If you are faced with a repossession, the whole process can feel very intimidating. Filing for bankruptcy can help ease your financial burdens and put an end to harassing phone calls from debt collectors. Take a few minutes to go over this article and make good use of the tips presented.
Credit Card
Do not use a credit card to manage your tax issues and then try to file bankruptcy. In a lot of places, the debt cannot be discharged, and you may still owe money to the IRS. Transferring the debt to another medium (e.g. a credit card) won’t magically make a tax debt discharagable, either. So, there is no reason to use your credit card if it will be discharged in the bankruptcy.
If you are truly faced with bankruptcy, avoid blowing your savings or retirement money, trying to pay off debts. You should never touch your retirement accounts, unless you have absolutely no choice. Although it is quite normal to use some of your savings, ensure that you leave enough in your account for emergencies.
Getting unsecured credit post-bankruptcy will likely be difficult. If that is the case, you should try applying for one, or two secured cards. By doing this, you will be letting people know that you want to fix your credit score. Then, in time, it may be possible for you to obtain an unsecured credit card.
Weigh all of your options before declaring bankruptcy. If your debt is relatively low, you may be able to manage it with credit counseling. It may also be possible to get lower payments, but if you do, be sure to obtain records for any consensual debt modifications.
Chapter 7
Be certain to grasp the distinction between Chapter 7 and Chapter 13 bankruptcy cases. Chapter 7, for example, will wipe away every one of your outstanding debts. All happenings with creditors will disappear. A Chapter 13 filing involves a repayment plan, though. Typically, you will make a partial payment against your debts over the next 60 months before the balance of the debts is lifted. It’s important to know what differences come with every type of bankruptcy. This will let you find out what’s best for you.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Research them online to see the positive and negative aspects of each one. Engage your attorney in a conversation about each type, and ask him to answer any questions you may have before deciding which kind is right for you.
Bankruptcy Filing
If you are making more money than you owe, bankruptcy should not even be an option. Remember that the record of your personal bankruptcy filing will be discernible on the report of your credit for as many as 10 years. For this reason, bankruptcy filing should not be taken lightly.
You should never feel shame for needing to file for bankruptcy. A lot of people have a negative opinion of bankruptcy, mostly because they misunderstand this procedure. Feelings such as these are not of value to you and it is possible for them to be psychologically harmful. These difficult financial times can easily take their toll on anyone. One of the best ways to cope with the situation is to maintain a positive attitude.
Make a comprehensive list of all of your financial information before you file for bankruptcy. Forgetting anything can cause a delay, or even a dismissal. Add absolutely everything to your list, including small amounts. Anything, like a job on the side, assets, like cars, and any outstanding loans should be included.
Don’t wait when you’re thinking about filing for bankruptcy and have been for a while. Although it may be very difficult to admit that bankruptcy is the answer for you, it will be much harder to continue spiraling into a debt quagmire. The time to seek out professional advice on bankruptcy is as early as possible. Your financial situation will get complex very quickly, so wise counsel is more valuable the earlier you get it.
It is possible that a bankruptcy might actually be smarter over the long term than struggling month to month with consistently late or missing payments. While bankruptcy will show up in you credit file for the next 10 years, you can begin the process of making your credit situation better right away. The best aspect of bankruptcy is the fact you can have a new start.
When you file for bankruptcy, it doesn’t mean that you will lose your assets. Personal belongings that fall under private property are something that you can keep. You can keep your clothes, your furniture, your jewelery and your primary vehicle for instance. Depending on where you live and what you’re filing for, you might be able to keep you home and things like you car.
Prior to going through with a bankruptcy filing, be sure to list out every one of your expenditures and debts. This will be your basis in filing for bankruptcy, so see to it that you write down all of the debts you’re aware of. Include your exact balance on each account. Remember to take your time here. Rushing through will ensure that some numbers somewhere will be mixed up and then the process will blow up in your face.
Although personal bankruptcy remains an option, look into other avenues before making the decision to pursue it. Keep in mind that many scam debt-consolidation services have sprung up since the increase in bankruptcies, so do your homework before choosing one. Keep these tips in mind to make the best choices for your financial future and to avoid worsening your debt.
This is a limited-time offer. We are not able to guarantee availability if you wait!
