Do You Need To File Personal Bankrupcy? Use These Great Tips!
Posted at by PConran on category BankruptcyWith the state of the economy, job market, and stock market, bankruptcy has become more and more common. Not only the economy, mind you, but people’s spending habits are also to blame for the increase in claims filed. However, before you make the decision to file for personal bankruptcy, you should understand the filing process and thoroughly investigate whether it is the right choice for you. This article will help you to make the best choices.
Most people end up filing for personal bankruptcy because they owe more than they make. If you’re in this situation, learn about the laws where you live. Bankruptcy laws vary from state to state so it is important to do your research. For example, whether or not you can keep your home, as well as what you need to do to keep it, is different for every state. Know what the laws are in your state before filing.
Do not even think about paying your taxes with credit and petitioning for bankruptcy right after. Most places will not consider the debt dischargeable, meaning you will have to pay the IRS a lot of money. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. 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.
Never shirk on the truth in your petition for bankruptcy. Withholding or lying about certain information can seriously worsen your financial situation. It could lead to being unable to file for bankruptcy or even legal trouble.
You may still have trouble receiving any unsecured credit after a bankruptcy. If this happens to you, think about applying for a couple of secured credit cards. You can exhibit your desire to rebuild your credit this way. In time, you might be granted unsecured credit again.
Think carefully about your different options before filing for bankruptcy. If your debts are really not overwhelming, you may find the assistance you need by consulting a consumer credit counselor. Negotiating with creditors is another option, but creditors are notorious for “forgetting” these agreements, so get them in writing!
If you’re unsure, then you need to learn what a Chapter 7 bankruptcy can do for you, as opposed to what Chapter 13 does. Go to a reputable website and research the benefits and detriments of each type of bankruptcy. If there is anything that you don’t understand, go over it with your lawyer so that you can make the best decision.
Remember to spend some quality time with your loved ones. Going through a bankruptcy is never easy. At the end of the process, many people are left with feelings of shame and worthlessness. Some folks tend to stay in the shadows until their case has concluded. Pulling away from people who care for you will not help the situation, and can cause your negative feelings to intensify. Make it a point to catch yourself if you feel yourself pulling away from others. Tell others that you would like to do some enjoyable things together while you go through bankruptcy process, then do it.
Take into consideration all the ramifications of a Chapter 7 bankruptcy. Filing for this can impact any co-debtors, such as friends or family. You may have your responsibility for your portion of the loan discharged under Chapter 7. But, creditors will ask for the money from your co-debtor.
Clearly, the economy nowadays has had a dreadful effect on individuals and has caused bankruptcy to be a topic that is on everyone’s minds. To help you make good decisions regarding bankruptcy, consult with this article and use the knowledge to your advantage.