When someone files for bankruptcy, it’s not a good thing. Personal bankruptcy is a stressful and potentially embarrassing time for many people. Don’t let bankruptcy overwhelm you; the article below can help.
Credit Card
Do not try to get clever by paying your taxes via credit card before you declare bankruptcy in an effort to dodge your tax burden. You will find few states that discharge this kind of debt. You may also wind up owing a lot of money to the IRS. If the tax has the ability to be eliminated, the debt can be too. Just because your credit card could be discharged in bankruptcy does not mean you should use it.
Ask yourself if filing for bankruptcy is truly your best option. You have other options, including consumer credit counseling help. Bankruptcy leaves a permanent mark on your credit history, so before you take such a large step, you want to exhaust all other options so that the future effects on your credit history are as minimal as possible.
As bankruptcy appears on the horizon, don’t take your savings or retirement accounts to try to pay off all your bills. Do not tap retirement accounts unless there is no other alternative. You may need to tap your savings, but don’t empty your savings account, as this could leave you in a difficult situation down the road.
Do not be afraid to remind your attorney of important specifics of your case. It is wrong to assume that your lawyer will remember every word you ever utter! Do not hesitate to speak up; this is your hearing and your future is on the line.
Credit Cards
After a bankruptcy, you may not be able to receive any credit cards. If this happens, instead you should turn your attention to secured credit cards. This at least shows you are making an honest attempt at reestablishing your credit worthiness. In time, it may be possible for you to obtain unsecured cards.
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. If you owe an amount under $250,000 and have a consistent income source, Chapter 13 may be right for you. You can secure your home under Chapter 13 and pay your debts with a payment plan. This plan normally lasts from three to five years, in which you’ll be 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.
Make time to visit with family and friends during the bankruptcy process. Bankruptcy proceedings can be extremely harsh. The long process can leave people stressed out and racked with guilt and shame over having their financial affairs laid out for everyone to see. Most people adopt a very negative attitude toward bankruptcy. Pulling away from people who care for you will not help the situation, and can cause your negative feelings to intensify. Spend time with your family, talk about your problems and find things that relax you.
You should weigh every option before thinking about bankruptcy. There are many recouses available to help you lower your payments and get back on track. Loan modification can help you get out of foreclosure. A good lender will be able to assist you in a variety of ways, from getting rid of your late charges to reducing interest rates. You may even be able to get a loan extension, giving you the extra time you need to pay your debt off. When push comes to shove, creditors want their money, and they are willing to make concessions to get it and prevent the debtor from declaring bankruptcy.
Once you have completed the bankruptcy filing, you should take time to do something you enjoy. It’s easy to be stressed during this time. Make sure you take care of your part and let your attorney do the rest. Life will get better after you finally get this situation over with.
If you are thinking about filing for bankruptcy, one of the first things you should do is look into the laws of your state. For example, it is against the law to transfer any assets from the filer to another for a year before filing. Also, it is illegal to load up your credit cards with debt right before filing occurs.
Every single piece of financial information you have needs to be studied and properly listed when filing a bankruptcy claim. If you do not do so accurately, your petition could be dismissed, or at the very least delayed. Even if it looks insignificant, you must add it to your documents. This can include side jobs, any vehicles to be counted as assets, and any loans you may currently have.
Don’t file for personal bankruptcy until you’ve looked into your other options. Have you been through credit counseling first? There are a number of companies that will assist you, many of which are non-profit. They will work with your creditors to get your payments lowered and your interest lowered as wll. Your payments are made to the organization and they repay the creditors.
As you can see, you do not have to resort to bankruptcy. By using this article you will be well on your way to avoiding bankruptcy. Start using the information you learned from this article and make changes so you may not have to ruin your credit history.
This is a limited-time offer. We are not able to guarantee availability if you wait!
