Bankruptcy: Is It Right For You?

Bankruptcy installs such negative feelings into all those that consider it. From fears of growing debt to worrying that they’ll no longer be able to provide for their families, people have good reasons to be scared. If it frightens you, or you live this way, the information in this article will be useful for you.

Think twice if you have struck upon the idea of paying off your taxes by credit card and subsequently filing for personal bankruptcy. The fact is that the credit card debt will be ineligible for discharge, and your tax debt may increase. In most cases, you can use the adage that “a dischargeable tax is a dischargeable debt.” It is pointless to use credit cards if they can be discharged.

It is a good idea for you to hire a bankruptcy to handle your bankruptcy process. Bankruptcy is a complex process, and you probably don’t know all the information that is required to navigate it. A personal bankruptcy lawyer will be able to help you and ensure you are doing things the proper way.

You may have heard bankruptcy referred to differently, either as Chapter 7 or Chapter 13. Learn the differences between the two before filing. Chapter 7 is the best option to erase your debts for good. All creditor relationships will be severed. Chapter 13 bankruptcy allows for a five year repayment plan to eliminate all your debts. It is worth while to take your time to research both types of bankruptcy to decide which option works best for you, and your financial situation.

Many bankruptcy lawyers offer free consultations, so go to several before choosing one. Make sure that you meet with an actual lawyer and not an assistant or paralegal, as these people are not allowed to provide legal advice. Seeking out different attorneys is all part of the process until you find someone that you can trust.

As you read in the beginning of this article, bankruptcy is not something anyone looks forward to. The initial process might be difficult and draining, but there’s something special waiting on the other side. Follow the advice from this article, and use personal bankruptcy to get your fresh start.