Once the decision to rectify your financial woes with a bankruptcy filing has been made, you still face some important tasks and considerations. You want to take full advantage of this opportunity to have your debts forgiven and start fresh again, so a bit of work before you sign that bankruptcy petition is in order. Read on to learn more about some vital issues to consider before you file.
Have you lived in your state long enough to qualify for homestead exemptions?
When filing for bankruptcy, you can either hire a lawyer for help or do it on your own. People who file without a lawyer typically do this just to save money. Filing alone will be cheaper, because you will not have to pay an attorney for his or her services; however, filing alone can result in some problems. Here are several problems you might encounter if you file alone.
You might file the wrong chapter
Having property tax liens on your house is the typical result of failing to pay the taxes you owe. The state you live in will place a lien on your home shortly after the bill becomes delinquent, and this is something you will have to pay if you decide to sell your house. If you decide to file Chapter 7 bankruptcy, you might not have to pay the bill, though, but this will depend on what happens to your house in the bankruptcy case.