Filing for bankruptcy must not be taken lightly. Read through the information in this article and use it to help you make an informed decision. Then, you can make a decision based on what you learn.
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. Most places will not consider the debt dischargeable, meaning you will have to pay the IRS a lot of money. If the tax can be discharged, so can the debt. This means using a credit card is not necessary, when it will just be discharged.
Always be honest with the information you give about your finances. You may be tempted to try to hide income and personal assets from discovery, but doing so often leads to major complications, monetary penalties and the possibility that your case will be thrown out of court.
After a bankruptcy, you may not be able to receive any credit cards. Look into getting a secured credit card in order to get back on your feet with building credit. By doing this, you will be letting people know that you want to fix your credit score. Then, in time, it may be possible for you to obtain an unsecured credit card.
Check into less drastic solutions prior to declaring bankruptcy. Those with smaller debts may find use in a program for consumer credit counseling. You can also talk to creditors and ask them to lower payments, but be sure to get any debt agreements in writing.
Many bankruptcy attorneys offer the first consultation with no charge, so consult with several before deciding on one. Meet with the actual lawyer, not a paralegal or assistant, as they’re not allowed to give out legal advice. Be sure to check out a number of lawyers so that you will find one who is just right for you.
If you’re unsure, then you need to learn what a Chapter 7 bankruptcy can do for you, as opposed to what Chapter 13 does. Research them online to see the positive and negative aspects of each one. Once you have done your own research, be sure to review your findings with your lawyer, who is the expert. This way, you can be sure of making a well informed choice.
If your income exceeds your obligations, you should not seek bankruptcy protection. The cost to your credit history far outweighs the simplicity of the easy-out bankruptcy. This is a hard pill to swallow for many.
Know your rights when filing for bankruptcy. Some debt collectors like to say that you cannot file for bankruptcy on these debts. There are very few debts, such as child support or student loan debt, that can’t be bankrupted. If you are unsure about specific types of debt, check the bankruptcy laws in your state or consult an attorney.
Do not forget to list each and every debt you have. If you do not complete your financial profile your case could be delayed or dismissed. No matter how insignificant a sum seems, include it in the documentation. This includes any jobs you have on the side, any vehicles you have and any outstanding loans.
As you are heading towards a bankruptcy filing, don’t be tempted to run up cash advances on your credit cards in the belief they will be erased in the legal proceedings. That is considered fraudulent behavior, and you can still have to pay the credit card back, bankruptcy or no.
Lots of individuals who previously filed bankruptcy vow to shun the use of credit cards or lines of credit in the future. However, this is not a good idea because it is desirable to heal your credit rating. If you never work on rebuilding your credit after a bankruptcy, you may not be able to qualify for a car loan or mortgage. Start with just one card in order to move your credit in the direction you want it to go.
Filing for personal bankruptcy is a decision you need to make after doing some research. Several steps must be completed, and completed accurately. When you implement the suggestions in this article, you can feel confident that you have covered all the bases with regard to bankruptcy filing.
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