Any situation leading to bankruptcy may not be happy, but your life can improve afterward. Bankruptcy is all about giving you a fresh start. Keep reading for how you can make bankruptcy a second chance instead of financial doom.
Generally bankruptcy is filed when a person is facing insurmountable debt. If you’re in this situation, learn about the laws where you live. Bankruptcy laws vary from state to state. For instance, in some states you can keep your home and car, while other states prohibit this. Do you research about legal ins and outs in your state before you begin the bankruptcy process.
Credit Card
Don’t use credit cards to pay your taxes if you’re going 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 main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. Thus, it doesn’t make sense to use a credit card when it is going to be discharged when you file for bankruptcy.
Never shirk on the truth in your petition for bankruptcy. Withholding or lying about certain information can seriously worsen your financial situation. It could lead to being unable to file for bankruptcy or even legal trouble.
After you have declared bankruptcy, you may have a hard time being approved for unsecured credit. If that’s the case, it is beneficial to apply for one or even two secured cards. They offer you the chance to demonstrate the seriousness with which you now take your financial obligations. In time, it may be possible for you to obtain unsecured cards.
Rather than checking online, try to get recommendations from friends or family about a suitable bankruptcy attorney. There are way too many people ready to take advantage of financially-strapped individuals, so you must ascertain that your attorney can be trusted.
Keep at it! You may be able to regain property like electronics, jewelry, or a car if they’ve been repossessed by filing for bankruptcy. If you have property repossessed less than ninety days prior to filing your bankruptcy, you may be able to get it back. Interview and research attorneys before choosing one to help you with your bankruptcy.
Educate yourself about state bankruptcy laws and possible outcomes before filing your petition. This area of law is in constant flux and it is imperative that you know where the law stands at the time you file for your bankruptcy. Your state’s legislative offices or website will have up-to-date information about these changes.
Many bankruptcy attorneys offer the first consultation with no charge, so consult with several before deciding on one. Make sure that you meet with an actual lawyer and not an assistant or paralegal, as these people are not allowed to provide legal advice. Interviewing multiple attorneys is a good way to find the best fit.
It is important to understand clearly the benefits of a Chapter 7 or 13 bankruptcy. By researching each type, you can begin to understand which method is right for you. If you’re really not sure how this all works after your research, meet with your lawyer and ask them prior to making a decision.
Chapter 13
Learn what you can about Chapter 13 bankruptcies. If you posses a regular source when it comes to income, and you have less than $250,000 of unsecured debt, you could file using Chapter 13 bankruptcy. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. This repayment period usually lasts from three to five years. If you make your payments faithfully during that time, any remaining unsecured debt will be eliminated. However, if you were to miss a payment, the court would dismiss your case right away.
Judging from the information contained within the article alone, you can now see that there are ways to get out from under the piling debt. Even though that is the case, you should not allow it to depress you in any way. Bankruptcy may well represent the point where you turn your life around, and you can handle it better by making use of the suggestions this article has provided.
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