Most people never expect to be in the position of facing bankruptcy. Sometimes there is simply no viable alternative in a given financial situation. This is when it’s important to understand the basics of bankruptcy. If this has happened to you, then use the advice in this article to move forward with your life.
Do not consider paying off tax debt with credit cards and filing for bankruptcy afterward. It won’t work. The fact is that the credit card debt will be ineligible for discharge, and your tax debt may increase. In most cases, you can use the adage that “a dischargeable tax is a dischargeable debt.” There isn’t any reason to use a credit card to pay the tax bill since the bill can be discharged anyway.
Make sure you’ve exhausted all other options prior to declaring bankruptcy. You have better options. For example, you could try credit counseling. Bankruptcy is a serious negative on your credit history so make sure you have no other options before you file. It is important to keep your credit history as positive as possible.
Unsecured Credit
Getting unsecured credit post-bankruptcy will likely be difficult. If so, apply for a secured credit card. When you do this, it shows your determination to fix your credit history. If you pay your secured card off on time, you’ll eventually find that companies will start offering you unsecured credit.
Most bankruptcy lawyers offer a free consultation, so meet with several before you decide on one. It is important to meet with the actual attorney, not the attorney’s assistant or paralegal; those people are not permitted to give legal advice Be sure to check out a number of lawyers so that you will find one who is just right for you.
Do what you can to keep your home. Filing for bankruptcy does not mean you have to lose your home. It is entirely possible that you will be able to keep your home. This is dependent upon the your home’s value and whether or not you have taken a second mortgage. Additionally, some states have homestead exemptions that might let you keep your home, provided you meet certain requirements.
Be sure that bankruptcy really is your best option. You may be able to get away with going through debt consolidation to help make the payments easier to deal with. A bankruptcy filing takes a great deal of time, and it can be extremely stressful. In addition to the stress associated with bankruptcy, you will also have to deal with severely restricted credit in the future. Before you decide to file for bankruptcy you want to be absolutely certain that it is the only way to resolve your problems.
There are circumstances where you are able to keep your car during a bankruptcy so be sure to ask your lawyer about possibly reducing the payments. Chapter 7 bankruptcy is one of the most common and effective. 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.
Understand the rights you have as a bankruptcy filer. There are unscrupulous debt collectors who may suggest that your obligations cannot be included in a bankruptcy. There are few debts that can’t be discharged. If a collector uses this tactic about debt that can, in fact, be discharged through bankruptcy, report the collection agency to the attorney general’s office in your state.
Banish the word “shame” from your vocabulary before you file for bankruptcy. A lot of people have a negative opinion of bankruptcy, mostly because they misunderstand this procedure. These sorts of feelings are not helpful to you. Indeed, they may cause you mental anguish. Remembering to stay positive as you go through financial difficulties is a great way to deal with your bankruptcy filing.
Be aware of the fact that you may be under a great of stress while you deal with your bankruptcy. The best way to lessen this stress is to employ a lawyer, who can handle most of it for you. When choosing an attorney, cost isn’t the only thing to look at. While the person you select does not have to cost the most, they should be competent and reliable. Ask your friends, relations and acquaintances who have shared your experience to give you referrals to good lawyers. You might be able to view a court hearing. You might be able to watch how your prospective attorney handles the case.
Personal Bankruptcy
If you have decided that your only option is filing for personal bankruptcy, you’ll want to know exactly the right steps to take to proceed . The process will get easier as you learn all you can. By starting with the information we have presented here, you should be able to begin to come to grips with your personal bankruptcy situation.
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