Great Advice For Anyone Looking To File For Bankruptcy
Posted at by PConran on category BankruptcyIf you are facing the repossession of valuables, such as cars or jewelry, you may be feeling some fear. Filing for bankruptcy can help ease your financial burdens and put an end to harassing phone calls from debt collectors. Continue reading for tips to help you get through bankruptcy.
One of the best ways to learn more about the bankruptcy process is to hit the Internet and look up reputable bankruptcy websites. The United States Check out the Bankruptcy Institute site and do some research about consumer’s rights. As with everything in life, the more you know about filing a claim, the better off you’ll be. You can properly prepare when you know what you’re preparing for.
Don’t use a credit card to pay off your taxes before filing for bankruptcy. In some places the debt can not be discharged, and you may still need to pay the IRS afterward. Keep in mind that if the tax debt is eligible to be discharged, then the credit card debt is also dischargeable. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.
Ask yourself if filing for bankruptcy is the right thing to do. You have better options. For example, you could try credit counseling. Be sure to consider all options before filing for personal bankruptcy, as this will take a large toll on your credit score for the next ten years.
The best way to build your credit up after a bankruptcy is making all your payments on time. If that’s the case, it is beneficial to apply for one or even two secured cards. By doing this, you will be letting people know that you want to fix your credit score. If you do well with a secured card and make strides to repair your credit, you will ultimately be able to receive an unsecured card.
You may end up losing more than you bargained for when you file a bankruptcy claim, so be sure that you know just which assets may be taken before filing. There are some assets that cannot be seized through bankruptcy, and the law lists those assets. Many belongings may become eligible for repossession or seizure after filing for bankruptcy. 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.
A great tip to remember if you have filed for Chapter 13 is that you will still be able to receive a loan, so you shouldn’t refrain from trying. However, there are steps which must be taken to ensure you are within the law of bankruptcy. Your trustee can help you acquire a new loan. In order to show that you’re capable of paying off your new loan, prepare a budget that includes its payments. Also, be sure you have a clear explanation as to why the item you are purchasing is absolutely necessary.
Act at the right time. Timing is everything, especially in personal bankruptcy filings. There are occasions where it pays to delay and others where a quick decision is the best option. Discuss the strategic timing of your bankruptcy with your attorney.
Although personal bankruptcy remains an option, look into other avenues before making the decision to pursue it. Also keep in mind that a lot of debt consolidation companies are scams that can make your debt worse. Keep the tips here in mind as you navigate through your financial challenges, and prepare yourself for a more successful financial future.