And it goes without saying that whatever brought you to bankruptcy was probably an unhappy experience; nonetheless, when your bankruptcy proceedings are over, you can move on to have a happier life. The bankruptcy laws allow you to have a second chance at building your credit and meeting all your financial responsibilities. Read this article to find out how to use bankruptcy for a chance at financial rebirth.
Don’t pay tax requirements with your credit cards with the thought of starting the bankruptcy process afterward, without doing your research first. You will find few states that discharge this kind of debt. You may also wind up owing a lot of money to the IRS. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. So, in short, do not use your credit cards to pay off debts right before you file for bankruptcy.
Exhaust every other option before making the decision to file for personal bankruptcy. Debt advisors are one of the many other avenues you can consider. Since your credit history will forever note the bankruptcy, you want to make sure that you have tried everything else before you take an action such as this, in order to minimize the effect it will have with regard to your credit history.
You may still have trouble receiving any unsecured credit after a bankruptcy. If this happens to you, think about applying for a couple of secured credit cards. This will show other people that you’re serious when it comes to having your credit record in order. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
Look for a bankruptcy lawyer that comes from a personal recommendation instead of someone random on the Internet or in the yellow pages. Don’t be taken in by some fly-by-night company that exists only to profit from the suffering of others. Check out any lawyer you are considering thoroughly before engaging him or her.
Prior to putting in the bankruptcy paperwork, determine what assets are protected from seizure. There are several assets which are exempt from bankruptcy; therefore, consult the Bankruptcy code. Make sure that you carefully look over this list prior to filing to discover if your valuable assets will be seized. If you fail to go over this list, you may be unpleasantly surprised sometime down the road if any of your most valued items are seized.
Do not despair, as it’s not the end of the world. There may still be way to get repossessed items back after you file for bankruptcy. You may be able to recover repossessed property if the repossession occurred fewer than 90 days ago. Get help from your lawyer to file a petition so you can get your items back.
Chapter 13 Bankruptcy
Consider Chapter 13 bankruptcy. If your source of income is regular and your unsecured debt is less than a quarter million, Chapter 13 bankruptcy is something you are able to file for. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. This lasts for three to five years and after this, your unsecured debt will be discharged. Consider that if you even miss one payment, your case will not be considered by the court.
If you plan on filing bankruptcy, never wait too long. A lot of people ignore their financial problems, thinking they are going to go away; that is a big mistake. All your personal debts will easily go haywire, building and collapsing very quickly. This often leads to foreclosures and garnishments. As soon as you’ve decided that you no longer have a handle on your debts, consult a bankruptcy lawyer to see if bankruptcy is right for you.
Make sure that you disclose every bit of financial information on your bankruptcy petition. Omissions or errors may cause your case to take more time to resolve, or even be rejected entirely. No sum is too small to be included; err on the side of caution and include everything. Financial information should include all income, assets and loans.
Do not take a large cash advance from credit cards prior to filing, knowing that bankruptcy erases all debts. This is against the law and it is fraud. After the bankruptcy process you can be made to pay it all back to the creditor.
Once you decide to file, it is important to act in a more financially responsible manner. You must not doing anything that will raise your current level of indebtedness for several months before filing a bankruptcy petition. Filing bankruptcy should be your first sign that the way you’re living isn’t any good. Now’s the time to get your finances in order so that you can pull your credit out of the gutter. Your most recent behavior should show that you realize the error of your ways and have changed course to become more fiscally responsible.
As said previously, a situation leading to bankruptcy can be upsetting. Yet after bankruptcy, you can be happy again. Try using the tips in this article so you can make bankruptcy into the most positive experience possible.
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