Bankruptcy And Your Credit: The Impacts Of Filing
Posted at by PConran on category BankruptcyYou do not have to keep worrying if your debts are making you think about filing for bankruptcy. There is a lot of helpful advice on the Internet that will show you how to avoid this terrible bankruptcy situation. Read this article and learn how you may prevent bankruptcy.
Generally bankruptcy is filed when a person is facing insurmountable debt. If you find yourself going through this, you should know all about the laws that are in your state. Different states have different laws regarding bankruptcy. Some states protect your home, and others do not. Familiarize yourself with the bankruptcy laws of your state prior to filing.
Do not use a credit card to pay income taxes and then file for bankruptcy. Most states do not look at this debt as chargeable, and you could end up owing money to the IRS. A common rule is that dischargeable tax means dischargeable debt. So, in short, do not use your credit cards to pay off debts right before you file for bankruptcy.
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. Don’t hide income or assets from your lawyer or the bankruptcy trustee or you may find yourself in legal trouble.
After a bankruptcy, you may not be able to receive any credit cards. If you find that to be the situation, consider requesting secured cards. When you do this, it shows your determination to fix your credit history. After some time passes they may be willing to offer you unsecured credit.
You must be entirely candid when it comes to declaring assets and obligations in your bankruptcy petition. Good or bad, you must tell your bankruptcy attorney everything about your financial situation. Bankruptcy can be a chance to simplify your finances, but any schemes you employ to conceal the truth can ruin that chance for you.
Do not give up. When you file for personal bankruptcy, you may even be able to retrieve personal property that has been repossessed. For example you may be able to get your car, electronics and even jewelry returned to you. If it has been 90 days or less between the repossession of your property and your filing, you might be able to get your property back. Consult with a lawyer who can advise you on what you need to do to file a petition.
Check into less drastic solutions prior to declaring bankruptcy. For example, if you only have a little bit of debt, you might be better off if you went through consumer credit counseling. It may also be possible to get lower payments, but if you do, be sure to obtain records for any consensual debt modifications.
If you plan well, you can improve your financial situation. Just try and buy yourself a little time and see if you can get your finances back in order. It is important that you are moving in the right direction away from bankruptcy filing. Start to plan things out on how your future will be.