Filing for bankruptcy is a very important decision and one that shouldn’t be taken lightly. Doing your research, partially by reading articles like this one, is an important first step in filing for bankruptcy. Find out all the information you can before filing for bankruptcy.
Don’t pay tax requirements with your credit cards with the thought of starting the bankruptcy process afterward, without doing your research first. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS. The rule here is that if you can get the tax discharged then you can get the debt discharged. Just because your credit card could be discharged in bankruptcy does not mean you should use it.
When it appears likely that you will file a petition, do not start spending your last remaining funds on debt repayment. Avoid touching your retirement accounts whenever possible. Your savings accounts offer valuable financial security so try to leave them intact.
Unsecured Credit
After filing for bankruptcy, you could have trouble acquiring unsecured credit. A great way to rebuild your credit is to apply for a prepaid credit card. Having a credit card of any type will allow creditors to realize that you’re attempting to work in the right direction to repair your credit. After a while, you may be able to get unsecured credit again.
Do not give up hope. There may still be way to get repossessed items back after you file for bankruptcy. If your personal property was repossessed within 90 days before your bankruptcy filing, you may have a chance of getting it back. Get the advice of a qualified attorney who can advise you about ways to accomplish this.
Find a bankruptcy attorney who offers free consultations, and ask lots of questions. Most attorneys offer free initial consultations, and you should take advantage of the chance to interview multiple practitioners. The lawyer who properly answers your questions is the one you should hire. After the consultation, you are not immediately required to come up with a decision. This offers you the opportunity to speak with other attorneys.
Before you file for personal bankruptcy, be sure that you are cognizant of all current laws. Laws are ever-evolving. You must stay current with bankruptcy laws if you want to be successful in your challenge. To learn about the changes, you should check out the website of your state’s legislation or you can call their office.
Meet with a few attorneys who offer free consultations before hiring one. It is important to meet with the actual attorney, not the attorney’s assistant or paralegal; those people are not permitted to give legal advice Seeking out different attorneys is all part of the process until you find someone that you can trust.
There are two different kinds of personal bankruptcy you can file for: Chapter 7 and Chapter 13. Research both types of bankruptcy online, and weigh the positives and negatives each would offer you. If you’re really not sure how this all works after your research, meet with your lawyer and ask them prior to making a decision.
Chapter 13
Research Chapter 13 bankruptcy, and see if it might be right for you. If you owe an amount under $250,000 and have a consistent income source, Chapter 13 may be right for you. When you file for Chapter 13, you can use the debt consolidation plan to repay your debts, while retaining your real estate and your personal property. Expect to make payments for up to 5 years before your unsecured debts are discharged. Remember that if you even miss one payment that’s due under this plan, the court could dismiss the whole case.
As this article has demonstrated, you do not have to go through bankruptcy. You must do a wide variety of things correctly. By following the suggestions above, you can make sure that you have addressed all of the important items that you need to take care of during your bankruptcy.
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