Just thinking about bankruptcy is more than enough to strike substantial fear into anyone’s heart. Increasing debt, coupled with the inability to support their families is a real nightmare for many people. Does the thought of this scare you? Perhaps you are going through it right now, and the advice found here can help your situation.
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. Most states do not look at this debt as chargeable, and you could end up owing money to the IRS. Should the tax be dischargeable, the debt is often dischargeable as well. So, there is no reason to use your credit card if it will be discharged in the bankruptcy.
After filing for bankruptcy, you may have difficulty getting approved for unsecured credit. Look into getting a secured credit card in order to get back on your feet with building credit. This will demonstrate that you’re seriously trying to restore your credit. If you do well with a secured card and make strides to repair your credit, you will ultimately be able to receive an unsecured card.
Familiarize yourself with the bankruptcy code before you file. Bankruptcy law evolves constantly, and it’s important to stay up-to-date to ensure that you file properly. Your state will have a website to check, or a number you can call, to learn the latest changes in the bankruptcy laws.
Chapter 7
Remember to understand the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Should you choose Chapter 7, your total debt load will be erased. All creditor relationships will be severed. Chapter 13, on the other hand, involves a five year payment period before any remaining debts are cancelled. It’s imperative that you know the differences among the various categories of bankruptcy so that you are able to choose the wisest one for you.
Many bankruptcy attorneys offer the first consultation with no charge, so consult with several before deciding on one. Always ensure that the person you meet with is a real lawyer, not a legal assistant or paralegal. These people can’t give legal advice. Be sure to check out a number of lawyers so that you will find one who is just right for you.
Don’t forget to enjoy your life once your finances get fixed. Bankruptcy is a stressful process: you will have to go over your bad financial decisions and perhaps feel ashamed about your decision. Stress easily leads to depression, if you are not maintaining control of your emotions. Life will surely get better after you finish this process.
Don’t file for bankruptcy without knowing your rights. Many creditors or bill collectors might tell you your debts cannot be included in a bankruptcy. You should know that only a few debts cannot be erased, including student loans and child support. If a bill collector attempts to say their bill cannot be discharged, look it up. If they are wrong, report them.
Prior to filing for bankruptcy, tell yourself that you cannot use the word “shame”. It is possible for those going through the bankruptcy process to feel unworthy, guilty or ashamed. Although dealing with a bankruptcy is stressful, try to focus on the positive. Keep a positive state of mind to deal with your tough financial situation.
Create a list of all of your finances before filing for bankruptcy. If you don’t do this, your file could be delayed or dismissed. Even small amounts of money contribute to your overall financial picture, so do not exclude them. When it comes to the types of things you might not be thinking about adding, just think about any automobiles you have, any money under the table you’re making, etc.
Personal Bankruptcy
Make sure you know the bankruptcy laws before filing your petition. There are several pitfalls with personal bankruptcy that can make your case harder to handle. It is even possible to make the sorts of errors that can cause your case to be dismissed. Before continuing, research personal bankruptcy. This will help your process go smoother.
Know that bankruptcy can be much better for your finances than missing payments or making late payments on debts. Yes, the bankruptcy will stick around for a whole ten years, but the clean slate you get from filing will help you get back on the right track quickly. A fresh start is a great benefit of bankruptcy.
Typically, people who have faced bankruptcy swear off credit cards. This is not a smart move, since using credit wisely allows you to build a solid credit history. If you aren’t using any credit, then it will be very difficult to get your credit score high enough to be able to purchase things like a car or home in the future. Begin with a credit card that has the very low limit and handle it extremely responsibly to begin healing your credit rating.
It is not unusual for people to be worried about bankruptcy; the process is nerve-wracking. Now that you have read this article, you now never again have to be scared of bankruptcy. Apply this advice to improve your situation for yourself and any loves ones.
This is a limited-time offer. We are not able to guarantee availability if you wait!
