Being in debt is far from fun, and it is even downright scary at times. It is all too easy to let your debts get out of control and take over your life. When you find yourself in such a position, it can be hard to know what to do. Read on to find tips, insight, and valuable information for clearing your debt and getting a firm grasp on your finances.
You should check with the personal bankruptcy resources available online to educate yourself thoroughly before you begin the process. The United States Department of Justice, American Bankruptcy Institute, along with many other websites can provide you with the information you need. The more knowledge you have, the more you are able to make right decisions and find a new future.
Don’t pay tax requirements with your credit cards with the thought of starting the bankruptcy process afterward, without doing your research first. Credit card debt is handled charge by charge during bankruptcy, and in most states, tax debt cannot be discharged through bankruptcy. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. This makes using a credit care irrelevant, since bankruptcy will discharge it.
Be certain you are making the right choice before you file for bankruptcy. Consider any other options that are available to you, such as consumer credit counseling. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
Check the accuracy of all information before it is filed. It is wrong to assume that your lawyer will remember every word you ever utter! Your case and future are affected by the attorney’s action, so never be afraid to communicate.
Credit Card
It’s not uncommon to learn soon after bankruptcy that you are unable to get an unsecured credit card easily. If this happens to you, think about applying for a couple of secured credit cards. Having a credit card of any type will allow creditors to realize that you’re attempting to work in the right direction to repair your credit. If you pay your secured card off on time, you’ll eventually find that companies will start offering you unsecured credit.
Try to get a bankruptcy lawyer that your friends recommend, as opposed to someone that you find from the Internet or yellow pages. Some companies just want to take advantage of you, so it is important that you have help from someone you trust.
Do some research to find out which assets you could lose by filing for personal bankruptcy. The Bankruptcy Code provides a list of all the different kinds of assets that you can exclude. Make sure to review the list before filing a claim so you know if your valuables will be subject to seizure. Without reading the list, you may be shocked at which possessions can be taken from you.
No good will come of trying to conceal your assets or your liabilities in the bankruptcy process; you want to be scrupulously honest when you declare bankruptcy. When you file make sure whoever is handling the process is fully aware of each and every financial detail. Do not leave anything out and come up with smart plan to manage the situation you are dealing with.
Weigh all of your options before declaring bankruptcy. For example, there are credit counseling services that can help you to deal with smaller amounts of debt. Also, if you just contact your creditors and speak to them plainly and truthfully, the odds are good that you can negotiate a better payment structure that you can afford.
Chapter 7
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Under Chapter 7 type bankruptcy, all debts are forgiven. This includes creditors and your relationship with them will become no longer existent. In a Chapter 13, though, you’ll be put on a payment plan for up to 60 months before being free of your debts. It is worth while to take your time to research both types of bankruptcy to decide which option works best for you, and your financial situation.
Sometimes, financial crises just take place in your life and you do not have the chance to do much about them. The article above has some powerful suggestions to get things back in control and manage the issues you face when filling for bankruptcy. Use this information to make a fresh start!
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