You need to think carefully about your decision before filing for bankruptcy. Read the suggestions below to learn what you should expect, and the steps you will need to take as you think through this decision. Then, you can make a decision based on what you learn.
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. Credit card debt is handled charge by charge during bankruptcy, and in most states, tax debt cannot be discharged through bankruptcy. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.
It is essential when going through bankruptcy that all of your income and assets are reported openly and honestly. You might feel tempted to not declare certain assets in your bankruptcy in order to protect them from forfeiture, but if you’re found out, the process could take longer, or worse, you might be banned from filing for bankruptcy completely.
It is important to remind your lawyer of any details that may be important to your case. Don’t assume that he’ll remember something from a month ago; tell him again. Speak up, because it is your future on the line.
Credit Card
Be warned that after your bankruptcy, you may stand out as a leper to credit institutions. You may be unable to get a simple credit card. If you are in this situation, applying for a secured card may be the answer. This will prove that you want to improve your credit score. When you have done well with secured cards for a while, you should be able to obtain an unsecured credit card.
When filing for bankruptcy it is crucial that you are candid and not concealing any liabilities or assets, as it will only show up in the future. Whoever provides your legal consultation must be privy to all of your financial information. You are in this situation, now help them to give you the best assistance possible to deal with it. You do that by giving full disclosure and holding nothing back.
You should not have to pay for an initial legal consultation, and such meetings are great opportunities to ask lots of questions. Since most attorneys offer free consultations, meet with a few attorneys before deciding who to hire. You should make a final decision only once all of the questions or concerns are sufficiently attended to. You don’t need to decide what to do right away. You can take your time and check out several attorneys before making your final selection.
You can still take out a car loan or mortgage while you are in Chapter 13 bankruptcy. It is just tougher. You will need to go through various hoops in order to be approved for any new loan type. Present a planned budget that shows how you can take on the loan payment and stay current. They may also want to know why you believe you need the loan.
If you are forced to file for bankruptcy, you should avoid being ashamed of yourself. Many people feel guilty, embarrassed and unworthy when dealing with bankruptcy. These feelings can cause you to make rash decisions and cause psychological problems. Keep your mindset positive while you work through financial troubles such as bankruptcy to reduce stress and have an easier time coping.
Think before you pay debts after you’ve decided to file. Bankruptcy laws prohibit some creditor payoffs within 90 days of filing. When it comes to family members, a year is the cutoff for payoffs. Know the laws prior to deciding what you are going to do.
Write down everything that you owe. After this, you can file bankruptcy, so make sure this document is accurate. Obviously, you’re going to want to leave no stone unturned. Rummage through your files and records and receipts to come up with precise numbers. Don’t speed through this step; to get the correct sums discharged, it behooves you to get the amounts correct.
If you headed toward for bankruptcy you have little to lose, so honesty is the best policy. In fact, lying about what debts and assets you posses is one of the most serious mistakes you can make. It is against the law. Prison is a likely avenue to face when you have lied to the courts in your petition for bankruptcy.
As this article has demonstrated, you do not have to go through bankruptcy. By going through the process correctly, the outcome will be further in your favor than it might otherwise have been. Take advantage of the advice in this article, and make sure everything you have is in order. With bankruptcy, you can’t be too careful.
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