Facing repossession of your valuable items, like vehicles or jewelry, can make you feel very afraid of the Internal Revenue Service. If you want to put an end to the annoying calls, the threatening letters, and other intimidation tactics, filing bankruptcy may be your only out. This article has tips that can help you through this complicated journey.
People generally mostly feel the need to get a bankruptcy filed for when they have more money owed than they can get. If this describes your situation, it makes sense to become familiar with relevant laws. Laws differ from one state to the other. Your home is safe in some states, but in others it’s not. Be sure you educate yourself on local laws prior to filing.
One of the most important things to remember when filing for bankruptcy is to be honest and truthful every step of the way. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
Unsecured Credit
After you have declared bankruptcy, you may have a hard time being approved for unsecured credit. A great way to rebuild your credit is to apply for a prepaid credit card. By doing this, you will be letting people know that you want to fix your credit score. Then, in time, it may be possible for you to obtain an unsecured credit card.
Instead of relying on random selections from the phone book or Internet, ask around and get personal recommendations. There are so many dime-a-dozen companies out there who make it a practice of preying on financial desperation. You need to make sure your bankruptcy goes smoothly, so find someone you know you can trust.
There is hope! When you file for bankruptcy you may be allowed to recover property like your car, electronics or jewelry that might have been repossessed. If you have been subject to a repossession during the 90 days before your filing, you stand a good change of getting your property back. Talk with an attorney who can guide you through the process of filing a petition.
Protect your home. You do not have to lose your home in the process of a bankruptcy. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. If this is not the case, find out more about Homestead Exemptions you might qualify for if you meet certain financial requirements.
Chapter 7
If you are moving forward with a Chapter 7 bankruptcy, you need to learn how that can negatively affect anyone who shares loans with you. You will be freed of responsibility for debts that you share if you make a successful Chapter 7 filing. However, anyone sharing the loan with you may be forced to pay back the entire amount for the amount in full, which spell financial disaster for them.
If you have filed for Chapter 13 bankruptcy, you will still be allowed to apply for and receive a mortgage or car loan. It is much harder. You need to contact your trustee so you can get approved for a new loan. Document your budget to prove that you’re going to be able to make the payments. You also need to be prepared to answer questions about your need for the new item.
If you are planning to file for bankruptcy in the immediate future, you should refrain from taking out cash advances via your credit cards. This is against the law and it is fraud. After the bankruptcy process you can be made to pay it all back to the creditor.
Filing for bankruptcy may damage your credit less than missing debt payments. Of course, bankruptcy hurts your credit for up to ten years, but you can begin to re-build your credit immediately. A fresh start is a great benefit of bankruptcy.
If you headed toward for bankruptcy you have little to lose, so honesty is the best policy. Lying about debts and assets is a huge mistake. This is not legal. Lying about your debts or assets can land you in prison.
Some lawyers offer a free phone line so creditors may be referred there when they make attempts to contact you about your delinquent accounts. That way, you can simply give creditors this number, which allows them to call your lawyer and confirm that your bill is included in a bankruptcy filing. That should make them stop calling you.
Bankruptcy should be your last resort. Be wary of debt consolidation services, some of these services are scams and are only after your money. Keep the tips here in mind as you navigate through your financial challenges, and prepare yourself for a more successful financial future.
This is a limited-time offer. We are not able to guarantee availability if you wait!
