Nobody expects that they would ever file for bankruptcy. Changing circumstances often creates a situation in which there’s no better choice, therefore, knowing how to properly deal with it the right way is important. If you discover that you are faced with bankruptcy, you can help yourself with the knowledge provided below.
If you are going through a bankruptcy do not fall victim to guilt and pay off debts that you do not need to pay. You shouldn’t dip into your IRA or 401(k) unless there is nothing else you can do. Dipping into savings may need to happen, just don’t totally wipe it out, or you might not have much financial security later.
Do not even think about paying your taxes with credit and petitioning for bankruptcy right after. In some places the debt can not be discharged, and you may still need to pay the IRS afterward. The rule here is that if you can get the tax discharged then you can get the debt discharged. So as you can see, in this situation there is no need to use the card when the debt will be discharged when you file for bankruptcy.
Don’t ever pay a bankruptcy attorney for a consultation, and ask a lot of questions. Since most attorneys offer free consultations, meet with a few attorneys before deciding who to hire. Don’t hire an attorney who fails to address all your concerns and questions. It is not necessary to come to a decision immediately following the meeting. Take your time, and schedule consultations with more than one lawyer.
Try to find a bankruptcy attorney who is personally recommended, rather than off the Internet, or out of the yellow pages. There are way too many people ready to take advantage of financially-strapped individuals, so you must ascertain that your attorney can be trusted.
If you are about to file for bankruptcy, you have probably been through tough times lately. However, the story that gets written after bankruptcy does not have to be depressing too. Using the advice you have found here, bankruptcy can be the beginning of a new, exciting chapter in your life!
