Things You Can Do To Pick Yourself Up After Bankruptcy
Posted at by PConran on category BankruptcyWhen your debts get out of control, it’s common to start worrying about losing your possessions and assets that you care about most. Stop the calls from your creditors, and look over your finances. You may discover that you need to file for bankruptcy. Keep reading for useful tips to help you through the process.
You should avoid paying your taxes with credit cards and then immediately file for bankruptcy. 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. Because of this, transferring the debt to your credit card is pointless.
Try to get a bankruptcy lawyer that your friends recommend, as opposed to someone that you find from the Internet or yellow pages. There are so many dime-a-dozen companies out there who make it a practice of preying on financial desperation. You need to make sure your bankruptcy goes smoothly, so find someone you know you can trust.
Be honest when filing for bankruptcy. Don’t hide liabilities or assets, as they’ll come back and haunt you. Whomever you use to file with must know everything there is to know about your finances, both good and bad. Don’t withhold information, and create a smart way of coping with the reality of the situation.
There is hope! You can often have property returned to you. Autos, jewelry and even electronics that have been repossessed, could be returned. Filing for bankruptcy may allow you to regain ownership of recently repossessed property. Speak with a lawyer that will provide you with guidance for the entire thing.
Familiarize yourself with the bankruptcy code before you file. Bankruptcy law has changed substantially in recent years, and therefore you must understand how such changes may affect your situation. If you are not sure about the current laws all you have to do is look into what laws have been passed.
Before you decide to declare bankruptcy, make sure that a less-drastic solution isn’t more appropriate. For example, you want to look into credit counseling. This is the best option for small debts. 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.
Do some research to find out more about Chapter 13 and Chapter 7. Chapter 7, for example, will wipe away every one of your outstanding debts. This type of bankruptcy ends any relationship you might have with creditors. Chapter 13 bankruptcy allows for a five year repayment plan to eliminate all your debts. You need to be aware of the pros and cons of each type of bankruptcy so you can correctly select the best choice for your situation.
Your most important concern is to protect your home. Filing for bankruptcy does not mean you have to lose your home. For instance, if your home value has dropped recently, or even if you happen to hold a second mortgage, you may not necessarily lose the home. If you’re not sure, however, you can always study the particular homestead exemption regulations. You will learn everything you need to know.
Learn about teh differences between Chapter 13 and Chapter 7 bankruptcy. Investigate the benefits and pitfalls of both. Online resources may be able to provide all the information you need. If you do not understand what you are reading, talk to your attorney before making that serious decision.
Although personal bankruptcy remains an option, look into other avenues before making the decision to pursue it. You must remember that some debt consolidation services really are just a scam, and using them will result in even more debt for you. Keep the advice you read in mind so that you’re able to make smart choices and stay out of debt in the future.