The path to bankruptcy is not normally a happy one, but your life can improve once the filing has occurred. Wiping the slate clean means having a new lease on life. Keep reading to see how bankruptcy can actually give you a new lease on life, rather than function as a permanent financial albatross.
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. Credit card debt is handled charge by charge during bankruptcy, and in most states, tax debt cannot be discharged through bankruptcy. Should the tax be dischargeable, the debt is often dischargeable as well. Just because your credit card could be discharged in bankruptcy does not mean you should use it.
Don’t feel bad if you need to remind your attorney about any specifics of your case. Never assume that they can remember all details without reminders. Speak up if something is troubling you, as this is your future we are talking about here.
You may end up losing more than you bargained for when you file a bankruptcy claim, so be sure that you know just which assets may be taken before filing. Certain assets, as listed in the local bankruptcy regulations, are immune from seizure during bankruptcy. It is important that you read this list before filing for bankruptcy, so that can find out whether or not your most prized possessions will be seized. If you don’t read this list, there is a chance that you might get nasty surprises when they take your things away.
Keep at it! Bankruptcy might help you get back things you thought you’d lost and had repossessed, such as electronics, vehicles and jewelry. If it has been fewer than 90 days since you filed for bankruptcy, it is possible for you to get repossessed property back. Talk to your lawyer to find out how to go about properly filing a petition.
Be sure your home is well protected. Filing for bankruptcy will not always result in losing your home. Whether you get to keep your home depends on a few things, including its value and whether you have debts like a second mortgage or HELOC. It can be worthwhile to understand the homestead exemption law to see if you qualify to keep living in your home under the financial threshold requirements.
There are two different kinds of personal bankruptcy you can file for: Chapter 7 and Chapter 13. Read up on the topic and familiarize yourself with the benefits and drawbacks of both variations. If there is anything that you don’t understand, go over it with your lawyer so that you can make the best decision.
Remember to only file for bankruptcy if you need to. Some people have great luck with handling debt with debt consolidation, which means taking out only one loan to pay off many loans. The whole process of filing for bankruptcy can be a long, and hard one. You should be aware that there are some negative ramifications to it, like extreme damage to your credit score. Personal bankruptcy should be undertaken as a last resort when no other workable options are available to you.
Chapter 13 Bankruptcy
Look into filing Chapter 13 bankruptcy. If your source of income is regular and your unsecured debt is less than a quarter million, Chapter 13 bankruptcy is something you are able to file for. You can keep personal possessions, as well as real estate, while paying into a debt consolidation system. That plan lasts approximately three to five years, and then you are discharged from unsecured debt. Bear in mind that if you miss a single payment that is due under your plan, the entire case will be dismissed by the Court.
Spend time with loved ones. Bankruptcy can take a toll on you. At the end of the process, many people are left with feelings of shame and worthlessness. Avoidance of friends of family during the process is not uncommon. Do not isolate yourself or you will put yourself at risk for depression. For this reason, if you are undergoing personal bankruptcy proceedings, you must continue to live a normal life, spending time with your friends and relations.
Bankruptcy can cause anxiety and a host of other physical and emotional issues. To have a reliable and trustworthy guide through the process, find a highly qualified attorney. Look beyond the fees a lawyer charges when you make your hiring decision. Choosing a lawyer should be based on finding one with a proven track record who can give you the help that you need. Get referrals from people you know who have been in your situation, check with the better business bureau and use free consultations to interview several people. You can attend court hearings if you want to see a prospective attorney in action.
Don’t drag your feet figuring out if bankruptcy is the right thing to do. Your debt will only continue to mount as you waiver on the decision, difficult as it might be. Speaking with a professional quickly will provide you with the advice you need before things spiral out of control.
You will find many people, who have filed for bankruptcy, completely separate themselves from ever using credit again if possible. This is actually a poor idea because credit helps to build good credit. If you don’t use your credit, you won’t be able to make big purchases on credit in the future. The best way to help build your credit is to get one credit card and pay it off at the end of every billing cycle.
In conclusion, most circumstance that lead to bankruptcy are not positive. However, what happens to your life after bankruptcy can have a happy beginning. As a matter of fact, if you put the ideas in this article into play, you can let bankruptcy proceedings a pivotal moment in your existence towards a brighter future.
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