versed in bankruptcy laws. Take your time choosing the right attorney to assist in your bankruptcy. This will give you extra time to interview several attorneys.
Hopefully, you now understand that there are many options open to you when you are giving a personal bankruptcy filing serious thought. If you go into the process armed with knowledge and confidence, you can wipe away your debt and give yourself a fresh start.