Learning more about the process of bankruptcy is, sadly, something that a lot more people have to do today. There are many who recognize the role the economy has played in this epidemic. Before you choose to file for bankruptcy, it is important that you know the ins and outs of the subject, in order to ensure you make the best decisions. Find out more in this article.
Have a good look around the Internet to see what information is relevant to you regarding bankruptcy. The United States Department of Justice, American Bankruptcy Institute, along with many other websites can provide you with the information you need. The more you know, the better equipped you’ll be to make the wise decisions needed for a successful bankruptcy.
Don’t use a credit card to pay off your taxes before filing for bankruptcy. In most states, this is not dischargeable debt. Therefore, you will end up owing the IRS a lot of money. If the tax can be discharged, so can the debt. Because of this, transferring the debt to your credit card is pointless.
Ask yourself if filing for bankruptcy is truly your best option. You have other options, including consumer credit counseling help. Bankruptcy will leave a permanent scar on your credit report and before you take this huge step, you should search through every available option first, to help try and limit the damage to your credit.
Always be honest with the information you give about your finances. As long as you are not hiding income or assets from the courts, you can ensure that there are no difficulties with your petition. This will save you from having your petition dismissed and your debts dropped from re-filing.
Unsecured Credit
After filing for bankruptcy, you could have trouble acquiring unsecured credit. Secured cards can be a great way to get started if this happens to you. This will show other people that you’re serious when it comes to having your credit record in order. Once you’ve built up a history of on-time payments, you may start getting unsecured credit again.
Don’t hide assets or liabilities when filing for bankruptcy. It is necessary to be open regarding both the positive and negative aspects of your financial life. Bankruptcy can be a chance to simplify your finances, but any schemes you employ to conceal the truth can ruin that chance for you.
It is imperative that you know for sure that bankruptcy is the option you need. You might be better off consolidating your debt or availing yourself of some other remedy. It is not a quick and easy process to file for bankruptcy. The future of your credit will be greatly affected. Therefore, before you file for bankruptcy you need to consider all of your alternatives.
Chapter 13
If you are going to be filing for bankruptcy, think about filing Chapter 13. If you owe an amount under $250,000 and have a consistent income source, Chapter 13 may be right for you. You can keep personal possessions, as well as real estate, while paying into a debt consolidation system. Expect to make payments for up to 5 years before your unsecured debts are discharged. Remember, though, that if you fail to make even one payment, the case will be thrown out and you’ll be right back where you started.
Once the initial filing period is over, ensure that you are getting out and enjoying life. It’s not uncommon to be overwhelmed by the filing process. This stress could actually cause depression, if you don’t combat it. Life will get better after you finally get this situation over with.
As you can see, bankruptcy is quickly becoming more popular due to the poor state of our economy. Let the advice you have received from this article be a guide to help you make the right choices for you and your finances.
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