Are you in debt? Do you think that there is no way to get out of your debt except to file for bankruptcy? With the Internet there is plenty of advice these days on ways to avoid disastrous situations such as bankruptcy. If you are ready to consider alternatives to a bankruptcy filing, the advice presented here may help.
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS. If the tax can be discharged, so can the debt. This means using a credit card is not necessary, when it will just be discharged.
It is essential that you are honest and forthright in the documentation you provide for your bankruptcy filings. Don’t hide income or assets from your lawyer or the bankruptcy trustee or you may find yourself in legal trouble.
Unsecured Credit
It can be difficult to obtain unsecured credit once you have filed for bankruptcy. If this happens, instead you should turn your attention to secured credit cards. That will show lenders that you are committed to rebuilding your credit. After a time, you are going to be able to have unsecured credit cards too.
Do not give up. If you file for bankruptcy, you might be able to reclaim certain property that has been repossessed, such as your car, electronics or jewelry. You should be able to get your possessions back if they have been taken away from you within 90 days before you filed for bankruptcy. A qualified bankruptcy attorney can walk you through the petition process.
Safeguard your home. There are many options available to help protect you from losing your home. Depending on whether the value of your home has decreased or if you have a second mortgage on the home, you may end up keeping it. Additionally, some states have homestead exemptions that might let you keep your home, provided you meet certain requirements.
Learn and gain a firm grasp of the differences in applying for Chapter 7 bankruptcies versus Chapter 13 bankruptcies. Research both types of bankruptcy online, and weigh the positives and negatives each would offer you. If you don’t understand the information you researched, consult with your attorney about the details before you decide which type of bankruptcy you want to file.
Talk to an attorney about reducing your car payments so that you can keep your vehicle. Chapter 7 usually can help payments be lowered. There are qualifications, such as the loan being high interest and a good work record for this option.
Chapter 7
Before you decide to file for Chapter 7 bankruptcy, consider how it could affect other people on your credit accounts, such as family members or business partners. Debts which you shared with another will not be your responsibility any longer if you file for personal bankruptcy under Chapter 7. Although filing for bankruptcy excludes your from financial responsibility, co-signers will still be expected to pay the loan amount in full.
See to it that you are aware of the laws concerning bankruptcy before you consider filing. There are many pitfalls you can easily fall into, such as transferring away assets to prevent them from being included in the filing. Additionally, it is against the law for any filer to boost up the debt amount they carry on any credit cards just before filing.
When you are filing for bankruptcy, make sure you list all of the financial information you may have. If you forget any items, your filing could be rejected. No matter how insignificant a sum seems, include it in the documentation. This might take the form of odd jobs, extra cars and outstanding personal loans.
Consider other options prior to filing for personal bankruptcy. You should consider credit counseling. Many different non-profit entities exist that can assist you without charging you any fees. Their job is to lower your payments and interest through negotiations with your creditors. They act as intermediaries between you and your creditors; you pay the counselors and they pay the companies to which you owe money.
When you have decided that bankruptcy is the right route for you to take, you need to act relatively quickly. Yes, it may be hard to admit the need for help, however, if you try to stall from getting help your situation can only worsen. Talk to a lawyer as soon as you can to get the advice that you need.
It is not uncommon for those who have endured a bankruptcy to promise to never utilize credit again. Since using credit responsibly is the only way to improve your credit score, this is not such a good idea. Credit cards are necessary for proving that you have gained financial stability and for garnering mortgage and auto loan approvals. You just have to realize that proper planning is going to have to take place and that you are going to have to start back up one step at a time.
Always have a plan for your finances. It is best to have time on your side. Just continue to do the right thing and stay on the path that isn’t towards bankruptcy. Make appropriate, responsible plans and secure your financial future.
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