Personal Bankruptcy: Use These Tips To Help You Get Through It
Posted at by PConran on category BankruptcyIf you are faced with a repossession, the whole process can feel very intimidating. When your debt situation gets serious enough, you may want to consider personal bankruptcy as a way to save yourself. Continue reading for tips to help you get through bankruptcy.
Don’t pay tax requirements with your credit cards with the thought of starting the bankruptcy process afterward, without doing your research first. In some places the debt can not be discharged, and you may still need to pay the IRS afterward. If the tax has the ability to be eliminated, the debt can be too. Therefore, you have no reason for use of a credit card, if the amount is to be discharged in due process of the bankruptcy.
Try to make certain you are making the right choice prior to filing your petition. You have other options available like consumer credit counselling services. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
Make sure you are always providing honest documentation whenever you have to file for personal bankruptcy. You must avoid the temptation to conceal any valuables, money or other assets from the courts. If they find that you have lied, you may be faced with fines, penalties or the inability to file in the future.
Don’t fear reminding your attorney of any specific details of your case. You cannot expect your lawyer to remember every important detail without some reminder from you. 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. Having a credit card of any type will allow creditors to realize that you’re attempting to work in the right direction to repair your credit. 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 despair, as it’s not the end of the world. Filing for personal bankruptcy may possibly enable you to reclaim your personal property that have been repossessed, like your car, electronics and jewelry items. If you have been subject to a repossession during the 90 days before your filing, you stand a good change of getting your property back. Discuss your options with a good lawyer who can help you with the filing of your bankruptcy petition.
Be certain to grasp the distinction between Chapter 7 and Chapter 13 bankruptcy cases. Chapter 7 bankruptcy is intended to wipe out all outstanding debts. You will no longer be liable for any money that you owe to your creditors. Chapter 13 bankruptcy though will make you work out a payment plan that takes 60 months to work with until the debts go away. You need to determine which type of bankruptcy is right for you given your unique financial situation.
Although bankruptcy can be a valid choice,there are many options to explore before considering it. Most debt consolidation companies aren’t legitimate and will make your debt worse. If you must file bankruptcy, learn from your mistakes and become a more conscientious consumer.