If you were unfortunate enough to have your property repossessed by the tax man, you should probably consider bankruptcy. While bankruptcy is a big hit to your credit history, it can be the only option. Continue reading for more information about how and why to file for bankruptcy.
Do not hesitate to remind your lawyer of any details regarding your case. You cannot expect your lawyer to remember every important detail without some reminder from you. Speak up if something is troubling you, as this is your future we are talking about here.
Secured Card
You may still have trouble receiving any unsecured credit after a bankruptcy. If this is so, apply for a secured card or two. If you pay what you owe back promptly at all times, you can show that you are taking steps to be responsible about your payments and credit rating. If you pay your secured card off on time, you’ll eventually find that companies will start offering you unsecured credit.
Be as honest as you possibly can when filing for bankruptcy; hiding liabilities or assets will only hurt you in the long run. Whoever provides your legal consultation must be privy to all of your financial information. Put everything out on the table and craft a wise plan for handling the situation the best you can.
Learn all the latest laws before you file bankruptcy. Make sure to get the most up-to-date information concerning the bankruptcy laws in your state. To find out about these changes, you can look at your state’s legislation website or contact their office.
If you filed for Chapter 13 bankruptcy, you can still get a mortgage or a car loan. However, it will be a longer and more arduous task. Your trustee can help you acquire a new loan. To show that you are responsible and prepared for the undertaking of a new loan, flesh out a full budget. You also have to prepare yourself to explain the reasons you need to buy the item.
Find the right time to take action. When it comes to filing for personal bankruptcy, timing is vital. Sometimes you should file immediately; however, there are times when it is better to delay until the worst has passed. Talk with a bankruptcy attorney to find out the ideal timing for filing based on your particular situation.
When filing for bankruptcy, list all of your financial information. If you forget information you run the risk of having your petition delayed, or possibly even dismissed. Make sure that you add very small sums, even if you believe that they aren’t important. Don’t forget about side jobs, loans you’ve taken out or vehicles that might count as assets.
Consider every option prior to filing for bankruptcy. Think about seeing a credit counselor. There are even non-profit companies that may be able to help you. They can speak with your creditor about getting your payments and interest reduced. You’ll make your payments to the company, and the company will pay off your creditors.
As you are heading towards a bankruptcy filing, don’t be tempted to run up cash advances on your credit cards in the belief they will be erased in the legal proceedings. This is fraud, and you will be required to pay that money back.
Don’t put off handling the research or procedures for the bankruptcy process if that is the route you’re taking. It is difficult to admit that you are in over your head financially, but waiting will just make the problem worse. A qualified bankruptcy lawyer can give you advice about filing for bankruptcy and help you weigh other options.
You do not need to lose all your assets just because you file for bankruptcy. Personal property can be kept. This will include things like clothes, jewelry and electronics. It is even possible that your home and one car will be safe, depending on the laws in your state, your exact financial situation, and the Chapter which you file under.
Credit Report
Do a check of your credit report from all the top companies who report on consumer credit after two or three months have passed following your bankruptcy. Check to make sure your credit report accurately reflects your recently discharged debts. If any discrepancies appear, check on them immediately. This will allow you to start fixing your credit.
Filing for a different type of bankruptcy is a good idea if you think you will lose your home. Try Chapter 13 instead of Chapter 7. Some cases make it best for you to take your Chapter 7 case to a Chapter 13 one, so make sure that you talk this over with your attorney.
Make sure you understand which debt obligations are likely to be discharged. Debts like student loans will stay on your credit report no matter if you file or not. If you need to reconcile debts of this kind, use an agency that specializes in credit repair or loan consolidation instead of filing for bankruptcy.
Finding out about your personal bankruptcy options is the difference between a successful and an unsuccessful claim. Just be sure that you do not use it as your first choice. Knowing the ins and outs of bankruptcy can make the filing process easier and make it less likely that you’ll have to forfeit your property.
