Have you found yourself in a tight financial spot, and feel that bankruptcy is your only way out? Do not despair, because there are other people in the same boat. Lots of people all over the world have used bankruptcy as a means to get themselves out of a troubled financial situation. The article you are about to read will give you bankruptcy tips you should use to make sure everything goes the way it should.
Don’t pay tax requirements with your credit cards with the thought of starting the bankruptcy process afterward, without doing your research first. In some places the debt can not be discharged, and you may still need to pay the IRS afterward. One thing that you should remember is that if your tax is dischargable, your debt will also be dischargeable. Just because your credit card could be discharged in bankruptcy does not mean you should use it.
Credit History
Be certain you are making the right choice before you file for bankruptcy. There are other options available, such as credit counseling for consumers. Bankruptcy is a serious negative on your credit history so make sure you have no other options before you file. It is important to keep your credit history as positive as possible.
Ensure that you are providing genuine details when filing a bankruptcy petition, because honesty is the best policy when dealing with bankruptcy. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
Don’t hesitate to give your attorney a heads-up about something she has missed. Chances are that you may have forgotten to tell them about certain specifics that may be important to your filing. Don’t fear speaking up since it affects your case and future.
Be aware that getting unsecured credit is going to be tough once you’ve gone through bankruptcy. In this event, you should attempt to apply for a secured card or two. This will show other people that you’re serious when it comes to having your credit record in order. Once creditors see that you are making an effort to restore your credit, they may allow you to get an unsecured card in the future.
Determine which of assets are safe from seizure and which are not before filing for personal bankruptcy. Check the bankruptcy laws in your state to find out if certain items are excluded from your bankruptcy filing. Be sure that you study this list. Make yourself aware of any assets you have that could be seized. If you aren’t aware of this, you could lose some assets that you value.
Don’t throw in the towel. Once bankruptcy has been filed, you may be able to regain possession of items such as electronic goods or cars that were taken away from you. You may be able to get your property back if fewer than 90 days have passed between the repossession and are filing for bankruptcy. Speak with your attorney about filing the correct petition to get your property back.
If you’re filing for bankruptcy soon, be sure you are going to hire a lawyer. You might not understand all of the various aspects to filing for bankruptcy. Your lawyer will make sure that the filings are correct and help you navigate the complex process of filing for bankruptcy.
Before making your decision to file for bankruptcy, double-check to see if other, less drastic options could make sense. For example, there are credit counseling services that can help you to deal with smaller amounts of debt. You could even negotiate for lower payments. However, you should ensure that you always obtain a written record of all the changes to your debt that you’ve agreed to.
Safeguard your home. Filing for bankruptcy will not always result in losing your home. Depending on if your home’s value has gone down or if it has a second mortgage, you might be able to keep it. You are still going to want to check into homestead exemption either way just in case.
Filing for bankruptcy is not the best choice if your monthly income is enough to cover your bills. Though bankruptcy may appear to be a good way to escape your debts, it does affect your credit negatively for a fairly long time.
Interest Rates
You should weigh every option before thinking about bankruptcy. Instead of rushing into bankruptcy, a good idea is too speak with an attorney who may be able to get your interest rates reduced or help get you on a debt repayment program. A plan that can be useful when foreclosure is looming is a loan modification. The lender can help your financial situation by getting interest rates lowered, dropping late charges, and in some cases will allow you to pay the loan over a longer period of time. Creditors would rather be repaid, however slowly, than have you declare bankruptcy.
As you can see by now, many people find themselves pondering whether or not to file bankruptcy. By reading this article, you have given yourself an advantage that many of these people lacked. The tips in the article above will help you get through your bankruptcy.
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