Bankruptcy Made Simple With These Easy Tips

Posted at by PConran on category Bankruptcy

Do not be alarmed if you find yourself falling further into debt or have contemplated bankruptcy. Do not worry, there are actually ways around filing bankruptcy. Read the following article to learn how to stay away from bankruptcy.

If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. In a lot of places, the debt cannot be discharged, and you may still owe money to the IRS. Keep in mind that if the tax debt is eligible to be discharged, then the credit card debt is also 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.

Be sure you’re doing what’s right before you file for bankruptcy. 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.

Be sure to remind your lawyer if it seems that some details of your situation are forgotten. You should not take for granted that your lawyer will remember every important detail that you have have told him earlier without a reminder. Don’t fear speaking up since it affects your case and future.

After a bankruptcy, you may not be able to receive any credit cards. If so, apply for a secured credit card. When you do this, it shows your determination to fix your credit history. Once you’ve built up a history of on-time payments, you may start getting unsecured credit again.

Prior to filing for bankruptcy, determine which assets, if any, are exempt from being seized. The Bankruptcy Code lists assets considered exempt from being affected by bankruptcy. It is crucial to read the list before you file for bankruptcy so you know whether your favorite items will be taken. If you aren’t aware of this, you could lose some assets that you value.

No good will come of trying to conceal your assets or your liabilities in the bankruptcy process; you want to be scrupulously honest when you declare bankruptcy. The person you choose to file with needs to know both the good and bad aspects of your finances. Never hide anything, and make sure you come up with a well devised plan for dealing with bankruptcy.

Do what you can to keep your home. Filing for bankruptcy does not mean you have to lose your home. 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, look into the homestead exemption which may allow you to stay in your home if you meet financial threshold requirements.

Thing about filing a Chapter 13 bankruptcy. Chapter 13 bankruptcy is a good choice for people whose unsecured debts amount to lower than $250,000 and who receive a regular income. When you file for Chapter 13, you can use the debt consolidation plan to repay your debts, while retaining your real estate and your personal property. The plan is usually for a term of three to five years, and a discharge will be granted at the end of that term. Missing a payment under these plans can result in total dismissal by the courts.

Planning can make a big difference. If aren’t in such dire circumstances that you must file for bankruptcy immediately, it might be a good idea to wait if there is a reasonable chance you can improve your financial situation. Every little bit helps when you are working to get out from under the threat of bankruptcy. Take the time now to plan for the future.



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