If you are deeply in debt and considering bankruptcy, take heart. On the Internet lives plenty of information on how you can avoid bankruptcy. Continue on for some excellent tips that will help you avoid filing for bankruptcy.
You can find a wealth of information concerning personal bankruptcy by searching for websites which offer information about it. The United States Department of Justice and National Association for Consumer Bankruptcy Attorneys provide excellent information. Knowing is half the battle, after all, and these websites are the first step in learning what you need to know to make your bankruptcy smooth and stress-free.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. In most states, this debt won’t be discharged, and you could end up owing the IRS a whole lot more. Generally speaking, debt incurred to pay taxes and the tax bills themselves are treated the same in a bankruptcy. There isn’t any reason to use a credit card to pay the tax bill since the bill can be discharged anyway.
Credit History
Be sure you’re doing what’s right before you file for bankruptcy. Look into credit counseling to see if it could help you work out of your debt without bankruptcy. 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.
As bankruptcy appears on the horizon, don’t take your savings or retirement accounts to try to pay off all your bills. Avoid touching your retirement accounts whenever possible. Though you may need to use a bit of your savings, try hard to maintain some of your reserves so that you have some degree of flexibility going forward.
Be aware that getting unsecured credit is going to be tough once you’ve gone through bankruptcy. If that is the case, you should try applying for one, or two secured cards. If you pay what you owe back promptly at all times, you can show that you are taking steps to be responsible about your payments and credit rating. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
You are going to get found out and get in trouble if you don’t disclose all your assets, so be totally honest from the beginning. Penalties may include fines, imprisonment or denial of the filing. Do not leave anything out and come up with smart plan to manage the situation you are dealing with.
Safeguard your home. You don’t have to lose your home just because you are filing for bankruptcy. It depends what your home value is and if there is a second mortgage, as all this stuff comes into play when determining if you can keep the home. It can be worthwhile to understand the homestead exemption law to see if you qualify to keep living in your home under the financial threshold requirements.
Interest Rates
Consider all options before filing for bankruptcy. Instead of rushing into bankruptcy, a good idea is too speak with an attorney who may be able to get your interest rates reduced or help get you on a debt repayment program. You can apply for a modification of your mortgage if your home is going into foreclosure. This type of plan allows your lender to work with you eliminating charges, extending your loan, and lowering interest rates to help you pay back the loan without drowning in debt. When all is said and done the creditors just want their money, and more often than not will work with you on a repayment plan.
If you’re concerned about the details of keeping your car, try to ask your attorney about details regarding lowering your monthly payments. A lot of the time, your payments may be lowered due to Chapter 7 bankruptcy. You need to have bought your car 910 days before you file, have a loan with high interest and you’re also going to need a good work history.
Always have a plan for your finances. The more time you can obtain for yourself, the better off you will be. Just be sure that you’re making the right decisions in preventing from filing bankruptcy. So get to it and devise a plan so that you do not have to file for bankruptcy.
This is a limited-time offer. We are not able to guarantee availability if you wait!
