Great Tips To Help You Work Through Personal Bankruptcy
Posted at by PConran on category BankruptcyBankruptcy is a difficult decision for anyone to make; however, it is sometimes necessary. Before filing for bankruptcy, it is important that you fully understand what it means and what is involved in the bankruptcy process. Keep reading for tips and advice from those with personal bankruptcy experience.
Do not use a credit card to pay income taxes and then file for bankruptcy. 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. Generally speaking if you can discharge the tax, you can discharge the debt. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.
Do not hesitate to remind your lawyer of any details regarding your case. Never assume that they can remember all details without reminders. Do not hesitate to speak up; this is your hearing and your future is on the line.
Once the bankruptcy is complete, you may find it difficult to receive unsecured credit. A great way to rebuild your credit is to apply for a prepaid credit card. If you pay what you owe back promptly at all times, you can show that you are taking steps to be responsible about your payments and credit rating. Once creditors see that you are making an effort to restore your credit, they may allow you to get an unsecured card in the future.
Do not attempt to conceal any assets when filing for bankruptcy because you may be penalized when they are discovered. Whomever you use to file with must know everything there is to know about your finances, both good and bad. 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.
Before you decide to file bankruptcy, be sure to check for any new laws that may apply to your case. Bankruptcy law evolves constantly, and it’s important to stay up-to-date to ensure that you file properly. Review the state legislature web site or contact the state legislature office to keep abreast of changes in the law.
Always weigh your options carefully prior to deciding to dive head first into filing a bankruptcy claim. For instance, a consumer credit counseling program may be a better bet if your debts are relatively small. 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.
The two main kinds of bankruptcy are Chapter 7 and Chapter 13. Make sure you understand them so you know what is best for you. If Chapter 7 is what you file, your debts will get eliminated entirely. The ties with the creditor will be broken. Chapter 13, on the other hand, involves a five year payment period before any remaining debts are cancelled. You have to know what differs between all of the kind of bankruptcy, so you know which is one is ideal for you.
Take steps to ensure your home is protected. Just because you’re going bankrupt doesn’t mean that you also have to be homeless! You might be able to keep your home, for instance, if you have two mortgages or if your home has lost its value. There are other options such as a homestead exemption which offers you a chance to remain in your home, depending on whether or not you meed certain financial conditions.
Sometimes declaring personal bankruptcy is simply unavoidable. Here you have found some great advice and help to guide you in your bankruptcy. Know that you are not the first, and surely not the last. It will be a little easier to face bankruptcy after learning from people who have experienced it.