The circumstances that culminate in a bankruptcy filing are likely unpleasant, though they do not need to define the rest of your life. You will be able to have a fresh start after all is said and done. Keep reading to handle the bankruptcy process in a way that is a rebirth and not a financial Armageddon.
Have a good look around the Internet to see what information is relevant to you regarding bankruptcy. The United States Department of Justice, NACBA, and American Bankruptcy Institute websites are all great places to go for up-to-date information. The more information you have, the more confident you can be about any decision you make and you will know that you are doing the best thing possible for your situation.
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. You will find few states that discharge this kind of debt. You may also wind up owing a lot of money to the IRS. Generally speaking, debt incurred to pay taxes and the tax bills themselves are treated the same in a bankruptcy. This means using a credit card is not necessary, when it will just be discharged.
Investigate your other alternatives before you decide you have to go with bankruptcy. Many times a consolidation loan will ease your financial struggles. It is not a quick and easy process to file for bankruptcy. It will also harm your ability to secure credit in years to come. Therefore, you must make sure that there is no other option that you could take before you file for bankruptcy.
Remember to have fun with your life when you’re done with the filing process initially. Bankruptcy is a stressful process: you will have to go over your bad financial decisions and perhaps feel ashamed about your decision. If you let the stress get to you you may get depressed if you’re not doing the proper things to fight it. Your life will most likely improve once you’re over this hump, so relax.
It is possible to obtain new vehicle and home loans while a Chapter 13 case remains active. It is much harder. Your bankruptcy custodian will need to approve the loan. Create a budget and prove that you will be able to afford it. You will also need to explain why it is necessary for you to take out the loan.
Know your bankruptcy rights. It is not unusual for creditors to claim that their debt is not able to be discharged. There are only three main classes of debts that are non-dischargable: taxes, child support and student loans. If a collector tries to convince you that some other type of debt, such as a credit card, is non-discharagable, get the company’s information and send a report to your state attorney general’s office.
File at exactly the right time to maximize the effect of your bankruptcy. When you time things right, it does you good, especially when you’re filing for personal bankruptcy. For some debtors, immediate filing is ideal, whereas in other cases, it is smart to hold off until a later time. Speak with a bankruptcy lawyer to see when is the best time for you to file bankruptcy.
When filing for bankruptcy, ensure you have listed all of your financial obligations. If you forget information you run the risk of having your petition delayed, or possibly even dismissed. Add every summer, no matter how insignificant, to your documentation. Anything, like a job on the side, assets, like cars, and any outstanding loans should be included.
Personal Bankruptcy
Gain all the knowledge of personal bankruptcy that you can. There are many traps in the bankruptcy laws that could trip up your case. Not only could your case be dismissed, but it may also affect your ability to refile. Spend some time learning about personal bankruptcy. If you take care of this now, you can avoid problems going forward.
You will find many people, who have filed for bankruptcy, completely separate themselves from ever using credit again if possible. This is not wise because you need to rebuild a good credit file. If you do not use credit, you will not rebuild the type of credit you will need in making future purchases. The best way to help build your credit is to get one credit card and pay it off at the end of every billing cycle.
Make a prompt decision to accept more responsibility for your financial situation before you file. In other words, you do not want to waste your efforts here by starting to ring up more and more debt. Filing bankruptcy should be your first sign that the way you’re living isn’t any good. Now’s the time to get your finances in order so that you can pull your credit out of the gutter. Your most recent behavior should show that you realize the error of your ways and have changed course to become more fiscally responsible.
As mentioned earlier, the events that drive anyone to declaring financial bankruptcy are not a happy story. Use what you have learned and take responsibility for your financial health – turn your life around. Actually, your life can become much better by following the advice presented here and moving forward past bankruptcy.
This is a limited-time offer. We are not able to guarantee availability if you wait!
