Tips To Help You Through Personal Bankruptcy
Posted at by PConran on category BankruptcyMany negative emotions are related to filing bankruptcy. Unfortunately, people experiencing bankruptcy often find themselves spending a large amount of their time worrying about day-to-day issues and expenses. As you can see, filing for bankruptcy does not mean life is over.
Don’t pay tax requirements with your credit cards with the thought of starting the bankruptcy process afterward, without doing your research first. The fact is that the credit card debt will be ineligible for discharge, and your tax debt may increase. One thing that you should remember is that if your tax is dischargable, your debt will also be dischargeable. So, there’s no reason to make use of a credit cards if it will not be discharged in bankruptcy.
When it comes to informing your attorney about your case, don’t be fearful. You should not take for granted that your lawyer will remember every important detail that you have have told him earlier without a reminder. Speak up. This is your life, and your future depends on it.
Be aware that getting unsecured credit is going to be tough once you’ve gone through bankruptcy. If you are in this situation, applying for a secured card may be the answer. You can exhibit your desire to rebuild your credit this way. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
Prior to filing your bankruptcy petition, go over the list of assets that cannot be seized by creditors. The kinds of assets which may be exempted during bankruptcy proceedings are listed in the Bankruptcy Code. Many belongings may become eligible for repossession or seizure after filing for bankruptcy. If you do not read this list, you could be in for some nasty surprises in the future, if some of your most prized possessions are seized.
Don’t give up. You may be able to regain property like electronics, jewelry, or a car if they’ve been repossessed by filing for bankruptcy. If it has been fewer than 90 days since you filed for bankruptcy, it is possible for you to get repossessed property back. A qualified bankruptcy attorney can walk you through the petition process.
Before making your decision to file for bankruptcy, double-check to see if other, less drastic options could make sense. For example, if you only have a little bit of debt, you might be better off if you went through consumer credit counseling. Some creditors will work with you to help you pay off your debt with lower interest rates, lower late fees, or an extended loan period.
You could see about filing for Chapter 13 personal bankruptcy. If you are receiving money on a regular basis and your unsecured debt is under $250,000, you may be able to file Chapter 13 bankruptcy. Filing for this type of debt will ensure that you can hold onto your real estate and personal property, and will let you develop a consolidation plan to pay off your debts. This plan normally lasts from three to five years, in which you’ll be discharged from unsecured debt. Remember that if you fail to make any of the payments on time, the court may dismiss your case.
Take some time after filing for bankruptcy to enjoy life. The filing process is extremely stressful for a lot of the people who go through it. Depression and burn-out from pent of stress will do nothing to help your situation, so it is critical to let go a little. Life is going to get better once you get through this.
Remember that filing for Chapter 7 personal bankruptcy will not just affect you. Think about the effect it will have on business associates, friends and family or anyone else who may be a co-signer with you. When filing for Chapter 7, you won’t be responsible legally for debt signed by co-debtors and yourself. Creditors, however, will hold the co-signer liable for the entire balance of the debt.
This article should have enabled you to feel a little more confident about your personal bankruptcy. While filing for bankruptcy is initially an emotional downer, things will improve. Using these tips will allow you to get through this process with ease.