Is your financial situation bad and you think the only solution is bankruptcy? You’re in good company. People from all walks of life have declared bankruptcy to solve their financial problems. The article you are about to read will give you bankruptcy tips you should use to make sure everything goes the way it should.
If you are thinking about paying off your tax obligations with a credit card and then filing bankruptcy, think again. In many parts of the country, you cannot get this debt discharged, and in the end you will be left owing the IRS a big sum of money. Keep in mind that if the tax debt is eligible to be discharged, then the credit card debt is also dischargeable. This makes using a credit care irrelevant, since bankruptcy will discharge it.
One of the most important things to remember when filing for bankruptcy is to be honest and truthful every step of the way. Don’t hide income or assets from your lawyer or the bankruptcy trustee or you may find yourself in legal trouble.
Be sure to bring anything up repeatedly if you are unsure if your lawyer is focusing on it. You cannot expect your lawyer to remember every important detail without some reminder from you. Speak up, because it is your future on the line.
Unsecured Credit
Getting unsecured credit post-bankruptcy will likely be difficult. Since it is important that you work to rebuild your credit, you should instead think about applying for a secured card. This will show other people that you’re serious when it comes to having your credit record in order. After a while, you may be able to get unsecured credit again.
Keep working to improve your situation. You may be able to regain property like electronics, jewelry, or a car if they’ve been repossessed by filing for bankruptcy. If your property has been repossessed less than 90 days prior to your bankruptcy filing, there is a good chance you can get it back. Consult with a lawyer who can advise you on what you need to do to file a petition.
Before you file for personal bankruptcy, be sure that you are cognizant of all current laws. The laws change a lot, so you need to look them up and have a better idea of how to properly approach the bankruptcy process. Review the state legislature web site or contact the state legislature office to keep abreast of changes in the law.
Don’t file for bankruptcy unless it’s absolutely necessary. It might be possible to consolidate some of your debt instead. Filing a claim can take a long time and cause much stress. You will have trouble getting credit down the line. Because of this, you need to think of bankruptcy as a nuclear option; that is, a last resort.
Chapter 13
Chapter 13 bankruptcy might be a good option, so don’t overlook it. With a regular income and unsecured debt below $250,000, Chapter 13 is probably best for you. You can secure your home under Chapter 13 and pay your debts with a payment plan. This repayment period usually lasts from three to five years. If you make your payments faithfully during that time, any remaining unsecured debt will be eliminated. Missing a payment under these plans can result in total dismissal by the courts.
Make time to visit with family and friends during the bankruptcy process. Going through a bankruptcy is never easy. Not only is the process long, but it can be stressful, and many people feel ashamed when they do it. Lots of people choose to disappear for a while until the entire process is over and done with. This isn’t true though because when you isolate yourself you will just start to feel worse and may become depressed. So, it is critical that you spend what quality hours you can with loved ones, regardless of your financial circumstances.
If you are making more money than you owe, bankruptcy should not even be an option. Although bankruptcy may feel like a simple method of getting out of your large debt, it leaves a permanent mark on your credit history for up to 10 years.
Take action when the time is right. Filling for bankruptcy can be a matter of correctly assessing the right time to begin. In some cases, it is better to file immediately, while other situations benefit from trying to get certain finances in better shape before filing. A lawyer is in the best position to evaluate your case and figure out when you should file for bankruptcy.
Do a little bit of research into the regulations having to do with filing for bankruptcy before you begin the process. The bankruptcy laws are complex, and things could go badly if even one thing is out of place. Some mistakes can even lead to your case being dismissed. It is important to learn the bankruptcy code before filing bankruptcy. This will make the bankruptcy process much simpler.
As you can probably see, you are not alone in needing to file for bankruptcy protection. Having read this article, you should feel better prepared to navigate this process. Use these tips to have a smooth bankruptcy.
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