Weaving Your Way Out Of The Personal Bankruptcy Maze
Posted at by PConran on category BankruptcyA lot of people are in debt right now. Their bills pile up higher while debt collectors and creditors keep their phones ringing constantly. If this description applies to you, you may wish to think about filing for personal bankruptcy. Read this article to determine if this is the right approach for you.
Filing for bankruptcy is something many people are forced to do when there debts become too much of a burden, and they can no longer afford to pay them. If this is the case for you, you should begin to investigate the legislation in your state. There are greatly varying laws concerning bankruptcy, so it is important to make sure you are getting the correct information. In a few states, they see to it that your house is protected. This is not the case when it comes to other states. Before filing for personal bankruptcy, be certain that you are familiar with the laws.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. Most of the time, you cannot discharge this debt. As a result, you will owe the IRS a lot of money. A common rule is that dischargeable tax means dischargeable debt. Thus, it doesn’t make sense to use a credit card when it is going to be discharged when you file for bankruptcy.
When it comes to informing your attorney about your case, don’t be fearful. Don’t assume that they will recall every detail that you go over with them without a friendly reminder. Do not hesitate to speak up; this is your hearing and your future is on the line.
After you have declared bankruptcy, you may have a hard time being approved for unsecured credit. A great way to rebuild your credit is to apply for a prepaid credit card. This will be a demonstration of the seriousness with which you view rebuilding your credit rating. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
There is hope! If you file for bankruptcy at the right time it could enable you to get your property back that you lost to repossession. If the items were repossessed less than three months prior to your filing date, you may be able to recover them. Talk with an attorney who can guide you through the process of filing a petition.
Educate yourself about state bankruptcy laws and possible outcomes before filing your petition. Bankruptcy laws are always changing, and you need to be aware of any changes so your bankruptcy can be properly filed. To stay up-to-date on these laws, check out your state’s government website.
Safeguard your home. Just because you’re going bankrupt doesn’t mean that you also have to be homeless! If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. Otherwise, try looking into house exemptions that may let you remain in the home if you meet certain financial threshold requirements.
Consider all options before filing for bankruptcy. Find out if you can receive a reduced interest rate or altered repayment plan instead of bankruptcy filing. If foreclosure is imminent, see if your loan can be altered at all through a modification plan. There are a lot of ways that your lender can assist you, such as reducing interest rates, eliminating late fees, or extending the term of your loan. Above all else, what creditors want is to get their money. Sometimes they would rather settle for a repayment plan instead of a debtor who is bankrupt.
You are not alone when you are debating filing for bankruptcy. You can have a brighter financial future by approaching the situation with a better understanding of the process and the right tools at your disposal.