Many people are quick to judge others badly when they have to declare bankruptcy, yet they are also as quick to change their mind if they are suddenly in that boat. Certain life events can make personal bankruptcy the only viable option available. No matter how you found yourself looking at bankruptcy as an option, continue reading so that you can learn how to move forward.
Credit Cards
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. In a lot of places, the debt cannot be discharged, and you may still owe money to the IRS. One thing that you should remember is that if your tax is dischargable, your debt will also be dischargeable. So, in short, do not use your credit cards to pay off debts right before you file for bankruptcy.
Don’t fear reminding your attorney of any specific details of your case. You cannot expect your lawyer to remember every important detail without some reminder from you. Speak up if something is troubling you, as this is your future we are talking about here.
There is hope! Filing for personal bankruptcy may possibly enable you to reclaim your personal property that have been repossessed, like your car, electronics and jewelry items. Filing for bankruptcy may allow you to regain ownership of recently repossessed property. Speak with your attorney about filing the correct petition to get your property back.
See if there is an alternative you can use before declaring bankruptcy. Those with smaller debts may find use in a program for consumer credit counseling. You may have the ability to negotiate much lower payments, just be sure any debt modifications you agree to are written and that you have a copy.
Find out about lowering the cost of the payment you pay monthly on your car, if you are afraid of losing it. Lower payments can sometimes be structured into a Chapter 7 solution. But, your car has to have been bought at least 910 days before you file. Also, it must come from a high interest loan and you have to have been consistently working.
Before declaring bankruptcy, it is important to know your rights. Some debt collectors like to say that you cannot file for bankruptcy on these debts. There are, indeed, some debts that cannot be bankrupted. Among them are student loans, child support and alimony payments. If you are told differently by a collector, research the information yourself. If you find they are in error, get the name of their company, phone number and any identifying info so you can report it to the attorney general in your area.
Before you decide to file, make yourself aware of the laws about bankruptcy. For instance, for 365 days before filing, no one is able to receive assets from the filer. In addition, it’s unlawful for a filer to acquire more debt on their credit cards before they file.
Know the laws and guidelines about bankruptcy before you formally file. There are many traps in the bankruptcy laws that could trip up your case. Mistakes can also have your case dismissed. Do as much research as possible about bankruptcy before you file. That way, you will have an easier road.
Credit Counseling
There are a lot of things to consider prior to filing for bankruptcy. One option to consider is credit counseling. Various non-profit companies are out there to give you assistance. They can speak with your creditor about getting your payments and interest reduced. The payments you make go to the credit counseling company, and they send that money to your creditors.
It is important to know that you may bet better off filing for bankruptcy than continuing to be in debt. Of course, bankruptcy hurts your credit for up to ten years, but you can begin to re-build your credit immediately. Among the advantages of bankruptcy is that of a clean slate.
Lots of individuals who previously filed bankruptcy vow to shun the use of credit cards or lines of credit in the future. In reality, though, credit cards can be a useful tool for people who are looking to rebuild their credit score after bankruptcy. If you don’t use your credit, you won’t be able to make big purchases on credit in the future. Keep it simple with one card and take a slow approach to rebuilding.
When you file for bankruptcy remember that you are not going to lose all your assets. You will be able to keep personal property. This includes some jewelry, clothing, household furnishing, electronics and more. Depending on where you live and what you’re filing for, you might be able to keep you home and things like you car.
Financial Situation
It is possible to exhaust every possible option to improve your financial situation and still find bankruptcy the only solution. You need not feel guilty about your financial situation if the choices that have put you in it were made by other people. You can find valuable information by reading this article.
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