Bankruptcy is a two-sided coin: relief/stress. You do have to sort through all of your finances and interact with a lot of people in the financial part of your life. By contrast, once your bankruptcy is complete, you will have the freedom to rebuild your credit without being hounded by debt collectors. You can make the bankruptcy process easier on yourself by keeping the following tips in mind.
Do not use a credit card to manage your tax issues and then try to file bankruptcy. Credit card debt is handled charge by charge during bankruptcy, and in most states, tax debt cannot be discharged through bankruptcy. The rule here is that if you can get the tax discharged then you can get the debt discharged. Because of this, transferring the debt to your credit card is pointless.
Before you file for bankruptcy, carefully consider if it is the right option for you. Debt advisors are one of the many other avenues you can consider. Be certain that bankruptcy is the only option you have before pursuing this course because bankruptcy is always evident on your financial and credit history.
Don’t hesitate to give your attorney a heads-up about something she has missed. Many times a lawyer may forget a key detail; therefore, it is important to remind your lawyer of any key information. Remember that you’re the boss. You’re paying your lawyer, so you should not be afraid to have your say. After all, the quality of your life hangs in the balance.
After you have declared bankruptcy, you may have a hard time being approved for unsecured credit. If this happens to you, think about applying for a couple of secured credit cards. You can exhibit your desire to rebuild your credit this way. In time, it may be possible for you to obtain unsecured cards.
Do not despair, as it’s not the end of the world. Once bankruptcy has been filed, you may be able to regain possession of items such as electronic goods or cars that were taken away from you. If the items were repossessed less than three months prior to your filing date, you may be able to recover them. Consult with a lawyer who is able to assist you in the filing of your petition.
Find a specialized lawyer if you are thinking about filing for bankruptcy. Bankruptcy is a complex process, and you probably don’t know all the information that is required to navigate it. A bankruptcy attorney can help yo,u and make certain you can do things the right way.
Take advantage of free consultations with lawyers and the ability to sift through and find the right one. Be certain you talk to the lawyer, himself, instead of a paralegal or assistant; those people aren’t allowed to give legal advice. Considering several different lawyers can help find someone to trust.
Understand the differences between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy. Research them online to see the positive and negative aspects of each one. Learning about bankruptcy is not simple, so call a bankruptcy attorney to make an appointment to ask questions.
Chapter 13 Bankruptcy
You could see about filing for Chapter 13 personal bankruptcy. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. Chapter 13 bankruptcy permits you to remain the owner of your properties, while allowing you to repay your debt using a debt consolidation loan. This plan normally lasts from three to five years, in which you’ll be discharged from unsecured debt. Keep in mind that even missing one payment can be enough for your whole case to get dismissed.
If your income exceeds your obligations, you should not seek bankruptcy protection. Although bankruptcy may feel like a simple method of getting out of your large debt, it leaves a permanent mark on your credit history for up to 10 years.
There are good things as well as bad, in regards to filing for bankruptcy. No matter your reason for going through with it, remember that information is essential to the whole process. This article should help you learn more about personal bankruptcy. Use these tips and you’ll see how they make you feel better about dealing with the processs.
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