Before pulling the trigger on bankruptcy, be sure that other solutions aren’t more appropriate for your case. For instance, a consumer credit counseling program may be a better bet if your debts are relatively small. Sometimes you can negotiate a reduced payment, though you must strive to get it all in writing.
If tax time is coming and you are afraid of what you owe, bankruptcy is not the option. It is not unheard of for individuals to pay their tax bill with their credit card and subsequently file for bankruptcy protection. This is done assuming that filers can cheat the system, since the balance can be found on credit cards. However, this is already expressly forbidden in bankruptcy law, and you will be stuck with the taxes and the interest that is accruing on the credit card. Write down every debt you have. After this, you can file bankruptcy, so make sure this document is accurate. Remember to go through all of your records and try to determine the exact amount. It can be difficult or even impossible to discharge your debts if you report them inaccurately; be sure that you double check your figures. One way to improve your credit following a bankruptcy is to start some fresh lines of credit. This is sometimes difficult with bad credit, but secured credit cards are a viable solution. If you get a regular, unsecured card, you may end up paying astronomical interest rates. You will be better able to obtain loans and other forms of credit if you actively rebuild your credit and keep it in good standing.
Many bankruptcy lawyers offer free consultations, so go to several before choosing one. Meet with the actual lawyer, not a paralegal or assistant, as they’re not allowed to give out legal advice. Looking for an attorney will help you find a lawyer you feel good around.