Anything that leads you to declaring or filing for bankruptcy is probably not a happy story, but that does not mean that your life after bankruptcy cannot be better. Bankruptcy is all about giving you a fresh start. Continue to read this article to learn how good a bankruptcy can end up being for your life.
Millions of Americans file for bankruptcy each year because they can not pay their bills. If you are in this position, you need to be familiar with the laws in your area. Every state has a separate law having to do with bankruptcy. For instance, in some states you can keep your home and car, while other states prohibit this. It is important to understand the laws in your state before filing for bankruptcy.
You should avoid paying your taxes with credit cards and then immediately file for bankruptcy. In some places the debt can not be discharged, and you may still need to pay the IRS afterward. In most cases, you can use the adage that “a dischargeable tax is a dischargeable debt.” So it does not help you to put the tax bill on your charge card if you know the debt will be discharged anyway.
Retirement Funds
When bankruptcy seem inevitable it is important not to use your retirement funds or emergency savings to pay creditors. Unless there are no other options, your retirement funds should never be touched. Using your savings is necessary, but decimating it and leaving yourself dangling with no future financial security is not a good idea.
It’s not uncommon to learn soon after bankruptcy that you are unable to get an unsecured credit card easily. If you do, then try applying for a coupe of secured cards. This will be a demonstration of the seriousness with which you view rebuilding your credit rating. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
Be honest when filing for bankruptcy. Don’t hide liabilities or assets, as they’ll come back and haunt you. Wherever you file, that court has to be made aware of all details regarding your finances, positive and negative. Divulge all of your information so that you and your lawyer can devise the best strategy for dealing with your situation.
Spend time with loved ones. Undergoing bankruptcy can be a difficult experience. It takes time and a lot of people feel stressed and ashamed throughout this procedure. Some people do not even want to speak with others until the bankruptcy is official. Washing yourself in self-pity will only make the situation worse and can leave you feeling very 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.
Don’t spend too much time deciding whether or not you should file for bankruptcy. It’s hard to admit you need assistance, but the longer you decide to wait, the worse the debt can get. When you talk to someone professional in a timely manner, you will be able to get advice on what you can do prior to it getting too complicated.
Just because you have filed for bankruptcy will not necessarily mean you are going to have to give up everything you own. You will be able to keep your personal property. Items like clothes, electronics, household furnishings, and jewelry are included in that category. The personal items that you are allowed to keep will depend on your home state’s individual bankruptcy laws, your personal financial situation and the specific bankruptcy that you are filing for.
Select a bankruptcy attorney wisely. Many newer lawyers enjoy this kind of law. Try to get a lawyer that has a lot of experience and one that is properly licensed. By researching online you can check out a lawyer’s credentials, as well as customer reviews and any disciplinary action against him or her.
When you file for bankruptcy, you need to list every single debt that you want wiped out. Those who have unlisted debt will not have it included in any discharge. You need to ensure that you account for every debt, so you do not miss any that are eligible for being discharged.
No matter how bleak the situation; always be honest. It would be a very big mistake to be dishonest in regard to your assets and debts. This would be breaking the law. You can end up in jail for a while if you don’t properly record your assets and debts.
There are lawyers who maintain a telephone service meant to field calls from creditors attempting to contact debtors who have filed for bankruptcy. All you have to do is give the creditors this number. Then, they can call this number to confirm you are actually going through bankruptcy. You should receive no more calls from them.
Look over your debts before filing for bankruptcy to make sure they will clear your credit report, as you would not want to file unnecessarily. Student loans are one kind of debt that will have to be paid off even after declaring bankruptcy. If your debt is primarily made up of these types of debt, loan consolidation may be a better option than bankruptcy.
Learn from the mistakes you made that sent you to bankruptcy court. But, that does not mean that your post-bankruptcy life cannot be fantastic. In fact, if you apply the ideas and advice given in this article, you can truly make bankruptcy a turning point in your life towards better days.
