What To Consider When Filing BankruptcyPosted at by PConran on category Bankruptcy
If you are faced with a repossession, the whole process can feel very intimidating. You can stop calls from debt collectors and resolve your financial issues if you consider filing for bankruptcy. Continue reading for tips to help you get through bankruptcy.
Do not attempt to pay your taxes with your credit cards and subsequently file for bankruptcy. In most states, you will still owe money to the IRS and have to take care of the interest of your credit cards. Should the tax be dischargeable, the debt is often dischargeable as well. Just because your credit card could be discharged in bankruptcy does not mean you should use it.
Don’t look at bankruptcy as a first step. Look at all the other options you may have first. There are other options available, such as credit counseling for consumers. Before you take the drastic move of filling for bankruptcy and living with a long lasting bad credit history, make sure to consider using another way that may not be as damaging to your credit.
As filing bankruptcy becomes more of a reality, don’t use your entire savings or your retirement funds to pay creditors or attempt to resolve insolvency. Unless there are no other options, your retirement funds should never be touched. Although it is quite normal to use some of your savings, ensure that you leave enough in your account for emergencies.
After filing for bankruptcy, you could have trouble acquiring unsecured credit. Look into getting a secured credit card in order to get back on your feet with building credit. By doing this, you will be letting people know that you want to fix your credit score. If you do well with a secured card and make strides to repair your credit, you will ultimately be able to receive an unsecured card.
Never give up. If you file for bankruptcy at the right time it could enable you to get your property back that you lost to repossession. You should be able to get your possessions back if they have been taken away from you within 90 days before you filed for bankruptcy. Consult with a lawyer who can help you along with filing the petition.
Stay up to date with any new bankruptcy filing laws. The laws are constantly undergoing changes, so you must stay on top of them if you are going to file for personal bankruptcy correctly. To learn about these changes, try contacting your state’s legislation office or checking their website.
Since the majority of attorneys are willing to provide no-cost initial consultations, it is smart to meet with more than one before you make a selection. Be certain that the person you meet with is really a lawyer. Avoid meeting with paralegals or legal assistants because they cannot give you legal advice. Shopping around for a lawyer can help you find someone with whom you feel comfortable.
Safeguard your home. Bankruptcy filings do not necessarily mean that you have to lose your house. You can still keep your home, it just depends on your specific situation and the value of your home. You are still going to want to check into homestead exemption either way just in case.
Do not let bankruptcy consume you, make sure you make time for your friends and family. Bankruptcy can take a toll on you. It’s generally stressful, lengthy and can make people feel guilty, ashamed, and unworthy. There are a number of people who wish to go into seclusion while undergoing the process of personal bankruptcy. This isn’t true though because when you isolate yourself you will just start to feel worse and may become depressed. Because of this, you need to make sure you spend as much time as you can with your family and friends, even if you are ashamed of your finances.
Prior to filing for bankruptcy, tell yourself that you cannot use the word “shame”. Many people get feeling of guilt when going through bankruptcy. However, having this feeling about yourself isn’t going to help anybody, and your health could even be compromised. Focusing on the positive during this stressful time is a good strategy for coping with your ordeal.
While filing for bankruptcy protection can be a useful option, make sure you also investigate other alternatives. Be wary of debt consolidation services, some of these services are scams and are only after your money. Use the tips you learned from this article to improve your financial situation and stay away from debt.