Simply mentioning the word bankruptcy can cause people to become nervous and worried. Rising levels of debt, paired with an inability to care for their family is a vivid nightmare for certain folks. If any of this frightens you, or you’re currently living this particular nightmare, then the contents of this article are going to prove of good use to you.
Credit Cards
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. Most places will not consider the debt dischargeable, meaning you will have to pay the IRS a lot of money. If the tax can be discharged, so can the debt. So, in short, do not use your credit cards to pay off debts right before you file for bankruptcy.
Prior to declaring bankruptcy you really need to be sure that you’ve exhausted all your other options first. Those with smaller debts may find use in a program for consumer credit counseling. 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.
Take advantage of the opportunity to consult with a number of bankruptcy lawyers who offer the first visit at no charge. Always ensure that the person you meet with is a real lawyer, not a legal assistant or paralegal. These people can’t give legal advice. Shopping around for a lawyer can help you find someone with whom you feel comfortable.
If you are earning enough to cover your bills, don’t file for bankruptcy. Sure, bankruptcy can get rid of that debt, but it comes at the price of poor credit for 7-10 years.
Act at the right time. Timing is everything, especially in personal bankruptcy filings. Sometimes it is the best option to file quickly, whereas in other situations filing should be put off until the worst has already passed. Discuss your specific situation with a bankruptcy lawyer to find out when would be your best time to file.
Look at bankruptcy as a chance to mature and take responsibility for your personal finances. Going through the filing process often brings out the worst in people, causing them to feel a variety of negative emotions. These feelings do not help you and provide no value. If you want to cope with your bankruptcy filing successfully, you must maintain a positive point of view.
When you are filing for bankruptcy, make sure you list all of the financial information you may have. Overlooking any information can result in a delayed or rejected petition. You might think something is insignificant, but you should add it anyway. Some things to be included are: current loans, valuable vehicles and side jobs.
Don’t take too long when trying to decide whether you want to file bankruptcy. As with anything in life, putting off important things such as debt repayment can snowball quickly out of control. Speaking with a professional quickly will provide you with the advice you need before things spiral out of control.
Although it is tempting to toss out the idea of ever owning credit cards again, think again. However, this is not a good idea because it is desirable to heal your credit rating. If you do not use credit, you will not rebuild the type of credit you will need in making future purchases. You can start building up a more responsible credit history by opening one credit card account.
Make a prompt decision to accept more responsibility for your financial situation before you file. It is especially important to refrain from taking on any new debt before filing. In the course of a personal bankruptcy filing, your creditors and the court will examine your credit history right up to the filing date. Let them see how you are making positive changes to your personal financial management by demonstrating what you are doing right now.
Every single asset is not necessarily lost when you file for bankruptcy. When you file for bankruptcy, you are allowed to keep personal property. Some included items are: electronics, household furnishings, clothing and even jewelry. Exactly what assets you can hang onto will depend on the applicable laws in your state, your filing status, and your personal finances.
It’s normal for people to be scared of bankruptcy, since it really is a frightening process. Now that you have read this article, you now never again have to be scared of bankruptcy. Apply what you’ve learned here, and get a fresh start for you and your family.
