There are quite a number of people who have been affected by the economy, and now find themselves buried in debt. If you are in this situation and do not take take action, things will only get worse as collection agencies try getting their money. If this sounds like your situation then perhaps filing for bankruptcy may be in the cards for you. Read the following paragraphs to decide if this path is one that you should take.
Secured Card
It’s not uncommon to learn soon after bankruptcy that you are unable to get an unsecured credit card easily. Since it is important that you work to rebuild your credit, you should instead think about applying for a secured card. This at least shows you are making an honest attempt at reestablishing your credit worthiness. If you pay your secured card off on time, you’ll eventually find that companies will start offering you unsecured credit.
Don’t try to hide anything if you are filing for bankruptcy, as this will hurt you in the long run. All of your financial information, be it positive or negative, must be disclosed to those in charge of filing your case. They need to know it all. Never hide anything, and make sure you come up with a well devised plan for dealing with bankruptcy.
Be sure to enlist the help of a lawyer if you’re going to be filing for bankruptcy. You might not understand all of the various aspects to filing for bankruptcy. An attorney will make sure that everything is being done correctly.
Stay abreast of new laws that may affect your bankruptcy if you decide to file. Bankruptcy laws change a lot and before making the decision to file, you need to know what you are getting yourself into. A qualified bankruptcy attorney is the best source for the latest information regarding the laws in your state.
If you are earning enough to cover your bills, don’t file for bankruptcy. Bankruptcy may appear like the easier way to avoid paying your old bills, but it is a huge mark on your credit score and remains there for up to 10 years.
If you are in the midst of a Chapter 13 bankruptcy, it is possible to apply for certain loans. But, it could be harder. You will have to get this loan approved by your trustee. You need to show them why and how you can handle paying back the new loan. You will need to be able to explain why the purchase is necessary.
Do not forget to list each and every debt you have. Forgetting to add these may cause your petition to be delayed, or even dismissed. Even if it’s a small sum, make sure it is listed. This includes income from second or part time jobs, vehicles and loans.
Before you file bankruptcy, consider how you will pay off your debts. The bankruptcy code stipulates that you cannot make certain payments to creditors or family for specified periods of time before filing. Study applicable regulations prior to making any financial choices.
Do not take too long deciding that it is time to declare bankruptcy. Although it may be tough to admit you are in financial trouble, the more you wait the higher the debt becomes. When you talk to someone professional in a timely manner, you will be able to get advice on what you can do prior to it getting too complicated.
You do not need to lose all your assets just because you file for bankruptcy. You can often keep personal property. This covers items such as clothing, jewelry, electronics and household furnishings. This will all depend on the type of bankruptcy you choose, your finances, and your state’s laws, but you could hold onto your large assets like the car and the family home.
A couple months after your bankruptcy is complete, acquire copies of your credit reports from each of the three credit reporting agencies. Be sure these reports are accurate and correct in regards to all of your closed accounts. If there are any errors, make sure that you take action to resolve them as soon as possible.
Be certain to create a list that displays all the debts you want discharged when you file. If you fail to include a debt in your filings, you will still owe it when your bankruptcy is discharged. It’s your duty to be sure you have everything written down that is important because some debts that could have been discharged may be missed.
Some lawyers offer a free phone line so creditors may be referred there when they make attempts to contact you about your delinquent accounts. You can give all of your creditors this number so they can confirm that the account is included in a bankruptcy filing. You should receive no more calls from them.
Credit Card Balance
If you will get hit hard when it comes to your taxes, don’t assume that bankruptcy will get you out of it. Some filers pay the taxes that they owe with credit cards and then they file for bankruptcy. This is a little trick they try, assuming that a credit card balance won’t be looked at the same way. Unfortunately, you’ll just end up having to pay your credit card balance plus interest.
This article should have made it clear that there is plenty of help out there for someone who wants to file for bankruptcy. If you open your mind to this process and think clearly, it can lead to better financial situation and leave you in a much better position than before.
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