People often shudder at the mention of the word bankruptcy. It is only natural that people are afraid of skyrocketing debt that causes hardship for themselves and their family members. If you are in a situation that may require a bankruptcy filing, don’t let fear overcome you. Read this article and learn valuable tips and advice to make this scary situation much more manageable.
Credit Card
Do not pay your taxes with credit cards that will be canceled when you file for 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. Thus, it doesn’t make sense to use a credit card when it is going to be discharged when you file for bankruptcy.
Ask yourself if filing for bankruptcy is truly your best option. Consider any other options that are available to you, such as consumer credit counseling. Your credit record will be harmed by a bankruptcy filing, and therefore prior to making such a decision, it is wise to investigate other options in order to minimize the damage you suffer.
Always remind your lawyer of specifics that are important to your case. Inaccurate or incomplete information can lead to your petition being denied. Be as open as you can be to make sure your bankruptcy goes as well as possible.
You should never give up. Filing for personal bankruptcy may possibly enable you to reclaim your personal property that have been repossessed, like your car, electronics and jewelry items. You may be able to recover repossessed property if the repossession occurred fewer than 90 days ago. Speak to a lawyer who will be able to help you file the necessary paperwork.
If you are about to file for bankruptcy, then make sure you hire a lawyer. Bankruptcy is a complex process, and you probably don’t know all the information that is required to navigate it. A bankruptcy attorney can help yo,u and make certain you can do things the right way.
Be sure that bankruptcy really is your best option. Many times a consolidation loan will ease your financial struggles. Going through the bankruptcy process is a long drawn process which at times can be incredibly stressful. It will also make it tough for you to secure credit after your filing is complete. Personal bankruptcy should be undertaken as a last resort when no other workable options are available to you.
If your income exceeds your obligations, you should not seek bankruptcy protection. While bankruptcy may seem like an easy way out of having to pay back all of the debt that you owe, it is a stain that will remain on your credit report for seven to ten years.
Once your bankruptcy filing is under way, take the time to decompress a little. Filing for personal bankruptcy can be very stressful for the debtor. That stress can lead to depression, if you don’t take the right steps in fighting it. Life is going to get better once you get through this.
Debt Collectors
Know your rights when filing for bankruptcy. Occasionally, debt collectors will attempt to convince you that your debt isn’t eligible for bankruptcy. There are few debts that can’t be discharged. If any debt collectors tell you that their debts can’t be bankrupted, make a report with your state attorney general.
File when the time is right. Filling for bankruptcy can be a matter of correctly assessing the right time to begin. For some debtors, immediate filing is ideal, whereas in other cases, it is smart to hold off until a later time. Discuss your particular situation with your bankruptcy attorney to determine the best time to file.
Do not use the word “shame”, if you go bankrupt. The bankruptcy process can make many people feel ashamed, guilty and unworthy. Do not let these negative feelings influence your decision. Focusing on the positive during this stressful time is a good strategy for coping with your ordeal.
Do your homework so you thoroughly understand the laws pertaining to bankruptcy before you file. Here is one example, an individual who files for bankruptcy cannot transfer any assets for a year before the filing date. Maxing out your credit cards immediately before filing is also illegal.
You should immediately vow to be more financially responsible before you actually file for bankruptcy. Avoid taking on more debt right before you file for bankruptcy. Filing bankruptcy should be your first sign that the way you’re living isn’t any good. Now’s the time to get your finances in order so that you can pull your credit out of the gutter. Your most recent behavior should show that you realize the error of your ways and have changed course to become more fiscally responsible.
Credit Reporting Agencies
After a few months have passed since your bankruptcy finished, go to the credit reporting agencies and get your credit report. You should double-check all the information on those reports to ensure their accuracy. Contact the credit reporting agencies if there is a discrepancy in order to rebuild your credit.
Many people are frightened of bankruptcy, and rightly so. The thought of filing may have scared you away in the past, but with this article in hand, you should fear no longer. Start making use of this bankruptcy advice right now and give your financial life a fresh new start.
This is a limited-time offer. We are not able to guarantee availability if you wait!
