Personal Bankruptcy Tips For A Fresh StartPosted at by PConran on category Bankruptcy
Frustration, fear, sadness and anger are among the emotions you may go through as you deal with a personal bankruptcy. Many people are fixated on the question as to how they will repay their debts so much that they are unable to live their daily lives. By reading this article, you will soon realize that bankruptcy is not the end of the road for your financial future.
Don’t pay tax requirements with your credit cards with the thought of starting the bankruptcy process afterward, without doing your research first. In most states, this debt won’t be discharged, and you could end up owing the IRS a whole lot more. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. So as you can see, in this situation there is no need to use the card when the debt will be discharged when you file for bankruptcy.
Before you file for bankruptcy, carefully consider if it is the right option for you. Other available options include consumer credit counseling. Bankruptcy can leave your credit history permanently marked. Prior to doing this you need to be sure you try everything else first to get your credit history into shape and to lessen the impact.
Don’t avoid telling your lawyer specific details with your case. Don’t just assume they already know and that they have these important details committed to memory or written down. Speak up. This is your life, and your future depends on it.
Prior to filing for bankruptcy, research which assets will remain exempt from creditors. The federal statutes covering bankruptcy can tell you exactly which assets are exempt from forfeiture to pay off creditors. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. If you don’t read it, you could have nasty surprises pop up later due to your prized possessions being seized.
Always weigh your options carefully prior to deciding to dive head first into filing a bankruptcy claim. Those with smaller debts may find use in a program for consumer credit counseling. Also, if you just contact your creditors and speak to them plainly and truthfully, the odds are good that you can negotiate a better payment structure that you can afford.
Don’t be tempted to race toward a bankruptcy without taking time to make sure it is the right thing for you to do. You may be able to get away with going through debt consolidation to help make the payments easier to deal with. Filing a claim can take a long time and cause much stress. It will affect your access to credit in the future. Because of this, filing for bankruptcy should only be used as a last resort.
Avoid filing for bankruptcy if you make more money than your monthly bills. Sure, bankruptcy can get rid of that debt, but it comes at the price of poor credit for 7-10 years.
Don’t automatically assume that bankruptcy is your only option. You might be able to address your debts by arranging a repayment plan or a reduction in your interest rates. Get professional advice on these matters from a bankruptcy lawyer. For example, if you are in talks of foreclosure, you could use a modified loan to overcome your debt. Your particular loan holders can provide a lot of assistance if you’re just willing to speak with them. You can negotiate lower rates, longer terms, and other means of repayment that may keep you from having to file a claim. When all is said and done, the creditors want their money, so sometimes it’s best to deal with a repayment plan than with a bankruptcy debtor.
Now after reading the above article, you should be aware of the many options that can help you once you file for bankruptcy. Going through bankruptcy will be hard at first, but it can also be worth it. Using these tips will allow you to get through this process with ease.