Filing for bankruptcy is not a fun thing to do. Bankruptcy is a touchy subject, and people often don’t want to mention it when someone asks about their finances. Take heart, whether you choose to file bankruptcy or not, there are options available to help you get through your financial difficulties.
Do not attempt to pay your taxes with your credit cards and subsequently file for bankruptcy. Credit card debt is handled charge by charge during bankruptcy, and in most states, tax debt cannot be discharged through bankruptcy. Keep in mind that if the tax debt is eligible to be discharged, then the credit card debt is also dischargeable. Therefore, you should not pull your credit card out for purchases if it is just going to be discharged during the bankruptcy.
There is hope! Once bankruptcy has been filed, you may be able to regain possession of items such as electronic goods or cars that were taken away from you. If your property has been repossessed less than 90 days prior to your bankruptcy filing, there is a good chance you can get it back. A qualified bankruptcy attorney can walk you through the petition process.
When a bankruptcy is imminent, retain a lawyer immediately. There are many different aspects to filing bankruptcy, and you may not understand everything there is to know. A personal bankruptcy attorney can help and guide you along through the bankruptcy process.
Bankruptcy Laws
Before you file, make sure you understand current bankruptcy laws. Laws are ever-evolving. You must stay current with bankruptcy laws if you want to be successful in your challenge. Your state’s legislative offices or website will have up-to-date information about these changes.
There are two types of bankruptcy filing, Chapter 7 and Chapter 13 so make sure you know the differences. Chapter 7 bankruptcy completely wipes out your debt. All of your financial ties to the people you owe money to will disappear. But, with Chapter 13, you will be in repayment plan for about 5 years prior to any debts you have being totally dissolved. When choosing the type of personal bankruptcy that is correct for you, it is very important that you know the differences.
Safeguard your home. Just because you’re going bankrupt doesn’t mean that you also have to be homeless! Check your home’s current value to see if it has gained equity and get your first and second mortgage papers together. You can also investigate your state’s homestead exemption, an option that might enable you to keep your home if certain financial requirements are met.
Before filing for bankruptcy ensure that the need is there. You might be better off consolidating your debt or availing yourself of some other remedy. Bankruptcy is not a simple, breezy course of action that should be taken lightly. Having a bankruptcy on your record will hinder your ability to get credit in the future. You have to make certain that you absolutely have no other choice.
If you are making more money than you owe, bankruptcy should not even be an option. It can seem like bankruptcy can be an easy way to avoid paying back your debts, however it leaves a serious mark in your credit report that can last between seven and ten years.
Don’t forget to enjoy your life once your finances get fixed. It can be several months between the initial filing and the final discharge of debts. This stress may lead to something worse like depression, so do what you can to fight that from happening. Life is going to get better once you get through this.
If you have fears that you will lose your car, ask your lawyer about the possibility of lowering your car payments. Many times, payments can be lowered through Chapter 7 bankruptcy. 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.
As you can tell, you do not have to let bankruptcy take control of you. The information contained in this article can help you to avoid having to file for bankruptcy. You can turn your life around and protect your financial position if you make use of wise bankruptcy advice like the suggestions presented above.
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