Drowning in debt can be overwhelming. Once you realize how much in debt you are, it can make you lose your focus on everything else in life. Once you realize you have to handle the problem, the real struggle begins. This article will help you get through your bankruptcy with a minimum of hassle.
You should avoid paying your taxes with credit cards and then immediately file for bankruptcy. Most states do not look at this debt as chargeable, and you could end up owing money to the IRS. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. This means using a credit card is not necessary, when it will just be discharged.
After a bankruptcy, you may not be able to receive any credit cards. If you find yourself in this situation, you may want to think about getting a secured card or two. This at least shows you are making an honest attempt at reestablishing your credit worthiness. After a while, you may be able to get unsecured credit again.
Think carefully about your different options before filing for bankruptcy. For example, you want to look into credit counseling. This is the best option for small debts. Also, you could try to get your payments lowered on your own. If you decide to do this, get a copy of anything you agree to.
Chapter 7
Before you make the decision to file Chapter 7 personal bankruptcy, take time to think about anyone it could affect. A Chapter 7 bankruptcy will relieve you of your legal responsibility to pay any joint debts. But, bear in mind, the debt now becomes the sole responsibility of your co-debtor.
Bankruptcy is a difficult and stressful process, and you will need all the help you can get. You need to do your research to find a good bankruptcy lawyer. Don’t let cost be the sole factor in who you hire. The most expensive attorneys are not necessarily the best ones. You can get good information about attorneys from friends,the internet and free consultations that most attorneys provide. It is even possible to watch a court hearing in order to see how well an attorney handles a case.
Exhaust all other option prior to filing personal bankruptcy. One good option might be credit counseling. There are a number of companies that will assist you, many of which are non-profit. They can speak with your creditor about getting your payments and interest reduced. Payments are then made to the creditor via the counseling service.
Don’t take big cash advances off your credit cards in the days prior to filing for bankruptcy. If you were to do this you could be charged criminally with fraud, because the act is intended to rip off the company.
You do not lose everything that you own when you decide to declare bankruptcy. You can keep your personal property. This will include things like clothes, jewelry and electronics. What you are allowed to keep depends on the laws of your state, the chapter under which you file for bankruptcy and how much money you owe to your creditors.
Compile a list of the money your currently owe. This is what you will use when you file for bankruptcy, so make sure every debt you owe is on the list. Include your exact balance on each account. Do not rush through this process; if you want the amounts discharged, you have to get those numbers right.
It is important to consult with an attorney who specializes in bankruptcy if you are headed toward bankruptcy. Here are some of the things a qualified bankruptcy attorney can do for you: give you solid advice, simplify the complexity of the process, represent you in the courtroom. They can also help to unravel the complexities of the paperwork and give you any further information you need.
Choose your bankruptcy attorney carefully. This kind of law is popular among inexperienced lawyers. The lawyer you choose will need to be experienced and licensed. Use the Internet to look at lawyer’s disciplinary records, background, and client ratings.
As you’re well aware of by now, it doesn’t take long to find yourself drowning in debt with no way out. This article just gave you a few good pointers on what you can do in order to gain control of your finances when facing bankruptcy. It is time to take action and fix your problems.
