What Should You Consider When Filing Bankruptcy?
Posted at by PConran on category BankruptcyYou might fear the IRS because they could seize assets, such as your car. Make your finances better and avoid collection calls by contemplating bankruptyc. To make your way through filing for bankruptcy smoothly, follow the tips presented in this article.
Make sure you keep reminding your attorney about any important details in your case. Don’t assume that they will recall every detail that you go over with them without a friendly reminder. Remember that you’re the boss. You’re paying your lawyer, so you should not be afraid to have your say. After all, the quality of your life hangs in the balance.
The best way to build your credit up after a bankruptcy is making all your payments on time. If that is the case, you should try applying for one, or two secured cards. This will allow you to start building a good credit history while minimizing the bank’s risk. Once you’ve built up a history of on-time payments, you may start getting unsecured credit again.
Prior to filing for bankruptcy, determine which assets, if any, are exempt from being seized. Bankruptcy exemptions are properties may not be seized during bankruptcy. It is vital that you know the things on this list prior to filing for bankruptcy, in order to determine which of your possessions will be taken away. If you do not read this list, you could be in for some nasty surprises in the future, if some of your most prized possessions are seized.
Make sure you are completely honest when filing for bankruptcy. Hiding your assets is never wise. All of your financial information, be it positive or negative, must be disclosed to those in charge of filing your case. They need to know it all. Being honest is both the right thing to do and, moreover, it is required by law.
See if there is an alternative you can use before declaring bankruptcy. For example, you may want to consider a credit counseling plan if you have small debts. You could even negotiate for lower payments. However, you should ensure that you always obtain a written record of all the changes to your debt that you’ve agreed to.
Learn about teh differences between Chapter 13 and Chapter 7 bankruptcy. Research both types of bankruptcy online, and weigh the positives and negatives each would offer you. If something doesn’t make sense to you, go over it with your lawyer prior to choosing which one to file.
It is imperative that you know for sure that bankruptcy is the option you need. Maybe you can just consolidate debt to make it simpler to deal with. Declaring bankruptcy is a very involved process that can cause a good deal of anxiety. Your future credit will be affected by these actions. You only want to file for bankruptcy after you have exhausted your other options for dealing with your debts.
If your income exceeds your obligations, you should not seek bankruptcy protection. While bankruptcy may seem like an easy way out of having to pay back all of the debt that you owe, it is a stain that will remain on your credit report for seven to ten years.
Even though bankruptcy is always a personal choice, do not file without checking out all other options. Be careful, because many services offering debt consolidation are scams, and can leave you deeper in debt than you were already. Keep in mind the tips from this article, so that you can make smart financial decisions and prevent debt in the future.