If you are thinking about filing for bankruptcy, research all your options before making an informed decision. Read the suggestions below to learn what you should expect, and the steps you will need to take as you think through this decision. Then, you can make a decision based on what you learn.
A lot of people find themselves needing to file bankruptcy when they are unable to pay their bills. When you are faced with this issue, begin to familiarize yourself with your state’s laws. Bankruptcy laws vary from state to state. Some states may protect you home, and some may not. Do not file before learning about the bankruptcy laws in your state.
Be certain you understand all you can about bankruptcy by researching reputable sites that offer good information. You can learn a lot on the U.S. Department of Justice, NACBA, and American Bankruptcy Institute websites are all great places to go for up-to-date information. The more you know, the better equipped you’ll be to make the wise decisions needed for a successful bankruptcy.
Credit Card
Do not try to get clever by paying your taxes via credit card before you declare bankruptcy in an effort to dodge your tax burden. Most of the time, you cannot discharge this debt. As a result, you will owe the IRS a lot of money. Generally speaking, debt incurred to pay taxes and the tax bills themselves are treated the same in a bankruptcy. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.
Make sure you keep reminding your attorney about any important details in your case. Don’t assume that they will recall every detail that you go over with them without a friendly reminder. This is your future in their hands, so don’t be scared to mention it.
After filing for bankruptcy, you could have trouble acquiring unsecured credit. If that’s the case, it is beneficial to apply for one or even two secured cards. This at least shows you are making an honest attempt at reestablishing your credit worthiness. When you have done well with secured cards for a while, you should be able to obtain an unsecured credit card.
Learn all the latest laws before you file bankruptcy. Bankruptcy laws are in constant flux, so just because you knew the law last year doesn’t mean that the laws will be the same this year. Your state’s website should have the information that you need.
It is possible to keep your home. Bankruptcy filings don’t necessarily have to end in the loss of your home. If your home value has gone down, or if there’s a second mortgage, you might be able to keep it. Otherwise, try looking into house exemptions that may let you remain in the home if you meet certain financial threshold requirements.
Investigate your other alternatives before you decide you have to go with bankruptcy. You might be better off consolidating your debt or availing yourself of some other remedy. Filing a claim can take a long time and cause much stress. Your credit will be impacted for many years. Therefore, you must make sure that there is no other option that you could take before you file for bankruptcy.
After reading the previous article, it is obvious that bankruptcy is not something that takes place on its own. Bankruptcy is complex and requires you to think carefully. The tips you have read here were designed to give you an advantage when filing. By using them, you can sure that you’re doing everything by the book and that you won’t be caught by surprise.
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